Amid the excitement over the newly regulated betting market in Brazil, the industry is concerned that operators will face huge tax bills within the first year of legal online gambling.
The licensed betting market in Brazil launched on 1 January, with a 12% tax rate on gross gaming revenue (GGR) for operators, as well as a 15% tax on player winnings over BRL2,824 ($547.25).
Additionally, fixed-odds betting was included in the recent tax reform in Brazil, with the sector now expecting to face a consumption tax, dubbed by some as a ‘sin tax’, from 2026.
Fourteen operators currently hold full licences, including local company Rei do Pitaco, which turned its attention from fantasy sports to fixed-odds betting ahead of the market launch.
