Insights into the Brazilian Gambling Market
The Brazilian gambling market refers to the broadly defined online gambling and sports betting industry operating under government regulation. The program has implemented strict licensing and monitoring mechanisms aimed at creating transparency, ensuring consumer protection, and providing economic benefits.
The path to online gambling regulation began with legislation and was ultimately announced to be completed by the Ministry of Finance in 2024. The licensing process was successfully completed on December 30, 2024, preparing for full operations in 2025.
Licensing Process and Key Statistics
The Secretariat of Awards and Gambling (SPA) played a key role in this process, ensuring the entire licensing procedure met strict standards. The review process included four stages: ensuring robust IT security protocols to protect user data, promoting safe and efficient payment processing, strictly adhering to Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) regulations to prevent money laundering or terrorist financing, and promoting ethical gambling practices through responsible measures.
Since the end of the licensing application period in September 2024, a total of 145 companies have submitted 150 license applications, with 68 companies obtaining full licenses and paying a franchise fee of 5 million euros, along with over 380 million euros in initial total fees. These figures demonstrate the market's viability.
Global giants such as Betfair, bet365, Stake.com, and brands under Entain Plc (Betboo, SportingBet) have already entered the market, indicating international confidence in the Brazilian framework. Several local operators are also preparing to compete, reflecting the growth of local industry expertise.
The document signed by SPA Chairman Regis Dudena took effect on December 30, 2024. Dudena stated: "From January 1, 2025, all companies operating in Brazil must be Brazilian entities established according to Brazilian law. We will understand their shareholders, ultimate beneficiaries, and executives, ensuring full supervision of all relevant legal entities and individuals."
Impact on the Brazilian Gambling Market
Operators need to register through the Financial Activities Control System (Siscoaf) to utilize fast payment processing and valuable registration chains, while adhering to strict anti-money laundering and counter-terrorism financing measures, thereby reducing risks. This ensures compliance with the country's financial laws, further supporting the market's legality.
So far, the government has generated millions in revenue through initial licenses, and it is expected to gain more through ongoing taxation. The regulated market is expected to create thousands of jobs and revitalize multiple sub-industries such as technology, media, and advertising.
View the list of listed companies:
