Data from the Federal Revenue Service shows that revenue from licensed betting operators in Brazil doubled in the first four months of 2026 compared to the same period in 2025. Tax revenue from this sector surged from BRL2.2 billion ($440 million) in early 2025 to BRL4.5 billion from January to April 2026.
This year’s tax contributions are nearing those of the tobacco industry and the agricultural sector, each contributing around BRL1 billion monthly in taxes. With bookmakers’ tax payments making up 37% of their revenue, the betting sector generated BRL12.2 billion during the first four months of 2026. This information was published in an article in Folha de São Paulo on Sunday.
In 2025, the betting sector's total revenue reached BRL36.9 billion. The industry's performance is sensitive to seasonal variations, particularly during major football events, which usually drive revenues up as the year progresses. With the World Cup approaching, significant growth is anticipated.
"It’s an industry that is gaining a foothold," stated Plínio Lemos Jorge, the president of the National Association of Games and Lotteries (ANJL).
The rise in revenue corresponds with increased visibility for sportsbooks in Brazilian society, bolstered by advertising, according to Lauro Gonzalez from the Getulio Vargas Foundation. H2 Gambling Capital forecasts that the World Cup could further amplify revenue, estimating that wagers during the tournament might hit between BRL20 billion and BRL25 billion. Ed Birkin, managing director of H2, noted that the precise revenue boost will depend largely on the results of the matches.
Since the market's regulation began in 2025, the Ministry of Finance has issued 85 licenses for 187 authorized betting websites. In the previous year, 25 million individual taxpayers participated in online betting, spending an average of BRL123 monthly, excluding winnings.
At the close of 2025, ten brands dominated the market, accounting for 68.8% of betting revenue. Leading the pack is the Greek firm Betano, responsible for approximately 23% of that revenue. Competing closely are British firms Bet365 and SportingBet, along with Pernambuco’s Esportes da Sorte and Romanian company Superbet. The top ten also includes Blaze, Betnacional, EstrelaBet, CassinoPix, and 7K.
Marco Túlio Oliveira, CEO of Ana Gaming, which owns two of the leading brands, anticipates a likely slowdown in the growth rate of betting sites compared to recent years. He mentioned, "It was a market that didn’t exist, and now companies have established themselves," and forecasts an annual growth rate between 10% and 15%. Oliveira believes future growth will align with overall economic trends.
Birkin pointed out that the online betting market is crowded with many small operators, predicting that some will fail or be bought by larger companies. "It’s not a popular thing to say, but the fact is that there are licensed operators that simply underperform and don’t have a strong enough structure,” he remarked.
There are growing concerns about compulsive gambling, with some surveys indicating an uptick in affected individuals. The Brazilian National Trade Confederation (CNC) claims that the population's indebtedness stems from betting activities. However, Andre Gelfi, president of the Brazilian Institute for Responsible Gambling (IBJR), dismissed these claims as mere "envy." He explained that retailers feel pressure as they struggle for resources and view the advertising by betting companies negatively in light of their losses.
Another pressing issue within the industry is competition from illegal betting sites. Operators argue that these sites evade the BRL30 million licensing fee and taxes and do not adhere to advertising regulations. This lack of overhead allows them to propose more appealing prizes.
Illegal gambling also lacks a self-exclusion mechanism, which enables players to voluntarily block access to betting platforms, a system established by the Secretariat of Prizes and Betting (SPA). A study by consulting firm LCA, commissioned by the IBJR, estimated that illegal betting accounted for about 41% to 51% of the overall market, valuing illicit operations between BRL26 billion and BRL39 billion. The illegal market was said to have generated BRL16.3 billion in 2025.
Betting companies urged the government to classify prediction markets like Kalshi and Polymarket as illegal. The Ministry of Finance complied by blocking those websites in late April, yet according to the IBJR, they continue to function in Brazil despite this action. On 29 April, the IBJR alerted the government to this issue.
H2’s analysis, based on findings from the Central Bank regarding overseas remittances, cryptocurrency activities, and traffic to illicit websites, estimated that the black market yielded BRL16.3 billion in 2025. Birkin acknowledged the absence of official figures on this illegal sector.
