The Federal Revenue Service reported on Thursday (21) that taxes on betting generated R$ 4.73 billion for public coffers in the first seven months of this year. The expectation is that this amount will double by the end of the year, reaching the government’s forecast of collecting R$ 10 billion from sports betting and online games. In July alone, R$ 928 million was received, compared to just R$ 8 million in the same month of 2024.
According to data released by the Federal Revenue Service, the revenue collected by July represents a significant increase compared to the same period last year. Revenue from sports betting and lotteries has been growing due to the sector’s expansion and the strengthening of oversight.
According to the Federal Revenue Service, 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 tool, in addition to helping regulate the market,” stated the Deputy Secretary of the Revenue, João Pereira.
Of the total collected, approximately R$ 2.1 billion is classified as “lotteries,” (sports betting is classified as a lottery under Brazilian legislation) which have a specific legal allocation, such as funding for social security or sports. The remainder, about R$ 2.6 billion, consists of traditional taxes (such as Income Tax, PIS, and COFINS) paid by companies operating in the sector. Currently, the tax rate on bets is 12% on Gross Gambling Revenue (GGR). The government published a provisional measure that raises the tax rate to 18%. in October. The provisional measure must be ratified by the National Congress.
“We believe the number will be close to double what we are presenting now,” said Marcelo Gomide, the analysis coordinator at the Revenue Service, highlighting that effective taxation on betting companies began in January.
“Initially, I do not see a problem with the figure of R$ 10 billion,” he said, referring to the government’s revenue expectation from the sports betting and online gaming sector.
The post Online gambling to generate R$ 10 billion for the Brazilian government by the end of the year appeared first on G3 Newswire.
The Federal Revenue Service reported on Thursday (21) that taxes on betting generated R$ 4.73 billion for public coffers in the first seven months of this year. The expectation is that this amount will double by the end of the year, reaching the government’s forecast of collecting R$ 10 billion from sports betting and online…
The post Online gambling to generate R$ 10 billion for the Brazilian government by the end of the year appeared first on G3 Newswire.