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Brazil’s betting and lottery industries have already filled government coffers with BR4.73 billion in tax revenue during the first seven months of 2025, according to the Federal Revenue Service. That number is split between BR2.6 billion from sports betting operators and BR2.1 billion from lotteries.
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The country appears on pace to meet or even exceed the government’s forecast of BR10 billion by the end of the year. For officials in Brasília, the results strengthen the argument that betting and lotteries are now permanent revenue engines for the federal budget.
The new framework was introduced in December 2024, when President Lula signed legislation regulating the betting industry. It set clear rules for operators and bettors while also deciding how the funds would be allocated across public sectors.
The distribution formula established by law ensures that multiple ministries benefit. Roughly 36% goes to the Ministry of Sport and related committees, 28% supports the Ministry of Tourism, and 13.6% strengthens Public Security. Education, social security, health programs, civil society organizations, the Federal Police Fund, and even the Brazilian Agency for Industrial Development also receive their share.
At present, online betting operators are taxed at 12% of gross gaming revenue. However, the government issued a provisional measure that raises the rate to 18% starting in mid-November. The rule is already active, but Congress must still vote to make it permanent.
If approved, the change would significantly boost government collections heading into 2026, tightening margins for operators but providing more resources for social programs.