Key Moments:
- Regulus Partners identified illegal betting as controlling at least 40% of Brazil’s online gambling market
- The country launched a formal regulatory framework for the sector in January, with 79 licensed companies currently operating 184 platforms
- Federal tax revenue from betting reached R$7.95 billion by October, with total public revenue projected to rise further as tax rates increase
Transformative Market Growth and Job Creation
Brazil’s online betting sector has climbed into the world’s top five by turnover, following only the United States, the UK, Italy, and Russia, according to research by Regulus Partners. The industry’s swift ascent has resulted in significant gains for the national economy, including a boost to government income, substantial sponsorship deals for football clubs, and the creation of 10,000 direct jobs and 5,500 indirect roles. Enhanced player protections have also been established.
Despite these advances, illegal betting platforms remain a significant issue, still representing a minimum of 40% of the Brazilian market.
Regulatory Advances and Public Health Initiatives
The legalization of online betting occurred in 2018, but only minimal oversight existed until 2023 when comprehensive regulations took effect. These new rules introduced clear requirements for licensing, supervision, and taxation. The Secretariat of Prizes and Betting (SPA), under the Ministry of Finance, finalized this regulatory scheme in 2024, which became effective in January.
Today, 79 licensed entities operate 184 online betting platforms for 27.5 million users in Brazil. Men account for 67.8% of bettors, with the 31 to 40 age group comprising 28.6% of all users. For 2025, Gross Gaming Revenue (GGR) reached R$32.2 billion, illustrating the sector’s considerable size.
Public health concerns have also emerged alongside industry growth. The government established Observatório Saúde Brasil de Apostas Eletrônicas to monitor and support individuals facing gambling addiction, aiming to align prevention and treatment efforts with market expansion.
Tax Revenue and Market Concerns
By October, federal tax collections stemming from betting activity totaled R$7.95 billion, which includes R$3.3 billion from mandatory GGR allocations in addition to licensing and supervisory fees. Projections from LCA Consultoria and Cruz Consulting, when municipal tax revenue is included, estimate total government revenue at around R$9 billion. Tax legislation passed in December will incrementally raise the GGR tax rate to 15% by 2028.
However, some industry representatives caution that raising taxes might drive users to illegal sites. Plínio Lemos Jorge, president of ANJL, noted: “If my bread is more expensive because everything is done legally, the consumer will cross the street and buy from my competitor, even if the product is worse.”
Finance Minister Fernando Haddad defended government policy, stating: “Activities that generate negative externalities need to be more heavily taxed“, and compared the taxation of gambling with that of cigarettes and alcohol. “I need to fund health services to address lung cancer, alcoholism, and psychological dependence on gambling.”
Combating Illicit Gambling Operations
Studies suggest that reducing illegal betting by only five percentage points could generate between R$870 million and R$1.1 billion in new annual tax revenue. Authorities currently use several enforcement measures, including blocking illegal websites, tracing financial transactions, and eliminating illegal internet advertisements.
SPA data from an eleven-month period show the agency opened 93 supervisory investigations involving 112 betting sites. Financial entities reported 801 suspicious transactions, which led to 483 account closures, with some cases under ongoing investigation. Working with Brazil’s telecommunications authority, the government has shut down about 25,000 unlawful websites since late 2024, as well as 2,689 influencer profiles and 210 posts supporting illegal gambling.
Experts highlight that illegal platforms frequently re-emerge with new domains and indicate that coordination between institutions needs improvement. The Federal Audit Court (TCU) described the regulatory structure as “robust and aligned with best practices“, while also citing issues with staffing and the consistency of compliance processes.
Implementing Stronger Protections and Looking Forward
To address ongoing risks, new regulations now require facial biometric verification of users, prohibit payments via credit card, cash, or cryptocurrency, restrict sign-up bonuses, and mandate monitoring of user activity for signs of gambling addiction. A voluntary self-exclusion tool has also been launched through the government’s Responsible Gaming program.
SPA has stated that further regulatory adjustments are expected in early 2026. The ongoing challenge for the sector is to expand the legal market, eliminate illegal operations, and ensure consumer protection while maintaining financial sustainability.
Brazil Online Betting Market Overview
| Metric | Value |
|---|---|
| Number of Licensed Companies | 79 |
| Number of Betting Platforms | 184 |
| User Base | 27.5 million |
| Gross Gaming Revenue (2025) | R$32.2 billion |
| Federal Tax Revenue by October | R$7.95 billion |
| Illegal Market Share | At least 40% |
- Author
Daniel Williams
