Brazil’s Betting Landscape: Insights and Regulatory Considerations
The Secretariat of Prizes and Bets (SPA) plans to consistently release performance data, with its leader, Regis Dudena, emphasizing the importance of these insights to inform future regulations.
In the first half of the year, Brazil’s legal betting and iGaming market hit a remarkable BRL17.4 billion (approximately $3.2 billion), according to new statistics from the SPA. This surge aimed to flourish after the market officially opened on January 1, following a rigorous licensing process for operators.
Key Metrics from H1
Initially released data reveals that 17.7 million Brazilians engaged with licensed betting operators in these first six months, where men represented around 71% of bettors compared to 29% for women. The most active demographic was bettors aged 31 to 40, accounting for nearly 28%, while younger groups (18-25 and 25-30) also showed active participation, each making up over 22% of the total.
Over 78 licensed operators facilitated these bets through 182 recognized brands, resulting in an impressive average monthly spend of BRL164 per active bettor.
In July, the Federal Revenue Service reported tax collections of BRL3.8 billion linked to gambling during this period, complemented by the SPA’s collection of BRL2.2 billion in licensing fees and BRL50 million in inspection fees.
The SPA’s intention to frequently disclose market data aligns with its commitment to transparency, highlighting both state responsibilities and private sector roles. Regis Dudena stated, “Our objective is to periodically provide updates on the SPA’s activities and the evolution of the fixed-odds betting market in Brazil, fulfilling our governmental pledge to transparency.”
Regulation and Industry Sentiments
While initial enthusiasm about the market’s regulated performance exists, it faces headwinds from impending regulatory changes. Proposed advertising restrictions have raised concerns among operators, with many warning that these measures might inadvertently bolster the black market. A potential increase in gambling taxes is also under congressional scrutiny.
Industry stakeholders are advocating for the utilization of framework data to assess these regulatory impacts more thoroughly. Dudena highlighted the necessity of data-driven discussions, noting, “It provides concrete metrics for regulatory measures, allowing us to tackle surveillance and control issues realistically."
The Challenge of the Illegal Market
The SPA’s report also underscores significant efforts to combat illegal betting operations, a critical issue for licensed entities. Estimates suggest as much as 30% of the betting activities in Brazil still occur offshore. Since October 2024, the National Telecoms Agency has successfully removed over 15,000 illegal gambling sites, responding to the SPA’s directives.
Further actions included SPA inspections of 93 companies and subsequent sanctions for 35 cases, highlighting rigorous oversight. Additionally, 24 financial institutions flagged 277 suspicious transactions, leading to the closure of 255 bank accounts tied to offshore betting activities. The SPA also requested reviews from 13 payment processors, resulting in 45 additional account closures.
Progress continues in curtailing illegal gambling advertising, with numerous influencer pages and social media posts removed in response to regulatory measures.
The future of Brazil’s regulated betting market hinges on navigating these evolving regulatory landscapes while embracing transparency and data-driven decisions.