The online gaming and betting market in Brazil is experiencing significant growth, with players spending around 54 billion reais (US$11.1 billion) from the beginning of 2023 to November on various online gaming and betting products. This data comes from the Central Bank, as foreign companies earned revenue in Brazil over an 11-month period, as reported by the Brazilian news portal Folha de S. Paulo.
In a surprising turn, the amount of money spent on gambling in Brazil in 2023 surpassed the revenue from beef exports, which earned USD$9.5 billion. The country has exceeded expectations and set new standards for its online gambling and betting industry. The earnings from the industry are significant, with 43.3 billion reais, or US$8.9 billion, being used to create resources to pay winners, and 10.7 billion reais, or US$2.2 billion, being used to cover service fees and taxes.
With the recent legalization of online gambling, the Brazilian market is expected to thrive even further in the future. Experts anticipate that figures will continue to grow and that online gambling will significantly contribute to this growth.
In response to this growth, President Luiz Inácio Lula da Silva sanctioned Bill PL 3626/2023, which set a 12% revenue tax for all online betting companies and a 15% tax on player prizes. However, Lula vetoed the decision to exclude 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 set to be established soon to oversee taxes and prevent criminal activities such as money laundering.
Members of this new regulatory body will be appointed from both the public and private sectors, with the aim of ensuring the industry operates within the law and without exploitation. Overall, the thriving online gaming and betting market in Brazil is set to continue growing, contributing significantly to the country’s economy.