The Brazilian online gaming and betting market has seen a significant increase in popularity, with players in Brazil spending over 54 billion reais (US$11.1 billion) on various online gaming and betting products from the beginning of 2023 to November of the same year.
The data, as reported by the renowned Brazilian news portal Folha de S. Paulo, was obtained from the country’s Central Bank, and the figures reflect the revenue earned by foreign companies in Brazil throughout the 11 months of 2023. Interestingly, the amount of money spent on gambling in Brazil surpassed the revenue from beef exports in the country, with beef exports earning USD$9.5 billion in 2023.
The Central Bank’s revenue report has set new standards for the online gambling and betting industry in Brazil, exceeding expectations and pointing to a thriving market. The revenue earned is split, with 43.3 billion reals, or US$8.9 billion, being used to create significant resources to pay the winners, while the remaining 10.7 billion reals, or US$2.2 billion, will cover service fees and taxes, with the rest of the money going to the operators.
The future of the Brazilian market is expected to become even more thriving with the legalization of online gambling, with experts anticipating continued growth and significant contributions from the online gambling sector.
However, the President of Brazil, Luiz Inácio Lula da Silva, recently sanctioned Bill PL 3626/2023, introducing new regulations related to sports betting and online casino operations. The bill sets the revenue tax at 12% for all online betting companies, with a 15% tax on the prizes won by players. Interestingly, Lula vetoed the decision to exempt players who won up to R$2,112 a month from paying taxes.
Additionally, a new regulatory body, the National Gaming and Betting Secretariat (Secretaría de Apostas Esportivas), is expected to be established soon to oversee taxes and prevent money laundering and other criminal activities. The new body is set to begin its operations by the end of January and will be comprised of both public sector employees and private sector experts.