Brazil’s long-running love affair with sport, risk and reward has entered a new phase. On January 1 2025, the country’s long-anticipated iGaming regulation finally took effect, transforming a patchy, semi-legal landscape into one of the most promising licensed markets in the world.
With a massive population, widespread mobile use, and a fierce appetite for football and online casino gaming, Brazil is now firmly on the radar of global operators. But the road to success is no free ride. Between the licensing hoops and the security red tape, Brazil’s system doesn’t mess about. It expects discipline, full transparency and a good dose of local know-how.
The latest SOFTSWISS report on Brazil’s iGaming market offers a detailed roadmap, laying out licensing requirements, compliance expectations, player preferences and emerging risks. And with over USD 3.5 billion (£2.76bn / €3.24bn) in monthly bets already in play, the opportunity is huge, but only for those who play by the rules.
At the heart of Brazil’s new iGaming landscape lies a robust legal framework built on two major laws: Law No. 13.756/2018, which introduced fixed-odds betting, and Law No. 14.790/2023, which extended regulation to online casino games and virtual sports.
The Secretariat of Prizes and Bets (SPA/MF) now oversees all operators, requiring them to obtain licenses. The cost? A cool BRL 30 million (USD 5.18 million / £4.08 million / €4.79 million) for a five-year, non-transferable licence, permitting the operator to run up to three distinct iGaming brands under one approval. A minimum reserve of BRL 5 million (around USD 863,000 / £680,000 / €765,000) must also be held to ensure operational stability.
Operators must meet strict eligibility standards. They need to establish a base in Brazil, partner through a joint venture, or ensure at least 20 percent local ownership. Foreign firms also have the option to enter via mergers and acquisitions. The Parliamentary Inquiry Commission (CPI) on Match-Fixing and Sports Betting in the Federal Senate concluded its work on March 19, calling for indictments and stricter rules for Brazilian football.
A 12 percent GGR tax is in place, with the proceeds backing public priorities like schools, hospitals and beyond. Meanwhile, players pay a 15 percent tax on net winnings above BRL 2,112 (approx. USD 364 / £287 / €323).
But failure to comply comes at a steep price. Fines of up to BRL 2 billion (approx. USD 345.4 million / £272 million / €304 million), licence revocation, and bans from future licensing rounds are all on the table. In late 2024, Brazilian regulators blocked over 2,000 illegal betting sites, showing that enforcement will be swift and unforgiving.
Brazil suffered over 240 ransomware attacks in 2024, with the iGaming sector experiencing a 146 percent rise in incidents. Nearly a quarter of iGaming firms were affected.
To combat this, the new regulations mandate industry-grade security practices. Operators must use the exclusive “.bet.br” domain, store data in-country (or meet strict international standards), and implement multi-factor authentication, penetration testing, and firewall protection. Even third-party service providers must meet the same benchmarks.
Brazil’s market requires more than just translation. Platforms must offer full Brazilian Portuguese support, not European, and provide 24/7 assistance via electronic and phone channels. More than a legal formality, this is about showing respect in a country where gambling hasn’t always had the best reputation.
As Brazil’s gaming sector embarks on a new era, H.E. Ambassador John Aquilina, Ambassador of Malta to Brazil, shares his insights on Brazil’s newly introduced gaming regulations and the positive industry response. With SiGMA Group’s BiS SiGMA Americas 2025 set to take place from April 7-10 in São Paulo, Ambassador Aquilina reflects on how the summit is cementing itself as a key fixture in the country’s commercial calendar.
With 97 percent smartphone penetration and 91 percent of the population living in metropolitan areas, Brazil is a mobile-first nation. Apps are particularly favoured due to perceived security and performance benefits.
The preferred payment method? PIX — Brazil’s instant, free transfer system, which has now reached full acceptance across major sites. Other popular options include debit and credit cards, Boleto (for the unbanked), and e-wallets like Pay4Fun. Although Brazil has a high rate of crypto adoption (nearly 17.5 percent), the government now strictly bans crypto payments in gambling.
All gambling-related transactions must now be processed exclusively through institutions authorised by Brazil’s Central Bank. No cash, crypto, third-party accounts, or offshore transactions are allowed. This rule could catch out unprepared operators.
By 2029, experts predict Brazil’s online casino revenue could hit USD 3.7 billion (approx. £2.92 billion / €3.43 billion), with 2.25 million new players entering the market. Most players are middle-class, aged around 39, and typically spend less than BRL 50 (approx. USD 8.64 / £6.80 / €7.65) monthly on recreational play.
Casino preferences skew towards online roulette (78 percent), blackjack (66 percent), table games, slots, and live dealer experiences. Most gaming sessions last under 30 minutes — quick bursts of entertainment rather than marathon play.
On the sportsbook side, over 74 million Brazilians are already active bettors. Football is still king, but other sports, from esports to volleyball, are carving out space in the market.
The biggest motivator? Not glamour or jackpots. Rewards (59 percent), followed by enhancing the experience of watching sports (19 percent).
Brazilian players don’t stick to a single vertical. Most engage with at least four types of games, often switching between casino and sports betting within the same platform. Hybrid models that merge these experiences, such as live football bets integrated with instant win games, are already proving popular.
In late 2024, SENACON banned bonuses and promotions, the market’s favourite tool. Flashy promos, rewards and influencer hype are all off the table now — none of them can be used to attract players. Consumer protection is the priority now, and marketing must reflect that.
Brazil might be the new darling of the iGaming world, but it’s not all carnivals and cash. The risks are real, and there are plenty of pitfalls to be aware of. Regulatory tension between state and federal governments proposed sin taxes, and public scepticism pose risks. A 2024 survey found 65 percent of Brazilians support stricter regulation or outright restriction.
Add in high entry costs, strict financial controls, and a cultural stigma around “Jogos de azar” (games of chance), and it’s clear this isn’t a market for rookies.
Yet the reward could be immense for those with the expertise, resources and patience.
As the SOFTSWISS Brazil iGaming report concludes, local partnerships, technical precision, and player-first thinking will define the success stories in this space.
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