If only the month of May is considered, the increase was 23,096%. Tax revenue reached R$ 814 million (US$147m) in 2025, compared to just R$ 4 million (US$723,000) in the previous year.
This surge occurred because such platforms used to pay significantly lower taxes at the time. That changed with the implementation of the tax on Gross Gaming Revenue (GGR), which is the difference between the total amount wagered by players and the amount paid out in winnings or prizes.
The law that began taxing betting platforms was sanctioned in January 2024. Starting in October, platforms that did not apply for authorization to operate in the country had their operations suspended.
“Since February, we’ve already been collecting under the new taxation system for fixed-odds betting companies,” said Claudemir Malaquias, tax auditor and head of the Center for Tax and Customs Studies at the Federal Revenue Service.
The gambling sector has surpassed consolidated sectors of the economy in terms of revenue. In May, the tax revenue from betting exceeded that of sectors like education (R$516m/US$93.3m), production of machinery and equipment (R$408m/US$74m) and retail (R$507m/US$92m).
IOF hike reversed, but betting taxes remain
On Wednesday (25), Congress overturned recent government decrees that increased the IOF (Tax on Financial Operations). However, other recent government measures aimed at balancing public accounts remain in effect — including those that tax betting.
The government raised the tax on betting revenue from 12% to 18%. The increase will take effect four months after the publication of the related provisional measure, which was released on June 11.
Source: UOL
