Brazil betting trends cause estimated net loss to public coffers

A study by economist and UFRJ professor Guilherme Klein suggests that online betting in Brazil is causing a significant net loss to public finances. While betting platforms have generated approximately R$ 9 billion in direct revenue for the Treasury, the reduction in broader economic activity due to decreased consumer spending is estimated to have caused a loss in tax revenue between R$ 31.1 billion and R$ 54.8 billion.

According to the study, the net effect on public coffers is estimated to be negative, ranging from R$ 22 billion to R$ 46 billion, as bettors divert funds away from other goods and services toward gambling. In response to the rise of gambling addiction, the Brazilian government has established a direct channel within the Unified Health System (SUS) to provide treatment for ludopaths.