Brazil and Gambling

The first year of regulated online gambling and betting in Brazil ended with notable successes, but also revealed serious difficulties in the practical implementation of the rules. Regulation officially began on January 1, 2025, after years of uncertainty, and by the end of the year, the number of licensed operators had grown from 14 to more than 80 companies with federal permits, reflecting high interest from the market and investors.

The economic results are impressive: in 2025, the regulated sector earned gross gaming revenue (GGR) of approximately R$37 billion (about $7 billion), with bookmakers paying about R$9.9 billion in taxes, confirming that the legal structure generates significant fiscal flows.

However, the transition from legislation to implementation proved to be no less challenging. The regulator, the Secretaria de Prêmios e Apostas (SPA) under the Ministry of Finance, faced a huge workload: it is necessary to monitor millions of active players, block access to unlicensed sites (the SPA has already blocked tens of thousands of domains), and control financial flows, including combating offshore operators that still attract Brazilian players.

Experts note that although the new rules have created legal certainty, real control tools and automation have not yet reached maturity: difficulties with KYC/AML, uneven application of advertising restrictions, and the lack of standardized reporting systems complicate the work of operators and regulators.

Tax policy may exert additional pressure: the initial tax of 12% of GGR is planned to be gradually increased to 15% by 2028, and the proposed CIDE-Bets amendment with an additional 15% tax on player deposits could seriously weaken market drainage, pushing players back to illegal platforms.

According to analysts, the key to the long-term success of the Brazilian market lies not only in the text of the law, but also in the development of the regulator's institutional infrastructure: improved monitoring technologies, clear sanction mechanisms, and balanced advertising rules that protect consumers without limiting the visibility of licensed operators.

Overall, Brazil's experience shows that regulating a large digital iGaming market is possible and attractive for investment, but its effectiveness depends on the state's ability to provide adequate enforcement mechanisms and adapt to market challenges.

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