The Brazil Federal Revenue Service released tax collection data for the first eight months of 2026 on Tuesday, revealing significant figures for the country’s betting sector. From January to August, the Brazilian government collected BRL2.11 trillion ($411.2 million), an increase of nearly 12% compared to the same timeframe in 2025. Notably, revenues from games and betting surged by 69.25%, amassing BRL9.91 billion during this period.
Despite this impressive growth, there was a noticeable decline in August, with revenues dropping by 20.5% compared to July. August's revenue from betting totaled BRL1.163 billion, down from July’s BRL1.463 billion. January's figures were the highest for the year, nearing BRL1.5 billion.
Revenue fluctuations in February and March were attributed to seasonal impacts from Carnival festivities. Starting in April, revenues began to see an upswing, with July's figures almost matching those of January. However, August saw a decline, possibly linked to growing criticism of the betting industry, and it marked the first complete month post-World Cup, which had previously boosted betting activities.
Initial projections aimed for a historic revenue of BRL16 billion by the end of 2026. However, given August's decline and the stabilization of revenue, figures are now anticipated to be closer to BRL14 billion. Concerns are rising that if the government proceeds with plans to ban online casinos—a key revenue source—the total could fall to around BRL12 billion by year-end. Without this segment, monthly revenues might drop to approximately BRL600 million.
The revenue figures include federal taxes such as Corporate Income Tax (IRPJ), Social Contribution on Net Profit (CSLL), and taxes on gross revenue through PIS/Cofins.
While nearly BRL10 billion has been generated, President Lula continues to propose stringent measures for the sector, raising fears about lost revenue and potential legal challenges over proposed restrictions. Industry stakeholders caution that a ban could drive funds into illegal markets, ultimately resulting in compensation claims that may exceed ten times the revenue collected from January to August.
