According to data released by the Brazilian Federal Revenue Service (RFB), in the first six months since the implementation of gambling regulation in Brazil, the industry has contributed 3.8 billion reais (approximately 687.5 million US dollars) in taxes. This figure was disclosed in the tax monthly report published on July 24, showing the preliminary fiscal achievements of President Lula's government in the gambling sector.
In comparison, the UK, as a mature market, reached 1.62 billion pounds (2.2 billion US dollars) in gambling tax revenue in the first half of 2022. However, considering that Brazil is still in the early stages of the market, the initial results already show potential.
Although gambling tax revenue dropped from 814 million reais in May to 764 million reais in June, a monthly decrease of 6.1%, legal expert Udo Seckelmann from Bichara e Motta Advogados law firm believes this is a normal fluctuation. He emphasizes that even though the market is not yet fully formed, the tax performance already sufficiently demonstrates: regulation brings more public benefits than laissez-faire disorder.
Seckelmann points out that the current market focus is still on license issuance, technological access, and regulatory framework construction, rather than optimal tax strategies. Therefore, there is still room for tax revenue growth in the future.
However, at the same time, the uncertainty of the regulatory environment also puts pressure on the industry. At the end of May this year, the Brazilian Senate passed advertising restriction measures and temporarily raised the tax rate on total gambling revenue to 18%, causing widespread concern among operators.
Seckelmann warns that regulation must strike a balance between protection and incentives. If restrictions are too severe, it may drive players and operators towards the grey market, thereby harming the tax base and market stability.
Currently, the main source of gambling tax revenue in Brazil comes from online platforms. Physical gambling has not yet been legalized, and its fate is still pending. The vote on Bill PL 2,234/2022 scheduled for July was postponed and will be rearranged after the congressional recess.
However, once land-based gambling is approved, the Brazilian government is expected to reap an additional annual tax revenue of about 20 billion reais, further boosting tourism and local finances.
Despite the challenging road ahead, the Brazilian gambling market is rapidly moving from a "potential stock" to a "fiscal pillar"—provided that regulation is "flexible and not overly restrictive".
