Brazil Gambling Tax: New 2024 Rules Explained (2026 Guide)

How Brazil Taxes Gambling Winnings

Brazil's gambling landscape changed dramatically with the legalization and regulation of sports betting in 2024. With new laws come new tax obligations.

The headline: Gambling winnings in Brazil are subject to 15% withholding tax at source.

Brazil's New Gambling Regulations

After decades of legal ambiguity, Brazil established a clear framework:

Law 14.790/2023:

• Legalized online sports betting nationwide
• Created licensing system for operators
• Established tax framework for players and operators
• Took effect in 2024

Before 2024:

• Online betting operated in gray area
• Offshore operators common
• No clear tax guidance for players

Tax Rate on Gambling Winnings

For licensed Brazilian operators:

• 15% withholding tax on net winnings
• Deducted at source by operator
• Applies to amounts above threshold

Threshold:

• First R$2,112 in annual winnings: Tax-free
• Above threshold: 15% on net winnings

Example:

• Annual winnings: R$10,000
• Tax-free portion: R$2,112
• Taxable portion: R$7,888
• Tax: R$7,888 × 15% = R$1,183.20

How Withholding Works

Licensed operators handle tax collection:

Process:

• Operator calculates net winnings
• 15% withheld before payout
• Operator remits to Receita Federal (tax authority)
• You receive net amount

What counts as net winnings:

• Payouts minus stakes
• Calculated per withdrawal or monthly
• Losses offset gains within period

Licensed Operators in Brazil

The Secretaria de Prêmios e Apostas (SPA) licenses operators:

Major licensed operators (as of 2026):

• bet365 Brasil
• Betano
• Sportingbet
• Betfair
• Parimatch
• Stake
• KTO
• Betnacional
• Numerous others

Verification: Check the SPA website for the current list of licensed operators.

Unlicensed Operators

Betting with operators not licensed in Brazil:

Legal status:

• Operating without license is illegal for operators
• Player use is in gray area
• Enforcement focuses on operators

Tax implications:

• Technically still taxable
• No automatic withholding
• You must self-report on your tax return (DIRPF)
• 15% rate still applies

Risks:

• No consumer protection
• Payment issues possible
• Legal uncertainty

Professional Gambling

If gambling is your profession in Brazil:

Classification factors:

• Regular, systematic activity
• Primary income source
• Specialized methods
• Significant time investment

Tax treatment:

• May be taxed as business income
• Different rates may apply
• Can deduct business expenses
• Must register as MEI or empresa

Important: Most recreational bettors, even profitable ones, remain under the standard 15% withholding.

Annual Tax Return (DIRPF)

Gambling winnings affect your annual tax filing:

Licensed operator winnings:

• Already taxed at source
• Report as "Rendimentos Sujeitos à Tributação Exclusiva"
• No additional tax due

Self-reporting requirements:

• Unlicensed operator winnings must be declared
• Use monthly carnê-leão for ongoing income
• Reconcile in annual return

Record-Keeping Requirements

Brazilian tax law requires documentation:

Keep records of:

• All betting transactions
• Operator statements
• Withdrawal confirmations
• Bank statements
• Proof of operator licensing

Retention period: 5 years minimum

Why it matters:

• Receita Federal can audit
• Prove source of funds
• Support tax return entries

PIX and Banking

Brazil's instant payment system impacts gambling:

PIX for deposits/withdrawals:

• Most operators use PIX
• Instant transfers
• Creates clear banking trail
• Easier for tax authorities to track

Banking implications:

• Large deposits may trigger CPF verification
• Consistent gambling income visible to banks
• Consider keeping detailed records

Value Betting and Arbitrage in Brazil

For systematic bettors:

Impact of 15% tax:

• Reduces effective edge
• A 5% EV bet becomes ~4.25% after tax
• Still viable with strong edges

Market considerations:

• Growing operator competition
• Improving odds availability
• Futebol markets well-covered
• International sports also available

Practical advice:

• Use licensed operators only
• Factor tax into calculations
• Keep meticulous records

State vs. Federal Taxation

Federal level:

• 15% income tax on winnings (Imposto de Renda)
• Applies nationwide

State level:

• Operators pay state fees for licensing
• No additional player taxes at state level
• Some states have additional operator requirements

Penalties for Non-Compliance

Failing to report gambling income:

Consequences:

• Back taxes plus interest
• Fines up to 75% of unpaid tax (150% for fraud)
• Potential criminal charges for large amounts

Detection methods:

• Banking data shared with Receita Federal
• Operator reporting requirements
• CPF matching

Key Takeaways

1. 15% withholding tax on gambling winnings above R$2,112
2. Licensed operators handle tax automatically
3. Unlicensed gambling requires self-reporting
4. Keep detailed records of all betting activity
5. Professional gamblers may face different treatment
6. Brazil's regulated market provides legal clarity

This guide is for informational purposes. For personal tax advice, consult a Brazilian tax professional (contador or advogado tributarista).