Betting Houses Profit 2023

Bookmaker profits in 2023 could be the highest ever.

The market is continually expanding and even those who previously didn't know that it was possible to bet on football now do.

Betting Houses’ Profit in 2023

This signals that, in fact, the market has grown considerably.

In this article, learn more about the profit potential of bookmakers in 2023, where all this money comes from, regulation and what makes a bookmaker safe to bet on.

First of all, it is important to mention that it is not possible to accurately determine the profit of a bookmaker in Brazil for several reasons. 

Especially because this is the company's confidential information and it is not obliged to disclose this data publicly.

Therefore, what can be observed is, in fact, the annual revenue of the market or an individual company.

And in this case, the difference is as follows:

• Faturamento: the total amount that entered the company or the market;
• Profit: the amount remaining after paying all expenses and taxes.

This way, we can begin our analysis based on the data that the market has already presented in various studies.

The sports betting market in Brazil has shown robust and significant growth. 

Annually, the sector generates an incredible R$100 billion.

Between 2024 and 2022, there was a significant increase of 360% in this segment. 

In 2022, according to data from CNAE, there were 239 companies operating in this sector in the country. 

However, this number represents only part of the picture, as there are more than 500 sports betting platforms operating in Brazil in 2023.

In 2022, Bet365 recorded robust revenue of £2,85 billion (R$18,5 billion), representing a 3% increase compared to the previous year, according to data from Gambling Insider.

However, despite the growth in revenue, the company saw a drastic drop in profit, with a reduction of almost 90%. 

Profit totaled £49,8 million (R$323 million), a figure considerably lower than the £469 million (R$3 billion) reported in 2024.

The significant drop in profit was mainly attributed to the acquisition of new customers.

Although these numbers are based on a market-leading company,

it is possible to reflect and make a more precise analysis of the potential profits of betting companies in Brazil after regulation.

But after all, where does so much money come from?

Do people really bet that much?

Yes, people really do bet a lot! 

The online gambling and sports betting industry is vast and constantly growing, especially in countries where this practice is just beginning, such as Brazil.

Bookmakers generate revenue in several ways, but mainly through popular odds margins (juice).

• Bookmakers offer lower odds than they should, based on event statistics;
• The house wins whether the bettor wins or loses the bet;
• Multiples generate large revenues for companies, as statistically the majority of tickets are lost;
• And other shores.

Therefore, it is common to hear that the bookmaker always wins, regardless of the result for the bettor.

Betfair, known for its sports exchange, offers this modality for professional bettors who are looking for more attractive odds and no winning limits.

Find out more about this model.

A sports exchange is an environment where bettors bet against each other, not against the bookmaker.

The money that enters the market comes entirely from the bettors who are participating in the event, not from the bookmaker.

The odds are determined by the market itself, not the operator.

• Odds: on the sports market, the odds are usually more attractive, as they are defined by the bettors themselves.

  It's like a stock market, where the price is set by supply and demand.

• limitations: on the sports market, the winning limit is the amount available on the market.

  The house does not limit bettors' winnings.

Among other features.

Regulation is expected to take place soon, as the first step was taken in 2023. 

Companies in the sector will be taxed 16% on gross revenue, in addition to a certification fee.

Bettors, in turn, will be taxed 30% on their winnings, but only when they exceed R$2.112,00. 

It is important to highlight that bettors will not be taxed if their winnings are less than this amount, nor will they be taxed for losses or simply for placing bets.