The future of iGaming in Brazil

On January 1 2025, Brazil officially opened its regulated sports betting and online gaming market with the enforcement of Law 14,790/2023. The creation of the Secretariat of Prizes and Betting (SPA), under the Ministry of Finance, marked a decisive step toward professionalizing a sector that had already been generating billions informally. The first six months have confirmed the enormous potential of this industry, while also exposing the challenges that must be addressed to ensure its long-term sustainability and credibility. 

The numbers speak for themselves. By May 2025, the Government had issued 79 operating licenses, covering 177 authorized brands. Licensing fees alone brought in approximately BR2.2bn ($180m), with each license priced at BR30m. In the same period, federal tax revenue reached BR3.8bn, based on a 12% rate applied to gross gaming revenue (GGR) – the difference between total wagers and total payouts. By year-end, the Government expects sector taxation to generate between BR8bn and BR12bn, making Brazil one of the most promising iGaming markets in the world. 

For licensed operators, regulation has ushered in a new standard of compliance. On our platforms, for example, we have implemented rigorous identity verification, transaction monitoring and anti-money laundering protocols. Self-exclusion tools, voluntary spending limits and activity alerts form part of our responsible gaming strategy – underscoring that true growth can only be sustained if player protection remains a top priority. 

Yet critical challenges persist. Unlicensed – and outright illegal – operators continue to target Brazilian players, making robust enforcement and effective blocking of unauthorized websites and transactions essential. Furthermore, the proposed increase in the tax rate to 18% in October has created uncertainty among investors, tightened operating margins and even prompted speculation that some licensed operators might surrender their permits due to financial strain. 

Brazil stands at a historic turning point for iGaming. Regulation has laid the foundation for a robust industry – one capable of generating significant revenue for the country while offering a secure, transparent gaming environment. The next step is to ensure regulatory stability, strengthen responsible gambling measures, and maintain open dialogue between industry stakeholders and the government to keep this ecosystem evolving. If these priorities are met, Brazil has the potential to become a global benchmark for innovation, integrity and sustainability in the betting sector. 

Alex Rivera

Writer

My goal is to explain how gaming, esports, and betting intersect in ways that readers can actually understand, without stripping away the entertainment that makes the space compelling.

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