Elisa Marcante – SBC Noticias Brazil
The first economic report from Receita Federal reveals that the Bets market has generated R$3.8 billion in tax revenue. While the figure is viewed as a positive, Elisa Marcante reports that uncertainties persist on the long-term direction of the Bets’ tax course.
The Ministry of Finance (MEF) has published the Federal Tax Results of Brazil for the first half of 2025, providing the “first economic contribution of Brazil’s new online gambling/betting market”.
From January to June 2025, federal revenue collection exceeded R$1.4trn (€250bn), marking a real increase of 4.38% over the same period in 2024, adjusted for inflation (IPCA). This surpasses the R$1.38trn (€248bn) collected in the first half of last year.
In June alone, revenue reached R$234.6bn (€42.2bn) setting a new monthly record since 1995. This represents a 6.62% real increase over June 2024. According to the Ministry, this is the best tax revenue performance since 2000, both for June and for the year-to-date.
Tax receipts administered by the Receita Federal (RFB) contributed R$226bn (€41bn) in June, a 7% increase year on year. From January to June, revenue managed by the RFB reached R$1.36trn (€244bn), up 5.04% in real terms compared to 2024.
The report attributes this growth mainly to two factors: legislative changes affecting the Withholding Tax on Capital Income (IRRF-Capital) and tax policy adjustments linked to the state of emergency declared in Rio Grande do Sul, following severe flooding.
Bets opening contribution
One of the standout developments in 2025 has been the surge in revenue from online betting, including sports wagering and digital casino games.
In the first half of the year, the government collected approximately R$3.8bn (€685m) from this sector — a huge increase from just R$14m (€2.52m) in the same period in 2024. This figure includes taxes collected by the Receita Federal across economic sectors but excludes social security contributions.
As noted by Receita Federal in the “Activities related to gambling and betting” report, revenue of R$3.797bn was recorded from January to June 2025, compared to just R$14m in the same period of 2024, representing growth of 28,018%.”
Specifically, Corporate Income Tax (IRPJ) collected from betting companies reached R$849m (€152.82m) in 2025, up from only R$5m (€900,000) in the same period last year.
A more detailed look at tax receipts shows that R$331m (€59m) came from fixed-odds lottery quotas, while an additional R$211m (€38m) was collected in June through PIS/Cofins taxes on revenues from betting-related services.
This spike in revenue is largely due to new regulatory frameworks introduced in late 2023 and early 2024, which brought the sector more firmly under formal taxation — significantly improving compliance and state revenue.
Bets Tax hike takes centre stage
Following Brasília’s summer recess, the joint committee of Congress and the Senate is expected to decide whether to raise the Gross Gaming Revenue (GGR) tax on online operators from 12% to 18%.
The increase is supported by Finance Minister Fernando Haddad, whose original budget proposal was rejected, in part due to his efforts to intervene and reset the IOF tax rates on financial services and transactions.
In a recent interview with economist Eduardo Moreira, Haddad strongly criticised the design of the Bets Regime, stating: “If it were up to me, I’d hit the stop button. No amount of tax revenue justifies the mess we’ve landed in.”
To the media’s surprise, Haddad added that “Congress should reconsider gambling” — a law he himself had played a key role in crafting.
Brazilian operators responded swiftly, accusing Haddad of using the Bets regime and online gambling as a scapegoat for his rejected budget plans.
As it stands, the PT government is entering a period of tough negotiations over its tax plan, which is essential to funding its flagship initiatives including a new Public Investment Programme, the PAC housing strategy, and key projects in green energy.
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