According to the Federal Revenue Service (RFB), Brazil’s online betting market generated BRL3.8 billion ($687.5 million) in tax revenue during its first six months of operation, despite ongoing regulatory adjustments.
While June’s tax collections fell 6.1% short of May’s figures, legal experts like Udo Seckelmann (Bichara e Motta Advogados) say the early numbers reaffirm the strength of regulation over prohibition, predicting tax revenues will grow further as the framework stabilises.
However, looming challenges threaten this growth:
- The Senate’s approval of new advertising restrictions
- A provisional tax hike on GGR to 18%
- Continued uncertainty around land-based betting legalisation
Seckelmann warns that overly burdensome rules could push operators and players back to unregulated markets, ultimately hurting tax revenue. For Brazil to fully harness the sector’s potential, regulations must maintain high channelisation and market competitiveness. With land-based gambling legalisation still pending and estimated to bring in BRL20 billion annually if passed Brazil’s betting sector stands at a pivotal crossroads.
