Crypto gambling in Brazil: What new rules mean for operators
Having gone official on 1 January 2025, Brazil’s journey into a regulated online betting market has reshaped the landscape for gambling with digital assets. It was once a popular method in the unregulated “grey market”, but crypto gambling in Brazil is now restricted, with the use of cryptocurrency for betting explicitly prohibited under the new legal framework.
Key points:
- Gambling with cryptocurrency is no longer available according to Normative Ordinance No 615/2024.
- H2GC pointed out that crypto gambling in Brazil accounts for only a minor share.
- The ban is part of the Brazilian government’s broader effort to create a structured and regulated gambling market.
Although the regulation closes the door on crypto payments, it also demonstrates Brazil’s dedication to fostering transparency and upholding market integrity. What does this complex and evolving situation mean for operators and players alike?
The status quo: Crypto transactions banned
Normative Ordinance No. 615/2024 states that operators must not accept payments in the form of cryptocurrency. The ban took effect alongside the launch of Brazil’s legal iGaming market. Operators can only accept payments via electronic transfer.
The Brazilian government is committed to establishing an era of safer online betting. With the ban on cryptocurrency in online betting transactions, the government aims to gain better control over financial flows.
Industry experts such as Dmitry Starostenkov note that crypto transactions provide less regulatory control than fiat payments despite being traceable. The ban is part of broader efforts to combat the black market in betting.
There is also concern that banning the use of crypto in betting could drive players back to unregulated offshore sites, while some might argue that an outright ban on crypto is more effective.
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Has cryptocurrency affected the Brazilian iGaming market?
Prior to legalisation, some operators in Brazil used cryptocurrencies for online gambling on offshore websites, facilitating peer-to-peer (P2P) transactions that circumvented local authorities’ verification.
Alongside Brazil’s high digital penetration, the lack of a regulated iGaming framework gave rise to crypto’s prominence. Crypto casinos quickly gained popularity in Brazil between the initial legalisation of sports betting in 2018 and the final framework, Law No 14,790, in December 2023.
However, as noted in Episode 14 of our podcast, “Right to the Source”, Ed Birkin from H2 Gambling Capital mentioned that crypto is not a significant part of the Brazilian gambling market. He reinforced it by stating that only 0.7% of transactions went through crypto.
Is crypto gambling in Brazil changing the industry?
Brazil appears to be moving toward a crypto-free market. The new regulatory framework has introduced targeted enforcement mechanisms against both illegal gambling and cryptocurrency use.
For example, the Central Bank now monitors crypto exchanges to flag suspicious payments linked to unlicensed platforms. Yet, some industry voices caution that the ban could drive players back toward offshore crypto sites.
Licensed operators, by contrast, are doubling down on localisation and strict KYC measures to build trust and channel players into the regulated ecosystem – a key goal outlined in Brazil’s new licensing framework. (See our Brazil gaming licence guide for details.)
Although the ban on online gambling with crypto marks a turning point in the industry’s operational and regulatory landscape, industry figures note this is not expected to set a global precedent in the near term.
In the same episode of the “Right to the Source” podcast, Birkin estimated the true size of the global crypto gambling market at roughly $3.5 billion based on actual crypto transactions, which is well below the often-cited $81.4 billion figure.
While crypto only makes up a small slice of gambling activity in Brazil, the government’s hard line reflects a broader effort to control financial flows and tighten control over the country’s illegal betting sector.