The Federal Revenue collected R$3.026 billion between January and May from taxes on online betting companies. The amount represents an increase of 23,000% compared to the same period last year.
In May alone, revenue reached R$814 million. This amount corresponds to the 12% tax on gross betting revenue, known as Gross Gaming Revenue (GGR).
Furthermore, the market reached an impressive value in the first five months of the year. Based on data released by the IRS, it is possible to estimate that the gross revenue of the online betting sector exceeded R$25.2 billion in the accumulated amount up to May. This value already exceeds the projections made before the regulation of the sector.
In August last year, Itaú released a report with estimates on the size and impact of the online gambling market. Based on the balance of payments, the institution projected that the sector would move between R$8 billion and R$20 billion per year, with an average of R$12 billion.
However, these values were exceeded in just five months, according to data from the Federal Revenue Service.
Regulation of the betting sector
Sports betting regulations in Brazil have been in force since January 1st. Therefore, the government raised R$2 billion from the payment of concession fees alone. Authorities took down thousands of irregular websites during the transition process to the new regulated environment. In addition, communication campaigns began to emphasize the concept of “responsible gaming” more strongly.
This year, the Federal Senate approved Bill No. 2,985/2023, which establishes new rules for advertising by sportsbooks.
The text prohibits the presence of artists, athletes, digital influencers, members of technical committees, communicators, authorities or any individual in advertising material for betting companies, even if they appear as extras. The measure was criticized by entities in the sector.
