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Brazil’s Federal Revenue Service (Receita Federal) recorded federal taxes of R$8.82 billion collected between January and November 2025, belonging to gambling activities and betting companies. These numbers were disclosed on Monday (22). The tax revenue collected just for the month of November hit R$852 million, indicating the swift and positive financial effect that regulation has brought about to this market.
The money raised from betting and gambling translates to a portion of the R$2.594 trillion from federal taxes collected over the first eleven months of 2025. This figure reflects a real increase of 3.25% from the same period in 2024, which registered a figure of R$2.391 trillion.
Regulation Transforms the Sector’s Tax Contribution
The taxation accruals generated from “gambling and betting activities” also experienced large jumps, growing from R$13 million in November 2024 to R$852 million in November 2025. Notably, this growth is influenced by the regulatory system introduced this year and is responsible for integrating all betting firms into the tax base.
Of the R$8.82 billion revenues collected from this sector in 2025 so far, R$1.897 billion was contributed by PIS/Pasep and Cofins. Corporate income taxes contributed R$1.536 billion of this total. Furthermore, another substantial portion of R$3.114 billion was contributed by an item titled “Union Share of Fixed-Quota Lottery Betting Revenue.”
At present, the allocation of the gross gaming revenue shares 88% among betting operators and 12% in favor of the public sector. This framework will alter in the years to come. The government intends to progressively elevate taxation to 15%, through a transition process scheduled between 2026 and 2028.
Expectations for 2026: Higher Taxes on Bets and Fintechs
The Federal Revenue Service reported growth in almost all taxes until the end of November. In the individual tax category, the largest real increase in November occurred in the Financial Transactions Tax (IOF), which had a real increase of 39.95% and reached R$8.614 billion in November.
Claudemir Malaquias, director of the Tax and Customs Studies Center at the Federal Revenue Service, said, “The effects of taxes will be measured only next year. The impact of tax collection will be evaluated starting at the beginning of next year.”
As stated by Malaquias, new taxes will come into effect after a 90-day implementation period. Some of the new taxes include a higher rate for fintech companies, from 9% to 15%, while the rate allocated from Gross Gaming Revenue (GGR) for betting operators will rise from 12% to 18%.
“The expectation is that the trajectory of tax revenue will follow the trajectory of economic activity in 2026”, Malaquias stated. “The team responsible for projections is very comfortable, because there is strong alignment between economic activity and tax collection results. This alignment makes projections easier.”
Fiscal Measures and Broader Economic Impact
Tax reform changes were included in a bill that was approved by Congress last week and cut back benefits by 10%. The estimated effects from changes in the Chamber of Deputies for cuts in benefits are R$17.5 billion.
The new taxation on fintechs alone is expected to contribute approximately R$1.6 billion in additional revenue. Increased taxation on Interest on Equity (JCP) should add R$2.5 billion, while higher taxes on betting operators are projected to generate an extra R$850 million in 2026.
The approved laws also call for an escalating rate of the Social Contribution on Net Profit (CSLL) for fintech. This rate will increase from 9% to 12% by the end of 2027, followed by 15% in 2028. As for banking institutions, the CSLL rate is 20%, although the actual taxation for non-banking financial institutions appears more punitive owing to their greater profitability.
The taxes in Brazil reached their highest levels in the last two decades in the year 2024 and continue in the same manner in the year 2025. According to congressional estimates, the cumulative effect of all newly passed taxes for the year 2026 is estimated at R$22.45 billion, emphasizing the increasing fiscal weight of the betting and finance sectors in the country.
Source: BNL Data
