Brazil Sees Historic Surge in Gambling Tax Revenue Following New Regulatory Framework

The Brazilian government recorded an impressive BRL6.8 billion in tax revenue from gambling and fixed-odds betting activities in 2025, according to recent data released by the Federal Revenue Service. The amount marks an unprecedented 17,000% increase compared to the BRL38 million collected in 2024, a result attributed to the formal integration of the sector into the country’s regulated tax system.

In September alone, betting-related tax revenue totaled BRL1.7 billion, a remarkable rise from the BRL7 million generated during the same month last year.

Claudemir Malaquias, a tax and customs expert at the Revenue Service, explained that while the surge in figures appears extraordinary, it is mainly the consequence of legislative changes rather than a sudden explosion in betting activity. “It’s an expressive figure because it’s the first year the new regulatory framework is being fully implemented,” said Malaquias.

The failed provisional measure that aimed to increase the betting tax rate from 12% to 18% had no bearing on these results, as it expired before meeting the mandatory 90-day period required for tax hikes under Brazil’s constitutional guidelines.

Overall, federal tax collection for September amounted to BRL216.7 billion, pushing total revenue for the year to BRL2.1 trillion — the highest level since 2000.

A recent study further revealed that betting transactions experience significant spikes around football matches. Data gathered from rounds of the Brasileirão, Brazil’s premier football league, showed that betting volumes surged by as much as 55% in the hour leading up to kick-off, particularly during matches involving major clubs such as Flamengo, Corinthians, Palmeiras, Santos, and São Paulo. Activity typically declined during gameplay but rebounded after the final whistle, remaining around 20% below pre-match peaks.

By fLEXI tEAM