Brazil’s federal tax office confirmed that in Q1 2026 regulated gambling revenues surpassed R$3bn for the first time since Brazil introduced its regulated gaming law which continues to highlight the increasing financial footprint of a newly regulated Brazilian gaming industry.
Within that same quarter, total revenues for licensed gambling operators were R$3.4bn, an amazing 123.7 percent higher than R$1.5bn in revenues during the same three-month period in 2025.
This dramatic revenue increase follows the establishment of fixed odds gambling rules, which created a structure for gambling operations to be regulated and taxed; regulated gambling operators are now required to comply with a formal framework of rules governing gambling and will be required to pay taxes in accordance with the regulatory framework set forth by the Ministry of Economy.
The increase in revenue can largely be attributed to increased regulation, clearer taxation rules and enhanced monitoring by the government of the gambling system.
The milestone for the legal Brazilian gaming sector occurred on January 1st, 2025, with all licensed operators legally able to provide legal gaming operations granted by law in 2023. One of the most significant milestones was the introduction of a 12 percent gross gaming revenue tax that is assessed on regulated operators.
In the coming years, operator tax burdens will increase, as the GGR tax rate will gradually be compressed per the terms of the Complementary Law Project (PLP 128/2025) that has been approved by the Congress of Brazil as follows:
- 13 percent for 2026
- 14 percent for 2027
- 15 percent for 2028
The government’s phased approach to increasing the GGR tax rate reflects the government’s desire to maximize revenues from the regulated gambling sector for use in the country’s budget.
