TLDR Brazil collected R$3.397 billion in sports betting tax in Q1 2026, a 123.7% increase from Q1 2025. The growth is largely driven by the regulatory framework that took effect on January 1, 2025, including a 12% tax on Gross Gaming Revenue. Monthly figures show a declining trend: January brought in R$1.49 billion, February R$1.04 billion, and March R$859 million. New fiscal policies approved in late 2025 raised tax rates on betting operators and cut tax benefits by 10%. Complementary Law 224/2025 will gradually increase the betting tax rate from 12% to 15% by 2028.
Brazil’s sports betting industry generated R$3.397 billion in tax revenue during the first quarter of 2026. The figures were released by Brazil’s Federal Revenue Service this week.
The Q1 2026 total represents a 123.7% increase compared to the same period in 2025, when the government collected R$1.519 billion. The data was presented by Claudemir Malaquias, head of the Center for Tax and Customs Studies, and Marcelo Gomide, Coordinator of Forecasting and Analysis.
The jump in tax revenue is closely tied to Brazil’s sports betting regulation. While the legal framework was signed into law in 2023, licensed operators only began operating officially on January 1, 2025.
That means Q1 2025 was the very first quarter of regulated operations. The year-over-year comparison reflects an industry still getting off the ground during its opening months.
A key part of the regulation is a 12% tax on Gross Gaming Revenue. This levy became the main source of the government’s betting-related income once enforcement began.
Monthly Tax Revenue Fell Steadily Through Q1
Despite the strong quarterly total, the month-by-month numbers tell a different story. January 2026 was the peak, with R$1.49 billion collected.
February saw a 30.2% decline, dropping to R$1.04 billion. March fell again by 17.4%,