According to data released by the Federal Revenue Service, the revenue obtained through July represents a significant increase compared to the same period last year. Revenue from sports betting and lotteries has been growing due to the expansion of the sector and strengthened oversight.
The Federal Revenue Service revealed that the online betting sector contributes substantially to this total, which includes tax payments by companies operating legally. "Taxation has proven to be an important revenue collection tool, in addition to helping regulate the market," stated Deputy Secretary of the Federal Revenue Service, João Pereira.
Of the total revenue collected, approximately R$2.1 billion (US$385m) is classified as "lottery revenue," meaning it has a specific legal purpose, such as funding social security or sports.
The remainder, approximately R$2.6 billion (US$475m), is traditional taxes (such as income tax, PIS, and COFINS) paid by companies operating in the sector.
"We believe the number will be close to double what we're reporting now," said Marcelo Gomide, analysis coordinator at the Federal Revenue Service, noting that the effective collection of taxes on betting companies began in January.
"In principle, I don't see a problem with this R$10 billion (US$1.85bn) figure," he said, referring to the government's revenue expectations from the sports betting and online gaming sector.
Approved by the Chamber of Deputies at the end of 2023, the taxation of bets was one of the measures advocated by the government's economic team to increase federal revenue.
The regulation provides for the payment of taxes by companies and bettors, establishes rules for the operation of betting, and defines the distribution of funds collected by the government from the activity.
Currently, the tax rate on bets is 12% of net revenue (GGR). The government published a provisional measure that raises the rate to 18% starting in November of this year. The provisional measure is in effect, but must be ratified by the National Congress.
Source: GMB
