Net Betting Revenue is a crucial financial indicator for the sports betting and online gaming sector. This metric reflects the amount effectively available for allocation after the mandatory deductions stipulated by current legislation.
Technical Note SEI No. 229/2025/MF from the Ministry of Treasury establishes that betting operators must incorporate the rewards offered when calculating Gross Betting Revenue (GGR) and, consequently, Net Revenue.
Furthermore, it establishes guidelines on the accounting of these rewards, the display of information in betting systems and the sending of data to the Betting Management System (SIGAP), ensuring regulatory compliance and promoting responsible gaming practices.
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Gross and net betting revenue
According to Article 30 of Law No. 13,756/2018, operators mainly allocate the proceeds to the payment of prizes and income tax levied on these prizes.
After these deductions, 88% of the revenue is allocated to cover the operational expenses of operating agents, while 12% is allocated for other purposes provided for by law.
Gross Betting Revenue (GGR) represents the total bets placed before the aforementioned deductions. Net Betting Revenue (NGR) is obtained by subtracting from GGR the amounts allocated to prizes and income tax, as provided in § 1º-A of Article 30.
Rewards offered by betting operators
Article 29 of Law No. 14,790/2023 prohibits betting operators from granting advances, advances, bonuses or prior advantages to place bets, including promotions and advertisements that seek to attract new bettors.
Ordinance No. 1,231/2024 complements this prohibition, specifying that operators can only offer rewards after the user registers and places at least one bet.
Rewards can be non-financial, such as free spins on online games, or financial, such as cash bonuses. Non-financial rewards do not affect the bettor’s graphical account, while financial rewards are recorded in both the graphical and transactional accounts.
Inclusion of rewards in GGR
Withdrawable rewards can make up GGR if they result in new bets by the bettor. When you convert a cash bonus into additional bets, you must include the value of that bonus in the GGR calculation.
Additionally, it is important to incorporate non-withdrawable rewards into GGR. Even if they are not converted into bets, they represent, after all, direct financial incentives for the operation of lotteries.
Data reporting in SIGAP
The Betting Management System (SIGAP) requires users registered on betting platforms to report rewards by CPF in detail. For non-financial rewards, only report the quantity in the online game archive, while financial rewards must include both the quantity and the dollar value.
The Prizes and Betting Secretariat plans to improve the data model in the future to enable a more detailed specification of these reports.
