At the beginning of the year, Brazil’s tax authority published new rules for online gambling platforms, driven by the sector’s rapid growth in the country. Over the past five years, fueled by the pandemic and the World Cup, local citizens have increased their spent on gambling to the equivalent of 3,5 millions euros each month of last year, according to local Centra Bank’s data, an impressive amount for a country in which the minimum wage is currently as low as 3,250 euros yearly.
In response, the Brazilian government has implemented new tax regulations for online betting platforms. Since January 2025, companies wishing to operate in the country must pay a one-time licensing fee of 30 million reais (approximately 5 million euros).
Additionally, a 12% tax on gross revenue will be allocated to social programs and public health initiatives. Almost 90 companies from all around the globe already reagistered and are operating legally.
Among the biggest beneficiaries of this betting wave is the British company Bet365, which has become a major sponsor of sports channels, championships and events in Brazil. Founded in 2000 by Denise Coates, Bet365 quickly became one of the world’s top betting platforms, serving millions of customers across nearly 200 countries.
Another European company with a strong presence in Brazil is NetBet. Founded in 2001 and headquartered in Malta, NetBet was one of the first operators to sponsor a Brazilian football team after the legalization of fixed-odds betting in 2018. The company has sponsored clubs like Fortaleza, Vasco da Gama, and Red Bull Bragantino, in addition to forming partnerships with mixed martial arts events and university leagues.
There is also Flutter Entertainment, the parent company of brands like Paddy Power and Betfair, recently acquired a majority stake in NSX Group, the operator behind Betnacional, in a deal worth around $350 million. This acquisition aims to strengthen Flutter’s position in Brazil ahead of the upcoming regulatory changes.
Dribbling Informality
Robust companies like those, however, are not the main issue the local government is trying to address. The real concern lies with the industry’s informal nature, where it operated with little or no regulation, following the same rules as physical lotteries — something that no longer makes sense.
The regulation of Brazil’s betting sector is not just about increasing government’s revenue, it also aims to tackle issues like gambling addiction, consumer protection and financial crimes, such as money laundering and tax evasion. Measures such as banning bets via credit cards or loans are being introduced to mitigate the risks associated with compulsive gambling.
With the new rules in place, Brazil’s online betting market is expected to become more structured and secure, attracting investments from global firms while offering consumers regulated and reliable options. The ability of companies to adapt to local requirements will be key to succeeding in this growing market.
