Online gambling in Brazil generates R$ 7.9 billion for federal government
Brazil’s Federal Revenue Service reported that the federal government collected R$ 7.9 billion from fixed-odds betting platforms and online games during 2025. This amount represents a growth of approximately 16,000% compared to the R$ 49 million collected in the previous year from the same sector.
In October alone, the revenue from online gambling reached R$ 1.093 billion, compared to R$ 11 million recorded in the same month of 2024. In September, R$ 1.206 billion was collected.
Claudemir Malaquias, the head of the Centre for Tax and Customs Studies explained that changes in legislation regulating betting were crucial for the significant growth in revenue.
“Although the Provisional Measure (MP) presented by the government included mechanisms to increase revenue from the sector, there was no increase in the tax rate from 12% to 18% per year. This happened because the text was subject to the noventena rule, and the MP expired before the 90 days necessary for implementing the tax increase,” said Malaquias.
The tax official was referring to Provisional Measure 1303/25, which included, among other items, an increase in the taxation of bets from 12% to 18%. However, the measure lost its validity because it was not voted on by the Chamber of Deputies within the deadline.
The “noventena rule” is a provision in Brazilian law that mandates a minimum period of 90 days for a provisional measure to remain in effect before it can be enacted into law. This rule means that if a provisional measure is not converted into law by Congress within 90 days, it automatically expires and ceases to have any legal effect.
According to Malaquias, the increase in revenue largely reflects the new legal framework that has allowed the sector to expand rapidly, even though the tax rate remained at 12% per year.
The federal government could well see an even greater increase in revenue from online betting if Bill 5473/25, which raises taxes on betting sites, fintechs, and banks, is approved by the National Congress.
