The betting market in Brazil is entering a new phase following the recent regulation of sports betting and other online gaming modalities. The enactment of Law No. 14.790/2023 and its respective ordinances, which will come into force in January 2025, will make Brazil one of the most profitable markets for international operators. The growth potential is significant, offering numerous opportunities for companies that choose to invest in the sector.
The following section will provide insight into the reasons behind Brazil's appeal as a market for betting companies, as well as the benefits of obtaining a licence to operate in the country for international merchants looking to expand their operations.
In recent years, Brazil has demonstrated significant potential for growth in the iGaming sector. The legalisation of sports betting in 2018 captured the interest of millions of Brazilians, driving rapid growth in the industry. A report by Strategy& indicates that the sports betting industry generated between R$ 60 billion and R$ 100 billion in 2023, representing a significant increase from the R$ 5 billion recorded in 2018.
The new regulation is expected to drive continuous growth in the market, which is projected to reach R$ 130 billion by 2024. Therefore, for global merchants looking to enter this market, the prospects are highly promising, as we will examine in the following sections.
Brazil is the most populous country in Latin America, with over 215 million people. This vast and diverse customer base represents a significant opportunity for regional businesses. The Strategy& study indicates that most bettors are male, young, and from the lower middle class, with 40% belonging to social classes D and E.
Brazil's first official lottery was established in 1784, during the colonial period. Over time, the regulatory framework underwent significant enhancements, particularly following the establishment of Caixa Econômica da Corte in 1861, which assumed responsibility for the administration of official draws. To this day, the activity is managed by the now-named Caixa Econômica Federal.
Another factor driving this entertainment niche is Brazil’s close relationship with football. It’s no surprise that most clubs in the Series A of the Brazilian Championship have an online betting company as their main sponsor.
For operators, the regulation of betting games in Brazil primarily offers enhanced legal certainty. As of January 2025, all companies will be required to hold a licence to operate legally in the country.
This legal advancement not only legitimises operations but also defines a regulated environment that provides consumers with greater transparency and security. Furthermore, the regulation introduces a 12% tax on Gross Gaming Revenue (GGR) and a 15% tax on players' winnings, which will contribute to a stable and predictable business environment.
The betting market in Brazil is experiencing rapid growth, as evidenced by the increasing numbers. In 2020, 51 companies were operating in the sector. It is anticipated that over 300 new companies will enter the market by 2025, generating an estimated revenue of US$ 548 million as a result of regulatory changes.
With the new regulation promoting legal security, the country is well-positioned to become one of the largest iGaming markets in the world. Statista Market Insights forecasts that the number of online bettors will reach 2.2 million by 2029.
For those seeking to expand their operations, it is crucial to seize the optimal opportunities. Obtain your licence and become part of the transformation of the Brazilian gaming market.
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