Brazilian gamblers spend about $11.1B on online gambling in 2023

Between January and November 2023, Brazilians spent about $11.1 billion on online gambling and betting. The data comes from a report by the Folha de S. Paulo newspaper, which is running a series of special articles on gambling and has based them on Central Bank statistics on remittances sent to companies abroad.

By way of comparison, the amount spent on gambling is higher than that of Brazilian beef exports, whose sales amounted to USD 9.5 billion in 2023, according to the Secretariat of Foreign Trade.

The Folha de S. Paulo report also explains that, of the total BRL 54 billion ($10,938,780,000), about BRL 43.3 billion ($8,771,281,000) correspond to amounts that make up the amount that is distributed among the winners, i.e. the amount bet by users. Another BRL 10.7 billion ($2,167,499,000) corresponds to the service fee of the betting sites.

Another interesting point presented by the report is that last year BRL 34.5 billion ($6,988,665,000) of the funds returned to Brazil. The money refers to prizes paid to gamblers residing in Brazilian territory.

As of this year, the amounts spent on betting platforms could be even higher. Throughout 2023, the sector operated without regulation (the gambling law was only sanctioned in the last days of December).

The new legislation provides for a tax rate of 12% for companies on Gross Gaming Revenues (IBG) and 15% for bettors (percentage calculated on winnings). It also establishes a series of rules and obligations for companies, such as the requirement that at least one Brazilian partner hold a minimum of 20% of the company's capital stock.