Brazil: Online gaming and casino revenue expected to reach $20 billion in the next three years

In Brazil, the online gaming and casino sector is expected to earn more than BRL 100 billion (about $20 billion) in the next three years (2024, 2025 and 2026). This is the projection made by the Federation of Hotels, Bars, and Restaurants of the State of São Paulo (Fhoresp) and the Institute of Development, Tourism, Culture, Sports and Environment (IDT-CEMA).

With the 12% tax applied to gambling companies, it is estimated that the Federal Government will collect BRL 12 billion ($2.448 billion) until 2026. According to the Games Magazine Brasil website, the amounts generated by this market are also expected to boost tourism.

This is because 28% (about BRL 3.3 billion/$673 million) of the taxes collected will go to the tourism sector, with the following distribution:

• 22.40% to the Ministry of Tourism
• 5.60% to the Brazilian Agency for International Tourism Promotion (Embratur)

Edson Pinto, Executive Director of Fhoresp, views the figures with optimism. "This boost goes much further because it will generate more jobs not only in the accommodation and catering sectors but also in other productive segments. We are talking about a market that involves musicians, artists, and infrastructure and transport professionals, as well as the trade and services sectors, which will also benefit," Pinto analyzed, according to Games Magazine Brasil.

Fhoresp and IDT-CEMA also take into account the possibility of tourist establishments signing merchandising agreements with gaming companies and becoming points of sale. It is important to remember that estimates of revenue, turnover, and distribution of funds may vary depending on the organization in charge of the calculations and also on the market situation.