In Brazil, winnings obtained from fixed-odds betting and fantasy sports are subject to Income Tax, as indicated by the Federal Revenue Service (Receita Federal). The tax applies only to net annual winnings, which is calculated by subtracting the total amount wagered from the total amount received. According to the rules, only amounts that exceed the exemption limit of R$ 28,467.20 are taxable at a rate of 15%.

To ensure compliance, bettors must provide documentation of their winnings through ComprovaBet, a record that betting platforms are required to furnish, summarizing the previous year's performance. In cases where a tax amount is due, the Receita Federal has introduced provisions to allow taxpayers to pay in installments, with a maximum repayment period of 60 months and a minimum monthly payment of R$ 200. This initiative aims to alleviate the financial burden for taxpayers unable to settle the tax in a lump sum.

Renata Ferrarezi, a tax lawyer and Income Tax consultant, emphasizes that this taxation approach is innovative, as it reflects the growing popularity and economic impact of betting activities within Brazil. This regulation not only underscores the government's effort to regulate this area of gambling but also enhances public revenue through taxation, thereby recognizing betting as a legitimate source of income that warrants oversight and regulation.