Brazil Gambling Industry Report

Overview of the Gambling Market – Brazil Gambling Industry Report

Brazil’s gambling market is entering a pivotal phase of expansion and modernization, powered by regulatory changes and an enduring national passion for sports. As of January 1st, 2025, the country officially launched its regulated iGaming market, marking a monumental shift in the industry landscape. While land-based casinos remain illegal, the online gambling sector—including sports betting, online casinos, and other iGaming formats—is now legal and licensed.

With a population exceeding 215 million and increasing digital access, Brazil represents one of the largest and most promising untapped gambling markets globally.

Market Segmentation

By Type

• Sports Betting
  Football reigns supreme in Brazil, driving the sports betting segment with unmatched popularity. This sector also includes bets on basketball, MMA, and eSports, which are gaining ground among younger bettors.
• Online Casinos
  The recent legalization has enabled rapid growth of online casino platforms offering slots, blackjack, roulette, and live dealer games. The convenience and entertainment value have drawn a new wave of players.
• Lottery
  The lottery is deeply rooted in Brazilian society. Run by the state-owned Caixa Econômica Federal, it remains a trusted and well-established gambling option for citizens.
• Poker
  Poker has a unique status in Brazil. Despite previous bans on games of chance, poker has always been considered a game of skill, allowing it to flourish legally. The poker community remains small but passionate and well-organized.

Key Market Drivers

Economic Drivers

• Emerging Middle Class
  A rise in household income across Brazil’s urban centers is creating increased discretionary spending, fueling entertainment categories such as online gambling.
• High ARPU (Average Revenue Per User)
  Compared to other Latin American markets, Brazilian players demonstrate a higher ARPU, indicating a stronger propensity to spend and engage deeply with digital gaming products.
• Job Creation
  The expanding iGaming ecosystem is generating demand for skilled labor in areas such as tech development, marketing, compliance, and multilingual customer support.

Technological Drivers

• FinTech Ecosystem
  Brazil is a leader in digital payments across Latin America, with widespread usage of mobile wallets, instant payment systems like PIX, and digital banks—making deposits and withdrawals seamless for gamblers.
• Mobile and Internet Penetration
  With more than 85% of the population using smartphones and increasing broadband access in remote areas, the infrastructure is primed for iGaming adoption.
• Artificial Intelligence
  AI is transforming the user experience through personalized game recommendations, adaptive learning models, and responsible gambling alerts that detect risky behaviors in real time.

Regulatory Landscape

• Law No. 14,790/2023
  This law legalized and structured the regulated iGaming market in Brazil. It allows both domestic and international companies to apply for licenses to offer online sports betting and casino games, provided they meet stringent compliance conditions.
• Licensing and Compliance
  Operators must adhere to strict financial, technical, and security standards to qualify for licensing. These measures are designed to improve transparency, consumer protection, and AML/KYC protocols.
• Taxation
  • Operators: 12% tax on gross gaming revenue (GGR)
  • Players: 15% tax on net annual winnings
    The clear tax framework is expected to boost government confidence and operator stability while creating a lucrative revenue stream for Brazil’s federal budget.

Cultural Influence

Brazil’s relationship with gambling is historically rich and complex.

• Jogo do Bicho
  This underground “animal game” is a lottery-like numbers game with deep cultural ties and frequent references during Carnival and local festivities. Despite being illegal, it remains embedded in Brazilian culture and has shaped gambling behaviors.
• Colonial Legacy
  Card and dice games were introduced during colonial times and have been socially embedded since. Today, informal games still take place in community gatherings, bridging generations and maintaining social relevance.

Key Players

Domestic

As Brazil’s regulated market is still in its infancy, major domestic operators are still emerging. Over time, local companies are expected to scale through strategic partnerships with international operators and by leveraging regional brand recognition.

International

• Betano
  A Greek-based operator that is now a market leader in Brazil, offering sports betting and casino games tailored to local interests.
• Sportingbet
  Operated under Entain plc, this British platform has built strong presence through sponsorships and market-specific promotions.
• EstrelaBet
  Although headquartered in Curaçao, EstrelaBet has deeply invested in Brazil through marketing, local partnerships, and regional sports sponsorships.

Future Outlook

• 2025 Revenue Forecast: USD 2.39 billion
  The Brazilian market is on track to become the largest regulated iGaming market in Latin America.
• Tax Revenue Potential: USD 3.5 billion (projected by end of 2025)
  With the current tax structure, Brazil’s government expects to gain substantial fiscal benefits, fueling reinvestment into public services and regulation.
• Long-Term Growth
  Brazil’s market is expected to expand significantly through increased competition, user education, mobile-first innovations, and growing public trust in licensed platforms.
• Key Areas to Watch
  • Possible future legalization of land-based casinos
  • Expansion of local game studios and tech providers
  • Entry of major U.S. and European operators
  • Evolution of responsible gambling tools and local advocacy groups