Betting in Brazil: A modern-day gambling gold rush

Once known for having some of the strictest nationwide gambling prohibitions, Brazil’s transformation into one of the fastest-growing gambling industries on the planet has been remarkable.

Having only allowed horse racing and a select few lotteries before, Brazil has now opened its doors to licensed sports betting platforms and iGaming operators.

With legislation currently progressing that could soon also see in-person casinos and eSports betting in the land of samba, ESI takes a closer look at Brazil’s blossoming billion-dollar gambling sectors.

Considering Brazil has lifted soccer’s World Cup an unprecedented five times, the first of which was in 1958, it may surprise you that sports betting there only became legal in 2018. Still, its initial rollout of fixed-odds sports betting lacked the necessary regulatory framework, which led to the sector being blighted by illegal, untaxed offshore sportsbooks.

It wasn’t until December 2023 when Brazil finally passed a fully-fledged sports betting bill – Law No. 14,790 – before more suitable regulations were imposed. Designed to crack down on unlawful sports betting platforms, Brazil’s ‘Law of Bets’ introduction included better player protections while also implementing regulated advertising and anti-money laundering measures.

However, it took until January 1, 2025, for Brazil to finally launch its fully regulated online gambling market. This opened the door for the Secretariat of Prizes and Bets (SPA) to award international and domestic online sportsbook platforms a license to operate in what could potentially be one of the world’s largest sports betting markets.

Famous for its Jogo do Bicho lottery game, Brazil has an unquestionable thirst for gaming. But, while iGaming had exploded in Europe, Asia, and a number of US states, Brazilian lawmakers took their time before unveiling their online gaming regulations.

Nevertheless, when the structured iGaming framework came into effect on January 1, 2025, the sector was inundated by gaming firms keen to obtain a Brazilian license. In addition to this, the SPA had learned from the mistakes made elsewhere to ensure its sizable tax revenues were directed to much-needed public causes.

Nowadays, over 100 million Brazilians can enjoy a host of online casino games, poker rooms, and slots online. The sheer size of its population, along with its love of gaming, could see Brazil position itself as the leading force in the Latin American sector, ahead of other already established markets.

While sports betting and iGaming have taken off, in-person casino venues are still technically illegal. But Brazilians might not have to wait much longer as a series of new legislations are currently being debated, with high-profile backers, including the Minister for Tourism, pushing for the measures to be approved.

No doubt, advocates for the bill will be pointing to the popularity of iGaming and the sizeable tax revenues it is raising to help push legislation through. And, should retail casino venues clear the final hurdle in the Senate, it is believed President Lula is in favor and is prepared to also sign it into law.

Not only would physical casino venues drastically reshape the Brazilian tourism market, but they would also entice a new wave of both international and domestic visitors to its cities. It will likely lead to further international investment as Brazil looks to develop a map of resort-style casinos in its major cities, similar to Las Vegas or Macau.

Despite the speed of the country’s latest gambling regulations expansion, the SPA has purposely chosen to continue to prioritize Brazilian consumer protections. In tandem with this, it applied tough enforcement measures against licensing infringements and fraud.

As the SPA pioneers its self-exclusion initiative to protect against problem gambling, it has also sought to limit gambling advertising and sports team sponsorship deals. Meanwhile, the taxes and licensing fees collected from the nation’s gambling revenues are expected to raise billions for the public purse.

Brazil has clearly learned from the errors of gambling legislation errors made in other marketplaces. As a result of this cautious and steady approach, Brazilian lawmakers are determined to continue harnessing the industry’s potential for both social and economic gain.

So, what does the future hold for the Brazilian gambling sector?

With the prospect of in-person casinos on the horizon, perhaps it won’t be long before eSports betting gets the green light, too. Esports is huge in Brazil and boasts the legendary team FURIA and superstar Erick ‘aspas’ Santos. There is a ready-made fanbase who will undoubtedly want to back their fellow compatriots in the sport and wager their money on it.