Brazil Betting Operators Double Revenue in Early 2026 as Tax Contributions Match Tobacco and Agriculture Sectors

Licensed betting operators in Brazil have doubled their revenue in the first four months of 2026 compared with the same period in 2025. Tax revenue from the sector jumped from BRL2.2 billion ($440 million) to BRL4.5 billion. This performance already puts betting on par with the tax contributions of the tobacco industry and the agricultural sector, each of which pays approximately BRL1 billion per month.

As bookmakers’ tax contributions account for 37% of their revenue, the sector generated BRL12.2 billion in revenue during January to April 2026. The full-year 2025 revenue totalled BRL36.9 billion. With the World Cup now upon us, strong growth is expected this year.

Market Momentum and the World Cup Catalyst

The increase in revenue is linked to greater penetration of sportsbooks into Brazilian society through advertising. H2 Gambling Capital projects that the World Cup will provide a further boost, with the amount wagered during the tournament ranging from BRL20 billion to BRL25 billion.

Ed Birkin, managing director of H2, notes that the exact amount of extra revenue generated by the event remains uncertain because it will depend directly on the results of the matches on the field.

Plínio Lemos Jorge, president of the National Association of Games and Lotteries trade body (ANJL), says it is an industry that is gaining a foothold.

From an operator perspective, this early-year performance signals that the regulated market is maturing faster than many anticipated. The seasonal lift from major football competitions has always been a feature, yet the baseline growth now appears structural.

Consolidation Trends Among Licensed Operators

Since the regulated market began in 2025, the Ministry of Finance has issued 85 licences to companies operating 187 authorised websites. In 2025, 25 million individual taxpayers placed bets, with each player spending an average of BRL123 per month on online betting, excluding winnings.

At the end of 2025, 10 brands accounted for 68.8% of the market according to H2 estimates. The market leader is the Greek company Betano, with around 23% of betting revenue generated in Brazil in 2025. The British companies Bet365 and SportingBet, Pernambuco-based Esportes da Sorte and the Romanian company Superbet are vying for the top spot. They are followed by Blaze, Betnacional, EstrelaBet, CassinoPix and 7K in the top 10.

Marco Túlio Oliveira, CEO of Ana Gaming, which operates two of the top ten betting brands (7K and CassinoPix), believes that the growth rate of betting sites is likely to slow compared with recent years. He expects growth of between 10% and 15% this year. After that, the legal market will grow in line with the economy.

Ed Birkin observes that the online betting market is saturated with very small companies. Some will go bankrupt or be acquired by larger operators. It is not a popular thing to say, but the fact is that there are licensed operators that simply underperform and don’t have a strong enough structure.

This consolidation dynamic carries both opportunity and risk for client-partners evaluating Brazil. Larger, well-capitalised operators stand to capture greater share as weaker players exit, yet the speed of that rationalisation will test execution discipline.

Risks, Criticism and the Illegal Market Challenge

Some surveys indicate an increase in the number of gamblers suffering from compulsive gambling. At the same time, the CNC (Brazil’s National Trade Confederation) claims that the population’s debt is the fault of betting companies.

Andre Gelfi, president of the Brazilian Institute for Responsible Gambling (IBJR), says this is a matter of envy. Retailers are struggling because there isn’t enough to go around for Brazilian families. They see the betting companies advertising and think we’re making money – the money they’ve lost. He argues that debt also weighs on betting companies, as it reduces consumers’ ability to bet. The retail market’s limited resources are also limited for us.

Despite the industry’s massive revenue figures, competition from illegal betting sites and prediction markets remains the main topic of discussion between the sector and the government. According to betting operators, these sites offer bets without paying the BRL30 million licence fee and taxes. Nor do they comply with advertising regulations. The absence of operating costs allows illegal operators to offer more attractive prizes.

Illegal gambling also lacks a self-exclusion mechanism, which allows players to voluntarily block themselves from betting platforms. The system was created by the Secretariat of Prizes and Betting (SPA).

A study by the consulting firm LCA, commissioned by the IBJR, estimates that illegal betting accounted for approximately 41% to 51% of the total market. Under this scenario, the value of an illicit operation would range from BRL26 billion to BRL39 billion. The illegal market generated BRL16.3 billion in 2025.

Betting companies pressed the government to include prediction markets such as Kalshi and Polymarket on its list of illegal businesses. The Ministry of Finance complied and blocked the websites in late April. According to the IBJR, however, these websites continue to operate in Brazil despite the restrictions. The institute submitted a notification to the government on this matter on 29 April.

Ed Birkin acknowledges that there are no official figures on the matter.

This illegal segment represents a material limitation on regulated growth. Enforcement efforts ahead of the World Cup will be watched closely by LATAM operators and investors, as sustained leakage undermines both tax parity gains and responsible-gaming infrastructure.

The Bottom Line

Brazil’s licensed betting sector has delivered a striking early-year performance, doubling revenue and matching the monthly tax contributions of long-established industries like tobacco and agriculture. Yet the data also highlights an inflection point: market consolidation is accelerating, illegal operators continue to capture substantial share, and regulatory enforcement on prediction markets remains a work in progress. For client-partners active across LATAM, the months ahead will test whether stronger compliance and operational scale can convert this momentum into sustainable, regulated leadership. Those positioned to navigate both the World Cup opportunity and the enforcement push stand to benefit most as the market matures.

Operators and investors seeking structured entry or expansion guidance in this environment may review our LATAM advisory resources.