A dominant global force in gaming, the operator has become market leader in the US through its FanDuel brand and has expressed similar lofty ambitions in Latin America.   

In September 2024, Flutter acquired a 56% stake in NSX, the parent company of Brazil-facing brand Betnacional. That same month, the company insisted the deal boosted its market share to 11%. NSX provided the operator with a wealth of local talent and experience.

The deal was completed in May, when NSX CEO Joao Studart stepped into the top job at the newly formed Flutter Brazil.

The agreement mirrored Flutter’s strategy across Europe and the US, combining local brand strength and the group’s financial and technology firepower and global structure. For Studart, the deal made perfect sense and marked a new chapter for the Brazil sports betting market.  

“Flutter saw in Brazil not only an opportunity for strategic expansion, but also a market with real prominence within the global sector,” Studart tells iGB. “It recognised in Betnacional a successful example of genuine connection with Brazilian fans – a popular, culturally rooted and fast-growing brand.” 

M&A specialist Christian Tirabassi, founder and senior partner of Ficom Leisure, believes Betnacional was a top-10 player in Brazil’s pre-regulated market.

Acquiring a local hero of this size meant Flutter could achieve an early-mover advantage, a key benefit in such a highly competitive market.

“The opening of other markets has shown us that whoever is early into the market has an important market share and will probably stay there or even increase that leading position,” Tirabassi says. 

Local prowess 

Stakeholders have noted just how important localisation is to succeed in Brazil, which differs culturally from its LatAm neighbours even beyond the language distinctions.

Pre-regulation, many shared the belief that international entrants could struggle in Brazil unless they properly localised through a boots-on-the-ground approach that differs vastly from their other markets. 

Studart believes Flutter Brazil combines NSX and Betnacional’s local prowess and the Flutter Edge technology stack, bringing scale and local autonomy.

“Flutter Brazil [is] an operation that remains Brazilian at its core, with local leadership and a deep understanding of the consumer,” Studart explains. “At the same time, it operates with the resources, governance and technology of a global group. 

“Through the Flutter Edge, we brought to Brazil state-of-the-art tools, a robust infrastructure, high-level compliance standards and a responsible gaming programme tailored to the country’s reality.

“At the same time, we preserved Betnacional’s essence as a local hero – a brand that represents the Brazilian spirit of football, entertainment and popular culture.”

Brazil’s launch has dominated gaming news in the last couple of years. A huge nation with a population of around 213 million, Brazil has a vibrant sporting culture, and many expected its opening to provide an entry into LatAm’s growing gambling opportunity.  

H2 Gambling Capital ranks Betano, Superbet and Bet365 as its top three players by market share, according to its revenue estimates. International entrants are clearly gaining a strong foothold in the market.

Since the launch, operator revenue figures for Brazil have varied. In Q1 most listed players reported strong numbers as early entrants, but as competition has increased, and KYC pressures remain, some have seen that growth slow slightly.  

In Q3 London-listed Entain warned that iGaming was not performing as well as it could be, due to a slow and arduous certification process, which meant few games were available in the market during the period. Flutter reported revenue of $87 million in Brazil in Q3, marking a 412% uptick on the same period in 2024, prior to regulation.  

Of course, this year the company has included NSX’s revenues within its mix, with Betnacional reportedly achieving record iGaming revenues during the quarter. Excluding NSX’s revenue, Flutter saw a 18% year-on-year revenue drop across its Betfair brand in Brazil.

Group CEO Peter Jackson said this was due to its continued recovery from bottlenecks that occurred during and following the regulatory process.

Ed Birkin, H2 Gambling Capital managing director, estimates Flutter Brazil is currently sitting in fifth position in the market with a 4.5% market share. 

“While it’s still very competitive at the moment, I would imagine Flutter’s strategy will be focused on getting the best product [out],” Birkin explains. “And then as other people start to pull back, which is going to happen at some point because the losses that I’d imagine a lot of companies are making aren’t sustainable, that’s when they will start to leverage their financial firepower, start to lean in as they call it and pick up the slack.” 

A slice of the pie 

The Flutter Edge platform is the core function powering the operator’s “local heroes” strategy, through which it has acquired numerous leading brands in various markets and integrated them into the central platform.

Analysts are bullish on the power of the Edge platform. In December 2024 Macquarie senior gaming analyst Chad Beynon estimated the platform would help Flutter gain up to 25% market share in Brazil by 2030.  

In his December note Beynon said the platform had proven to affect market share gains in new markets quickly. He also said further M&A was on the cards for Flutter in LatAm.  

“Flutter Edge brings to Brazil state-of-the-art resources in infrastructure, data intelligence, innovation and compliance – ensuring that our brands operate with robustness, speed and security,” Studart says. “At the same time, we have the freedom to adapt products, experiences and strategies to local realities, delivering tailored solutions that truly connect with our audience.  

“It is precisely this combination of global structure and local leadership that positions Flutter Brazil among the most prepared companies to lead the sector – with consistency, credibility and a positive impact on the entire ecosystem.” 

Birkin expects Flutter will invest heavily in marketing further down the line, as competition slows and others pull back from the market. This will enable it to capitalise on waning competition, a strategy that worked for Flutter in stunning fashion in the US. 

“My view is the best strategy would be to focus on integrating their very strong technology and know-how into the Betnacional business to improve the product,” Birkin says. “Once they’ve got the product where they want it, then to spend their money on marketing as others pull back on it. 

“What you’d notice in the US is that as people started pulling back on bonusing and marketing, as lots of operators were loss-making, they pull back, then FanDuel starts to lean in and kind of use their scale to take customers.”

Birkin notes Bet365 employed a similar strategy in the US, where the operator avoided spending huge amounts to gain brand awareness. Instead, it operated efficiently in the background, waiting to make market share gains when others pulled back. 

The sheer scale of Flutter Brazil compared to smaller operators is demonstrated by its massive local workforce of over 500. The business operates multiple functions locally, including technology, marketing and customer services. The company also recently changed its corporate structure, with a raft of new C-level appointments to work alongside Studart. 

Flutter Brazil has drawn from other sectors to build out its executive team, while also ensuring a combination of international expertise with a “deep cultural connection” to Brazil.

“The IT team is a great example of this integration, with professionals from Flutter’s international structure working remotely in collaboration with the local team, expanding our capacity for innovation and integration,” Studart adds. 

“The new executives bring extensive experience in their fields, foster local reach and lead highly qualified teams that are already recognised as industry benchmarks, always operating with responsibility and a long-term vision. With Betnacional as part of its brand ecosystem, the goal is to sustain an operation centred on Brazilian talent and local insight.” 

Further M&A 

Tirabassi shares Benyon’s view that Flutter will make other acquisitions in LatAm, in part due to their strong history of successful M&A across its global portfolio and with the company’s sights set on reaching the summit of the regulated Brazil sector.

“Their objective, clearly, is to become number one, and that’s why I think they’re going to make other acquisitions,” Tirabassi says. “Large ones that would allow them to be quickly number one or number two, so something of the same size or similar size. I think that Flutter is actively looking for an [M&A] target. I know that for sure.” 

But Tirabassi knows well that this process isn’t easy.

“We believe the issue [in Brazil] is finding a target which is ready to transact,” Tirabassi adds. “Being on the sell side, the majority of the work we do is prepare the target, because they’re not ready. We understand the priority is business. But then again, very big business, very small corporate. So that’s why we’re trying to kind of help them to realign the size of the corporate together with the size of the business.  

“They need at least a couple of quarters to organise the company. So, we expect that in 2026 you will see some additional M&A in the market, because targets will be in a better position than now to engage in a transaction with a company like Flutter.” 

With Birkin currently ranking Flutter Brazil and its Betnacional and Betfair brands at number five in the market, he has reservations over whether they can scramble to the top spot. H2’s numbers give Betano, Superbet and Bet365 a combined 47% of the market, and Birkin feels that could be a tough trio to crack for Flutter. 

“They want to be in a podium position,” Birkin explains. “On our numbers that would involve them overtaking Sportingbet and Superbet. Is that possible? Yes. Do I see them being able to capture in a year, five years, Betano and Bet365? That would involve a significant change in market structure.” 

Tirabassi, however, is a little more confident and believes in the value of the NSX acquisition. Add to that Flutter’s capability to conduct more M&A, and Flutter could certainly buy its way to the top.  

“I think the difference is that culturally, the Flutter group has been extremely capable in M&A, they have a very strong team and also the guys that come after the deal. Betano has basically no experience in M&A or very little so it’s not really their culture.” 

Ultimately, Studart is confident Flutter Brazil will continue to make strides in the new and exciting Brazil market.

“The Brazilian market is going through a phase of consolidation that brings great opportunities for operators who invest with seriousness, a consumer-first mindset and a commitment to best practices,” Studart concludes.  

“The progress of regulation has laid the foundation for a more balanced ecosystem – one that combines innovation with responsibility. Flutter Brazil sees this new scenario as fertile ground for sustainable growth. By combining global scale with a deep understanding of local specificities, we aim to actively contribute to the sector’s maturation – offering relevant and safe experiences to users while reinforcing the pillars of trust, transparency and Brazilian culture that underpin our brands.” 

As part of Brazil’s Ministry of Finance, the Secretariat of Prizes and Bets (SPA) is taking a proactive role in shaping Brazil gambling regulations and establishing clear standards for a transparent industry.

Key points:

• The legalisation of Brazil’s iGaming market includes stricter online gambling regulations. 
• There are three major focuses for operators, namely anti-money laundering (AML), counter-terrorism financing (CTF) and the prevention of the proliferation of weapons of mass destruction.
• The SPA has outlined a set of robust AML and KYC requirements to verify player identity and ensure compliance with relevant regulations.
• Data centres and servers now have specific requirements to keep them secure and compliant with Brazilian gambling regulations.

For betting operators, the message is loud and clear. You need to have strong systems in place to prevent financial crime. Brazil’s gambling regulator, the Secretariat of Prizes and Bets (SPA), is raising the bar on compliance. Betting operators must now have robust policies in place for three key aspects:

• Anti-Money Laundering (AML)
• Counter-Terrorism Financing (CTF)
• Preventing the proliferation of weapons of mass destruction (PLD/FTP). 

Compliance is about building a culture that runs through the entire organisation. These rules require you to assess the risk level of every customer when they register and how you apply the same checks to employees and suppliers. 

AML rules under Brazil’s federal online gambling licence

The SPA enforces AML and KYC obligations rooted in federal AML legislation and COAF standards. Through Ordinance No 1,143/2024, the SPA translates these national rules into sector-specific procedures that operators must implement as part of their licensing and oversight.

Licensed operators must follow a strict AML/CTF framework, which is established under federal law and COAF rules and enforced by the SPA through sector-specific ordinances, to prevent money laundering, terrorism financing and the proliferation of weapons of mass destruction. This involves:

• Registering with the Council for Financial Activities Control (COAF)
• Implementing clear internal policies
• Conducting annual risk assessments. 

Related article:

• How to get a Brazil gaming licence

In addition to this, Law No. 14,790/2023 states that the authorisation to operate fixed-odds betting is conditioned upon the implementation of strict policies aimed at preventing Anti-Money Laundering (AML), Financing of Terrorism (FT) and the Proliferation of Weapons of Mass Destruction (PLD/FTP). SPA/MF Ordinance No 1,143/2024 mandates the policies, procedures and internal controls for the three aspects. A few key points to note are as follows: 

• Annual internal assessment to identify risks for AML & FTP
• Records and documents must be kept for at least five years
• Designated responsible person for Integrity and Compliance
• Annual report to be submitted to the SPA
• Providing regular training on the prevention of AML/FTP and other related crimes

KYC standards at the core of Brazil gambling regulations

Brazil’s iGaming regulations set a high standard for security and player protection. Strict Know Your Customer (KYC) procedures require bettors to verify their identity using their Individual Taxpayer Registration (CPF) number and facial recognition technology upon signup.

Operators must go further by rating players according to their risk profile. You will need to prevent prohibited individuals, such as minors, from registering. Don’t forget that electronic payments must flow through institutions authorised by the Central Bank of Brazil. Credit cards, cash and cryptocurrencies are completely off the table. 

Furthermore, licensed operators must submit detailed AML and CTF policies. Reporting suspicious transactions and screening for Politically Exposed Persons (PEPs) is also required.

What is Customer Due Diligence (CDD)?

On the other hand, CDD is a part of the KYC process, which mandates betting operators to gather necessary customer information in line with Brazil’s federal AML legislation, COAF requirements and SPA Ordinance No 1,143/2024. Similarly, there are a few points to pay attention to in the ordinance:

• Identification and validation: Identity must be verified and validated upon registration.
• PEP screening: Operators must verify if the bettor is a Politically Exposed Person (PEP) or a close associate, following the rules issued in this regard by COAF.
• Risk classification: Bettors must be classified into risk categories defined in the internal risk assessment.

Technical compliance requirements for the Brazil betting licence

The Brazilian government is now trying to shape its fast-growing gambling industry with an increasingly rigorous regulatory framework. As Brazil builds out its regulated gambling market, the focus is expanding beyond AML and KYC obligations.

Regulators are now placing equal weight on technical compliance, introducing strict standards for system integrity, data protection and operational security.

Federal licences require not only robust AML controls and mandatory KYC checks with facial recognition but also adherence to data centre rules mandating local hosting in Brazil and ISO 27001-certified infrastructure.

The regulatory discussion also reflects wider social concerns. Despite ongoing complexities, the industry is striving to balance its growth with a safer and more accountable betting ecosystem.

IT security and technical controls for the federal licence

First and foremost, the betting system, including the sports betting platform and online gaming platform, must be certified by a recognised certifying entity, as stated in the SPA/MF Ordinance No 722/2024. 

The certifying entity has to be recognised by the SPA, for example, Gaming Laboratories International LLC, Trisigma BV, Quinel Limited, eCOGRA Limited and BMM North America Inc.

Operators must revalidate the certification assessment reports annually and whenever there are changes to critical components. Operators should also have assigned a designated director for the operational security of the betting system during the application. 

Data protection and maintaining data integrity

Operators are required to maintain their betting systems and related data in data centres located within Brazil, as set out in Normative Ordinance No 722/2024. There is some flexibility if systems and data are hosted abroad in a country that has a joint civil and criminal International Legal Cooperation Agreement with Brazil. You must also meet all the cumulative conditions outlined in the ordinance.

As mandated in the aforementioned ordinance, all recorded data must be maintained and backed up for a minimum of five years. Data must be stored redundantly to prevent loss in case of component failure. Operators must also adopt a business continuity policy and a disaster recovery plan and ensure all systems are supported by an uninterruptible power supply to allow safe shutdown and data retention during power loss.

Data centre and server requirements for operators

The data centres that host betting systems must hold ISO 27001 certification. You must also store servers hosting betting systems in secure facilities and equip them with surveillance systems. They must be protected against alteration, tampering or unauthorised access.

Network and communications security standards

For licensed operators, there is a specific domain requirement. Fixed-odds betting sites must exclusively use the “.bet.br” domain registration. Domain Name System Security Extensions, also known as DNSSEC, are also mandatory for the domain registration for DNS security. 

Furthermore, all critical communication data and sensitive information must also be encrypted and protected. In order to prevent attacks such as Distributed Denial of Service (DDoS), an Intrusion Detection/Prevention System (IDS/IPS) is required and communications must pass through at least one approved application-level firewall.

Ensuring fairness in online games and live studios

The SPA has also imposed measures to ensure fairness in online casino games and live studios. Firstly, all online game results must be determined by a Random Number Generator (RNG). Secondly, it requires physical security controls to run live game studios. It is also a must to operate a continuous surveillance and recording system during live games. Recordings are to be maintained for at least 90 days. 

Key personnel roles required under SPA rules

According to the SPA/MF Ordinance No 827/2024, an administrator refers to a person who holds a management position, who is a director or equivalent, or a member of the board of directors of the applicant company. When submitting your application, you will need to name specific individuals responsible for the below areas:

1. Relationship with the Ministry of Finance
2. Customer service and ombudsman 
3. Accounting and finance 
4. Integrity and compliance 
5. Personal data processing and data security
6. Operational security of the betting system

Per the same ordinance, the people responsible for areas 1 to 4 must hold the title of director (or equivalent).

On the other hand, the SPA does not allow dual roles for people responsible for areas 2 to 6. In principle, you will need:

• 1 director – Accounting & Finance
• 1 director – Integrity & Compliance
• 1 director – Customer Service & ombudsman
• 1 director – liaison with Ministry of Finance (can be one of the above)
• 1 person – data protection (DPO-type role)
• 1 person – betting system operational security

Enforcement powers shaping Brazil gambling regulations

Brazil’s new betting framework gives regulators broad authority to supervise, audit and penalise licensed operators, if necessary. Multiple government bodies share oversight, with each playing a distinct role in maintaining market integrity, consumer protection and AML compliance. 

Operators must follow rules covering licensing, taxes, advertising and data protection. Several government bodies are involved in enforcing these requirements. Together, they shape how betting companies can operate in Brazil.

The Ministry of Finance

The Ministry of Finance serves as the central governmental body responsible for regulating fixed-odds betting operators in Brazil. The Secretariat of Prizes and Bets (SPA), a department of the Ministry of Finance, is Brazil’s federal gambling regulator. It was established by Law No 14,790/2023 in December 2023. Also known as “Lei das Apostas” or “Betting Law,” the law regulates the iGaming market nationwide, including both fixed-odds betting, virtual casino-style games and lottery.

The Ministry of Sport (MESP)

MESP is the governmental body responsible for defining, maintaining and updating the list of specific sports modalities and entities eligible to be the subject of fixed-quota bets in real sporting events. 

MESP carries out this responsibility mainly through MESP Ordinance No 125/2024, which clearly names the sports that can be bet on and prohibits betting on categories or events exclusively involving young athletes. 

Furthermore, MESP plays a crucial role in the overall regulatory ecosystem by confirming their approval after the SPA’s review of a federal licence application, before authorisation is granted. It assists the SPA in ensuring the integrity of sporting events.

Special Secretariat of the Federal Revenue of Brazil (RFB)

The Special Secretariat of the Federal Revenue Service (RFB) of Brazil is centrally responsible for administering federal taxes and the active debt of the Union, including establishing collection codes. 

From the fixed-odds betting lotteries perspective, the RFB has the authority to audit operations to ensure they comply with tax obligations, regardless of any licence or authorisation issued by the SPA.

Council for Financial Activities Control (COAF) 

The COAF is the central authority for monitoring and analysing operations to prevent anti-money laundering (AML), terrorism financing (FTP) and the proliferation of weapons of mass destruction (PLD/FTP) in betting operations.

As stated in SPA/MF Ordinance No 1,143/2024, operators must develop internal procedures to detect and communicate suspicious activity to the COAF via the Sistema de Controle de Atividades Financeiras (Siscoaf). The council also defines compliance standards, for instance, the criteria for identifying PEPs, as mentioned in the above KYC section.

Central Bank of Brazil (BCB)

The Central Bank disciplines payment arrangements to prevent transactions intended for unauthorised operators. Moreover, it grants authorisation to financial institutions and payment providers to manage monetary operations. While cryptocurrencies are not accepted in gambling payments, the Central Bank also supervises virtual asset service providers (VASPs).

Related article:

• Crypto gambling in Brazil: What new rules mean for operators

State-level authorities 

A federal licence from the SPA allows operators to offer fixed-odds betting services across the country, with an application fee of BRL30 million for five years.

Some operators have chosen to apply for state-level licences, such as those issued by LOTERJ in Rio de Janeiro, where the authorisation fee is BRL5 million. However, these state licences restrict operations to their respective jurisdictions and their validity outside those states remains under legal and regulatory discussion.

Consumer protection bodies 

As licensed operators, you will need to pay attention to customer relationships, as all bettors are assured basic rights under the Consumer Defence Code (Law No 8,078/1990). Licensed operators must structure a specific channel to address demands originating from the public bodies that are part of the National Consumer Defence System (SNDC). 

SNDC includes the National Consumer Secretariat (SENACON), which sets national policy. On the other hand, the local Consumer Protection and Defence Programmes (PROCON) handle day-to-day complaints. 

These agencies step in to oversee disputes as well as ensure promotional transparency and adherence to advertising standards. They are also responsible for enforcing responsible gambling tools, such as mandatory limits, pauses and self-exclusion.

Conselho Nacional de Autorregulamentação Publicitária (CONAR)

CONAR, a.k.a. the National Advertising Self-Regulation Council, establishes additional restrictions and guidelines with which companies voluntarily comply. It also issues specific recommendations regarding communication, publicity and marketing activities. 

In particular, CONAR published Annex X to its Advertising Code to ensure betting advertisements are responsible, focusing particularly on the necessity of protecting children, adolescents and other vulnerable persons.

Agência Nacional de Telecomunicações (ANATEL)

ANATEL is responsible for regulating the Internet service providers and telecommunications. It cooperates with the SPA to regulate unauthorised betting activities.

When the SPA identifies betting websites run by unlicensed operators, ANATEL has the authority to block the illegal websites upon the SPA’s instruction.

Autoridade Nacional de Proteção de Dados (ANPD)

The ANPD, a.k.a. the National Data Protection Authority, oversees compliance with Brazil’s General Data Protection Law (LGPD), ensuring gambling operators handle user data responsibly.

It enacts requirements around user consent, data security and breach reporting. Licensed operators must comply with ANPD standards when processing personal data or risk fines and other penalties. This covers information such as player registration (KYC), payment and banking details as well as responsible gambling records.

How CPI investigations influence industry compliance

CPI in Brazil stands for Parliamentary Inquiry Commissions. For example, the betting CPI was established to investigate the growing influence of online gambling on Brazilian families’ financial spending. 

The investigations have been shaping industry practices as they drive debates for stricter Brazil gambling regulations. Key issues such as misleading influencer advertising and money laundering were covered. The CPIs indeed increased pressure on operators for compliance. 

How to stay compliant with Brazil gambling regulations

As a potential applicant or a licensed operator, it is also important to stay updated with the latest news of the licensing framework. The Ministry of Finance website is an excellent resource for keeping yourself informed on Brazil gambling regulations. The ministry provides regular updates on aspects such as legislation and authorised certification bodies.

If you are interested in receiving regular updates and expert analysis via email, you might find signing up for our newsletter resourceful. You could also visit our Legal & Compliance section or check back in The Rulebook for essential updates. 

Brazil gambling regulation FAQs

The Federal Revenue Service in Brazil published its monthly tax update on Monday. The BRL1.09 billion figure was 9.4% lower than the BRL1.21 billion generated in September.

However, it did take the total market tax contribution to BRL7.95 billion for the year. This is the latest indicator the market has reaped sizeable financial benefits since regulation launched in Brazil on 1 January.

Brazil government set to vote on tax increase on Wednesday

The tax situation for the regulated Brazil betting sector could change imminently, with a vote scheduled on Wednesday for the current rate to be doubled.

Currently, the tax rate on GGR stands at 12%. However, operators have to pay a number of other taxes, meaning their overall rate is in excess of 40%.

The Senate’s Economic Affairs Committee is expected to vote on PL 5,473/2025 on Wednesday, with the bill doubling the tax rate to 24%.

If it is approved the bill will go straight to the Chamber of Deputies, unless an appeal is made for the Senate plenary to vote on it.

The bill is facing opposition, however, with a previous vote postponed reportedly due to the Chamber of Deputies President Hugo Motta stating the proposal would fail to have the required support to pass.

Brazil government intent on hiking gambling taxes

With an election looming next year, President Lula’s administration appears determined to increase gambling taxation as it seeks to hit its fiscal targets.

The government recently faced a major setback when its provisional measure proposing a 50% hike in gambling taxes failed.

According to Brazilian iGaming analyst Elvis Lourenço, this defeat has triggered renewed and increasingly urgent efforts by the administration to push tax rates even higher.

“That’s the main reason that they struck back so fast, because it was embarrassing for them,” Lourenço, managing partner of EX7 Partners, previously told iGB.

“This becomes an election agenda, because this is good for the audience and the public to get votes because we are a conservative country in some ways. So, to put this on their agenda, ‘we increase the taxes of the billionaires, of the gambling world’, it is good for the speech of the actual government.”

Lourenço warns that doubling the current tax rate would be an “insane” decision, one that could jeopardise the regulated market.

Brazil has captured much of the gambling sector’s interest this year after regulation launched on 1 January, with a number of international giants entering the market.

One such company was Flutter, which created its new Flutter Brazil business after acquiring a 56% stake in NSX, the parent company of Brazil-facing brand Betnacional.

That deal was concluded in May and, in Q3, Flutter achieved $87 million in revenue from its Brazil venture. This was 412% higher than the $17 million it generated in the same quarter last year prior to the completion of the NSX deal, which largely came from its existing Betfair business.

But while Betnacional achieved record iGaming revenues in Q3, excluding M&A Flutter’s revenue during the quarter was actually down 18%, which Flutter attributed to the fact that Betfair Brazil was still continuing its recovery from the friction derived from the re-registration required at the start of regulation in January.

Despite the Betfair struggles, Flutter CEO Peter Jackson remains confident the company will succeed in Brazil.

“Brazil is an exciting growth opportunity for Flutter and we retain a strong conviction that scale operators with the best products will win the largest share of the market,” Jackson said in the Q3 report.

Entain hampered by poor sports margin

Entain, meanwhile, enjoyed a successful transition to the regulated market with its Sportingbet brand, reporting a 21% year-on-year NGR rise in Brazil during H1.

But Q3 was a different story, with NGR in Brazil down 11% despite 14% volume growth.

Entain deputy CEO and CFO Rob Wood put this down to “genuine bad luck from sports results”, stating the company is still trading on the right side of expectations when it comes to volume.

He expects sports margin to normalise over time, with the volume growth demonstrating why Flutter continues to be enthused about its future in Brazil.

It’s not just sports betting where Entain struggled during Q3, however, with Wood saying slow game authentication has hampered the company’s iGaming efforts in Brazil.

“iGaming is not particularly strong at the moment and all the growth is coming from sports,” Wood said on the earnings call. “We think this is a market-wide phenomenon, not just Entain.

“The good news is we think there’s a lot more growth to come out of gaming as we look forward. But so far in 2025, it’s been slow.”

BetMGM investing heavily in Brazil

Last August, MGM Resorts International struck a partnership with Grupo Globo, LatAm’s largest media group, to introduce the BetMGM brand to the Brazilian market as a joint venture.

The company has stated on a number of occasions that it is aiming to reach 10% market share in Brazil, and it reiterated this target in its Q3 presentation.

MGM achieved “strong growth” in Brazil during Q3 without giving direct figures. The company is focused on efficiently building brand awareness and customer acquisition, powered by its on-the-ground team led by MGM Brazil CEO Almir Ribeiro.

However, MGM Resorts International CFO Jonathan Halkyard said the company’s heavy investment in Brazil will likely lead to MGM Digital reaching an EBITDA loss of close to $100 million for the year.

Halkyard explained the company’s investment is in line with its roughly 50% stake in the JV, which is already showing positive signs.

“The venture has seen encouraging growth quarter-over-quarter throughout the year in active players, deposits and GGR,” Halkyard said on the company’s earnings call.

Record LatAm casino revenue for Betsson in Q3

Betsson continues to make significant efforts in LatAm, launching in Brazil and Paraguay during 2025 to add to its existing markets which include Argentina, Colombia and Peru.

It is proving a successful venture, with Betsson achieving year-on-year revenue growth of 10.2% to €76.5 million in LatAm over Q3.

This was powered by record casino revenue in the region, rising from €46.1 million in Q3 2024 to €56.6 million in the same period this year.

Casino growth helped to offset a year-on-year drop in sportsbook revenue from €23.1 million to €19.8 million. Betsson put this down to tough comparisons with last year’s Q3 which included the European Championship and Copa America football tournaments.

LatAm accounted for 26% of Betsson’s revenue in Q3, down from 28% in Q2.

Betsson CEO Pontus Lindwall pointed to Argentina, Peru and Colombia as key areas of focus, with the former continuing to show strong underlying growth in terms of deposits and turnover.

Codere Online positioned to become a leading player

Codere Online is currently operating in the LatAm markets of Mexico, Colombia and Panama, as well as certain provinces in Argentina.

Its current total addressable market (TAM) is €4.8 billion, although it noted in its Q3 presentation the combined TAM of online expansion markets, which includes Brazil, Peru and Uruguay, could be €8.4 billion by 2029.

In the presentation, the company said: “Codere Online is especially well positioned to become a leading player across the region.”

Mexico continues to be Codere Online’s biggest market, achieving market revenue of €26.8 million in Q3. This is ahead of the €22 million generated in its home market of Spain.

However, with Mexico’s government weighing up increasing the gambling tax rate from 30% to 50%, Codere Online said it may have to reconsider its investment into the market.

Outgoing CFO Oscar Iglesias, who will shortly be replaced by Marcus Arildsson, expects the tax to come in from 1 January.

“The discussions around capital allocation, I think, is a broader one, and it’s in the context of the discussions we’re having at the board level,” Iglesias told analysts.

“The tax obviously factors into … our appetite and willingness to invest into the market because it has an impact on the unit economics, the flow-through of every dollar of NGR to EBITDA in the business.  

“It’s still a little bit early to say what that means in terms of our plans for next year to invest in Mexico.” 

Codere Online is also working under the assumption that the 19% VAT in Colombia, which is set to end from the start of 2026, will be renewed.

Codere Online Executive Vice Chairman Moshe Edree explained the operator’s short- to mid-term strategy “does not include Colombia”, echoing CEO Aviv Sher’s post-Q2 comments that the company was pulling back in the market.

RSI confident Colombia VAT won’t be renewed

But while Codere Online is expecting the VAT to be renewed, Rush Street Interactive CEO Richard Schwartz said on the company’s post-Q3 earnings call that the business is predicting the tax will be scrapped.

Rush Street Interactive followed many other operators in absorbing the tax through player bonusing. This meant in Q3, while GGR from Colombia grew over 50%, net revenue was down 27%. Revenue across LatAm fell 11%.

Despite this, Rush Street Interactive believes it holds second place in Colombia, while it also claims to be among the top seven operators in Mexico.

Monthly active users in LatAm during Q3 were up 30% year-on-year to around 415,000.

Rush Street Interactive listed Brazil, Ecuador, Argentina and Chile as potential expansion opportunities.

When asked on the earnings call whether the situation in Colombia may dampen the company’s interest in further LatAm expansion, Schwartz responded by saying the company was still excited by the region.

“We believe those markets are at the infancy of growth,” Schwartz said. “And as we see in our growth ourselves, there’s lots of opportunity there, and it’s a very large population across Latin America that are in the process of or will be legalising online gaming in the future. So we certainly remain very excited for it.”

Kambi lowers FY2025 guidance due to slow Brazil progress

In its Q3 report, Kambi announced it was lowering its full-year 2025 guidance from an adjusted EBITDA of €20 million-€25 million to approximately €17 million.

The company said this was in part down to the Brazilian market developing more slowly than expected, with CFO David Kenyon stating the company isn’t seeing the growth in Brazil it had “hoped for”.

Kambi CEO Werner Becher said on the earnings call that while the Brazil market is continuously growing, he believes the overall pre-regulation market size was overstated.

“There’s a little bit of disappointment, I would say, in the entire industry about the Brazilian market,” Becher claimed.

“The legalised regulated market grew slower than expected because the black market is still very big there.”

Following the failure of a provisional measure to increase the tax rate from 12% to 18%, new proposals were made in October to hike the current rate on gross gambling revenue to 24%.

An initial vote for the proposal was postponed earlier this month, prior to Tuesday’s meeting of the Economic Affairs Committee (CAE) also being pushed back.

Reportedly, Chamber of Deputies President Hugo Motta believed the bill did not have the required support to pass. He informed Senate chief Davi Alcolumbre of his intention to prevent the bill from going to a vote. This ultimately led to CAE president Renan Calheiros cancelling the meeting.

It is expected that negotiations over what the bill includes will continue with a vote potentially scheduled for next week.

The bill also contains a higher social contribution on net profit for fintechs and other financial institutions.

However, it could be a long process, with 172 amendments to PL 5,473/2025 having already been presented in the CAE.

If the bill is approved, it will head straight to the Chamber of Deputies unless there is an appeal for it to be voted upon in the Senate plenary.

Brazil government determined to hike gambling tax

With a general election coming up next year, the government, led by President Lula, seems set on increasing gambling taxes to meet its fiscal targets.

The government suffered a humiliating defeat when its provisional measure to raise the gambling tax by 50% failed.

Brazilian iGaming analyst Elvis Lourenço has told iGB this has led to desperate continued attempts to raise the tax rate.

“That’s the main reason that they struck back so fast, because it was embarrassing for them,” Lourenço, managing partner of EX7 Partners, told iGB in October.

“This becomes an election agenda, because this is good for the audience and the public to get votes because we are a conservative country in some ways. So, to put this on their agenda, ‘we increase the taxes of the billionaires, of the gambling world’, it is good for the speech of the actual government.”

Lourenço believes doubling the current tax rate would be an “insane” move that could risk a collapse of the regulated market, which only launched on 1 January this year.

On Monday, the SPA published Normative Ordinance No 2,579 and Normative Instruction No 31, which will reinforce its policies of protecting bettors and promoting responsible gambling.

The centralised self-exclusion platform, which has been developed by the Federal Data Processing Service, is expected to be available by the end of 2025.

The measure will allow bettors to voluntarily request the blocking of their registration to betting platforms, with the tool available either for application to specific operators, or as an all-encompassing version which will cover all federally licensed betting platforms.

This can either be for a fixed term or indefinitely.

Additionally, operators will have to implement mandatory self-limits on time and wagering amounts at the time of registration.

These new measures align with the SPA’s 2025-26 regulatory agenda, which it laid out in April, with the regulator stating at the time the implementation of a national platform for players to self-exclude was the “most important” item.

SPA chief Regis Dudena reiterated the protection of players was the regulator’s chief concern and he expects the self-exclusion scheme will prove to be successful.

“We are giving people the possibility to decide whether they want to temporarily restrict their exposure to betting, in a centralised and secure way, including reducing their access to advertising,” Dudena said. “This is a step forward that puts Brazil in a leading position in the world in caring for our population.”

Brazil operators given 30 days to adjust to self-exclusion requirements

The measures will mandate operators to verify a user’s status in the centralised self-exclusion database through Sigap, Brazil’s betting management system, using players’ Individual Taxpayer Registration (CPF) numbers.

This must be done at account registration, at first login each day and every 15 days for all active users.

Operators must immediately block new bets of users marked “Blocked – Centralised Self-Exclusion” and close their account within three days from the date of the query.

Operators should refund any remaining funds or value of open bets to bettors within two days, with the record of the communication maintained for at least five years.

It will be forbidden for operators to carry out active communication, targeted advertising or direct notifications to users to inform them of the possibility of readmission to the betting system.

Within 30 days of Monday’s publication of the new measures, operators must integrate with the centralised self-exclusion system.

A 90-day period has been granted for operators to adapt their betting systems, implement the self-limit tools and update their registration forms.

The self-limit tools will allow bettors to set daily, weekly or monthly betting limits, either on time spent or amount wagered. Users can choose to receive program alerts or usage blocks according to the time elapsed in their betting session.

Bettors can also pause their accounts temporarily. They will still have access to their accounts but will be unable to place bets.

After its authorisation to operate in the newly regulated Brazil online gambling market was formalised in July, Caixa set a November date for the launch of its betting offering.

However, the plans received political criticism, as Senator Damaras Alves launched a scathing attack on Caixa in October, describing its plans as a “contradictory, dangerous and profoundly irresponsible move”.

This attracted the ire of Brazil’s president, Luiz Inácio Lula da Silva, who then met with Caixa President Carlos Vieira to discuss the matter.

According to local news outlet O Globo, Caixa has now decided to delay its planned November launch, with no new date given.

Vieira previously estimated Caixa’s betting business would achieve revenues of between BRL2 billion (£371.8 million) and BRL2.5 billion in 2026, in its first full year of operation.

The licence covers three brands: BetCaixa, Megabet and Xbet Caixa. The company did not respond to iGB’s request for comment on the delay.

What does this mean for Caixa and the market?

Caixa’s plans to launch betting also raised questions around competition, with concerns over whether a state-owned entity should be involved in the market considering the potential for government influence.

As an example, Vieira had previously described a potential rise in the gambling tax rate from 12% to 18% as “reasonable”, going against the opinions of the majority of the regulated sector.

Fabio Ferreira Kujawski, partner at Brazilian law firm Matthos Filho, expects this comment stems from Caixa’s difficult position, in which it “cannot publicly oppose what the federal government is saying”.

Atucha has warned Caixa’s delayed launch highlights various “contradictions” within Brazil’s regulatory landscape, with the government seemingly halting Caixa’s entrance into what is now a legal activity.

“With rising taxes, political debate and public backlash, the move risks undermining the regulated market itself,” the LatAm iGaming expert tells iGB.

“Instead of fostering a sustainable, competitive environment, these actions may end up strengthening the position of unlicensed, offshore operators, precisely the opposite of what regulation is meant to achieve.”

Questions over Caixa’s potential

Vieira has voiced his hopes Caixa will become a “major player” in the regulated Brazil betting market.

Caixa holds a legacy federal lottery monopoly, and its status as a state-owned bank means it should have strong brand recognition as a trusted entity in Brazil.

However, H2 Gambling Capital Managing Director Ed Birkin doesn’t expect Caixa to be at the very top of the market, despite its existing lottery player base.

“I do not believe that they will be one of the number one operators,” Birkin told iGB earlier this month. “Lotteries have never done particularly well against commercial operators in the online betting and iGaming market.”

Birkin describes Vieira’s estimate of 2026 revenues between BRL2 billion and BRL2.5 billion as “highly ambitious”, with the upper band of that prediction placing Caixa at a market share of 7.5%, according to H2 data.

“It would be completely unheard of for a lottery operator to get to a podium position, or even a top five position in a commercial market,” Birkin explained.

However, Caixa may not need to invest as heavily in marketing as other operators entering the Brazilian market, since it can leverage its established lottery brand and possibly its existing player database.

This advantage, Birkin suggests, is one reason Caixa is likely to run a profitable betting operation.

“In terms of the financials, they can be profitable with a much lower market share than other people in the market,” Birkin said.

“They already have all the land-based network there, they already do have online operations. So it financially makes sense for them. It should very much be additive to their earnings. The financials are more compelling than they would be for commercial operators.”

The BRL3.7 billion figure represents 27% of the total amount granted to Bolsa Família recipients during the month of January.

Betting among social welfare recipients is a contentious issue in Brazil and a ban on gambling by those beneficiaries was formally announced in late September.

The TCU, a federal audit office, conducted the study to establish whether families were using the money from social welfare programmes to bet online, finding the amount spent was “very high”.

As part of the study, the TCU analysed data on financial transfers made from the government to Bolsa Família recipients. Additionally, the study also utilised data from the Ministry of Social Development, the Ministry of Finance and the Central Bank.

The TCU ordered the Ministry of Social Development, Assistance, Family and Fight against Hunger, as well as the Central Bank, to submit an action plan to identify and reduce improper inclusions in the Bolsa Família programme within 90 days.

Additionally, the department called for bank transactions that “excessively exceed” players’ declared income amounts to be used as evidence.

An investigation into the misuse of beneficiaries’ Individual Taxpayer Registration numbers by third parties for illicit purposes, especially gambling, has been called for.

Ban on betting among social welfare beneficiaries in Brazil

The discussion over betting among social welfare beneficiaries gathered real momentum last year ahead of regulation coming in on 1 January.

In November 2024, the Supreme Federal Court upheld an emergency measure to prohibit betting via social welfare proceeds.

In late September, the Secretariat of Prizes and Bets published Normative Ordinance No 2,217/2025 and Normative Instruction No 22, completely banning recipients of the Bolsa Família and Continuous Benefit Payment programmes from fixed-odds betting.

A database of social welfare beneficiaries has been established and betting operators are required to consult it when verifying player registrations and logins.

Operators must also cross-check bettors’ CPF numbers in Sigap, Brazil’s betting management system, to identify any users listed as welfare recipients.

These checks must be conducted at least every 15 days for all registered users. If a user appears in the database, operators must block their registration, close their account and refund any deposited monies.

Operators were initially given 30 days to comply with the ban, although this deadline has been extended by an additional 30 days.

Does the ban go too far?

The ban has proved hugely divisive. Lawyer Luiz Felipe Maia has suggested the prohibition constitutes a civil rights issue.

Maia, founding partner of Brazilian law firm Maia Yoshiyasu Advogados, previously told iGB: “At the end of the day it becomes a civil rights issue, because what we’re saying is, ‘Okay, if I am in a situation where I need welfare, I cannot decide where I’m going to spend my money, so I have limited freedom’.

“Either you give them stamps and say, ‘Okay, these stamps are for food and you can only use those for food’, or you’re giving them money and you’re allowing them to decide what they’re going to do with that money.”

Some have warned too that the prohibition could simply lead to banned players looking to the black market to bet.

The National Association of Games and Lotteries believes the ban goes too far, with the initial ruling only prohibiting the use of social welfare money for betting.

An ANJL-commissioned study shared with BNL Data found that 45% of social welfare beneficiaries plan to turn to the black market to continue gambling once the ban takes effect.

Political tension over Caixa’s plans reached a peak last month as local news reported President Luiz Inácio Lula da Silva has requested a meeting with Caixa’s president, Carlos Vieira, to discuss the matter.

In October, Brazil Senator Damara Alves condemned the launch, which is planned for November, describing the plans as “perhaps one of the greatest moral and social setbacks in the country’s recent history”.

Caixa’s move has raised questions over whether a state-owned financial institution should be involved in a sector that has gained a hugely negative reputation among politicians, who are increasingly concerned about the harms related to betting.

Is President Lula just looking for election support?

Despite this political pushback, Caixa’s legacy federal lottery monopoly could help propel its upcoming betting brand as consumers respect and know the brand well.

These plans have been known for a while, with Caixa applying for a licence to operate in the regulated market in August last year. Its licence to operate was formally authorised on 29 July this year.

With an election coming up next year, Fabio Ferreira Kujawski, partner at Brazilian law firm Matthos Filho, believes President Lula is trying to appease the significant evangelical faction of Brazil’s Parliament with his pushback against Caixa’s plans.

“I think the government is wanting the taxable revenue [from Caixa] on one hand, which is good. [It could be] making a lot of money and collecting a lot of taxes,” Kujawski tells iGB.

“On the other hand, they’re trying to make a [comment] to the society that we are against this [move], and that Caixa should not be involved in gambling at all because that’s not the principal reason why [we have] such a big bank controlled by the state.”

Kujawski suggests the negative press surrounding the gambling sector and the timing of the general election next year have led to the rise in discourse around Caixa’s betting plans.

Caixa’s difficult position as a state-owned entity

Lula’s government is making moves elsewhere to restrict Brazil’s nascent betting sector, with additional ad restrictions on the horizon and multiple bills seeking to raise the gambling tax rate in discussion.

A provisional measure to increase the tax rate from 12% to 18% was vetoed in October, although an additional proposal has been launched to double the current rate to 24%.

Notably, Caixa President Vieira previously labelled the rise to 18% as “reasonable”, going against the views of the vast majority of the regulated sector.

The company’s mammoth status could help support it through tightening regulations, while much smaller operators will likely be forced out of the market if the measures are enacted.

Kujawski warns Caixa could also be in a difficult position in terms of opposing Parliament’s plans, due to its state-owned status.

“Caixa is in a situation where it cannot publicly oppose what the federal government is saying,” Kujawski explains. “That’s why they said 18% is not that bad, while we know that 18% is a disaster for the legal market.”

If new restrictions are to come in as many fear, H2 Gambling Capital Managing Director Ed Birkin suggests Caixa, as well as the black market, could be set to profit.

“Let’s say they double the tax rate and they ban all advertising,” Birkin says. “Do you know who benefits from that? Apart from the black market, obviously it’s Caixa.

“They’re well known. They’ll probably still be able to advertise on their lottery products and all the other things. So they’re still have all the brand recognition. They can probably absorb higher taxes than commercial operators can.”

Will Caixa be successful in the betting sector?

Beyond whether the bank and lottery monopoly should be allowed to operate a betting business, stakeholders have also questioned whether Caixa will be able to compete with the other already established operators in the regulated sector.

Despite Caixa possibly profiting from incoming restrictions, it will come up against huge international entrants with seismic investments behind them.

H2 Gambling Capital is forecasting players Betano, Bet365, Superbet and Sportingbet as the top four operators in Brazil by market share. Notably, these players have been operating in Brazil since, or even before, the licensed market opened in January.

Caixa holds a state monopoly for the federal lottery in Brazil, and it is reportedly preparing its 15,000 lottery outlets to operate betting options. The bank has partnered with Playtech to supply this technology, ahead of the launch.

Birkin believes Caixa won’t make it to the very summit of the market, despite its existing lottery audience and the trust and loyalty that surrounds such a well-known institution.

“I do not believe that they will be one of the number one operators,” Birkin says. “Lotteries have never done particularly well against commercial operators in the online betting and iGaming market.”

Caixa’s expectations

Vieira has said the bank expects to achieve betting revenue of between BRL2 billion ($371.8 million) and BRL2.5 billion next year. The upper band of that estimate would place Caixa at a 7.5% market share for 2026 according to H2 estimates.

Birkin thinks Vieira’s prediction is “highly ambitious”, with the crossover between lottery and sports betting not historically a hugely successful venture.

“It would be completely unheard of for a lottery operator to get to a podium position, or even a top five position in a commercial market,” Birkin adds.

However, it could be said that Caixa won’t need to match the same levels of marketing investment as competitors that have entered Brazil, as it could lean on its legacy lottery brand and potentially even its player database. This is partly why Birkin believes Caixa will likely be a profitable betting business.

“In terms of the financials, they can be profitable with a lot lower market share than other people in the market,” Birkin concludes.

“They already have all the land-based network there, they already do have online operations. So it financially makes sense for them. It should very much be additive to their earnings. The financials are more compelling than they would be for commercial operators.”

Despite the ongoing political tension surrounding betting in Brazil, the sector has largely operated as normal in its first year. And although President Lula has called on Caixa to discuss its plans, stakeholders believe the bank’s betting business will likely launch as planned.

Dragic founded the company and returned as co-CEO in September last year. He will switch to the solitary leadership position from 1 January 2026, Superbet confirmed on LinkedIn.

Jimmy Maymann, who has been serving as co-CEO since January 2024, will step back but rejoin the company’s board. His reappointment to the board will also take effect from January.

Other changes include Albert Simsensohn, currently group chief operating officer, becoming deputy CEO. This, Superbet said, will “align strategy and drive execution” across its business.

In addition, Eamonn O’Loughlin will switch from chief operating officer international to the position of chief operating officer. Superbet said this will expand his responsibilities to lead customer operations and partnerships across the group. O’Loughlin will retain commercial leadership for markets outside Central and Eastern Europe.

‘Planned evolution’ for Superbet

Commenting on the changes, Dragic said the new-look team marked a “natural step” in the operator’s growth journey. Dragic founded Superbet in 2008 and initially exited as CEO in 2019 after 10 years in the role, shifting to board member.

“This planned evolution of our leadership team marks a natural step in our growth journey,” Dragic said of the changes. “It reflects the maturity of our organisation and our ambition to push forward, positioning Superbet for the next phase of sustainable global expansion.”

Maymann became CEO at the start of 2024, succeeding Johnny Hartnett, who spent almost five years in the role. He subsequently stepped into a non-executive board position.

“I want to recognise Jimmy, whose leadership and partnership have shaped much of our progress to date,” Dragic said. “Over the past couple of years, we have achieved remarkable results, advancing our product and technology capabilities, strengthening our position in key markets, and building a culture of financial discipline and accountability.

Maymann added: “It’s been a privilege to work with Sacha and the whole Superbet team. I’ll continue to do so as an advisor and as part of the group’s board. This is a great company with a huge potential ahead and I’ll stay engaged and help see it materialise.”

Superbet plots further growth

The news came in what has been an active year for Superbet. In February, it secured a €1.3 billion refinancing agreement with existing investors Blackstone and a number of funds and accounts managed by HPS Investment Partners (HPS).

At the time, the operator said this would support growth into new markets and M&A. It also said it was planning further investment in technologies. 

Superbet was one of the first operators to be granted a full online betting licence in Brazil on 1 January. It was among 14 to be granted a full licence upon the market’s opening. The operator is active in 12 markets in total, also listing Romania, Belgium, Poland and Serbia as key regions.

In recent months, the operator has sought to expand its presence in some of these markets through local sponsorship agreements. These include new deals with Polish football clubs Jagiellonia Białystok and Arka Gdynia.

On 30 September, the SPA published Normative Ordinance No 2,217/2025 and Normative Instruction No 22, completely banning beneficiaries of social welfare programmes such as Bolsa Família from participating in fixed-odds betting.

This followed a November 2024 Supreme Federal Court ruling which upheld an emergency measure to ban gambling with social welfare proceeds.

Operators were given 30 days to comply by closing the accounts of those receiving social welfare from the Bolsa Família and Continuous Benefit Payment programmes.

But with the deadline set to expire, the SPA has moved to extend the timeframe allowed for operators to comply.

No detail has been given as to why the deadline has been extended by the SPA.

Study warns of migration to black market

Following the formal publication of the ban, SPA chief Regis Dudena voiced his confidence that the prohibition would prevent vulnerable Brazilians from betting beyond their means.

However, many in the sector warned those receiving social welfare would still bet, just via the black market.

The National Association of Games and Lotteries (ANJL) has been one trade body to express its displeasure with the ban, particularly as it went against the Supreme Court’s initial decision on the matter, which only banned users from betting with their welfare proceeds, rather than banning them from gambling entirely.

In an ANJL-commissioned study shared with BNL Data, it was found 45% of social welfare beneficiaries plan to migrate to the black market to gamble when the ban comes in.

Ed Birkin, managing director of H2 Gambling Capital, previously warned this could happen, despite the good intentions of the ban.

“There may be some who say, frankly, you should spend money on what you want,” Birkin told iGB. “But if you’ve been given benefits for a certain reason, then that’s it.

“But this idea that they can stop them betting; unless they’re able to really go down to restricting almost what they can spend it on [and say] you cannot spend it with a legal betting operator, they’re just spending with the illegal ones.”

Elvis Lourenço, a Brazilian iGaming expert and managing partner at EX7 Partners warns doubling the current gambling tax rate could have catastrophic consequences for the sector.

However, he suggests there may be room to negotiate the newly proposed 24% rate. He believes with intervention from the sector the rate could edge closer to 18%.

The tax 18% rate was previously proposed in Brazil’s initial sports betting bill which was passed into legislation in December 2023. However it was later brought down to 12% of operator GGR.

“The first bill that they proposed back in the day was 18%,” Lourenço tells iGB. “We all know that.

“So if you look for the best worst scenario, it is 15% at least, 18% maximum because that was on the first agenda.

“But 24% is insane. It’s insane and it will collapse the market.”

Where does Brazil’s gambling tax rate stand today?

Discussions over taxation on gambling in Brazil continue to plague the market, with the government determined to increase the rate amid concerns over the social and financial impacts of betting on the population since regulation launched on 1 January.

A provisional measure to increase the rate from 12% to 18% failed to pass through Parliament earlier this month, as did plans to introduce retrospective taxes for pre-regulation gambling activities.

Just a day after the provisional measure was withdrawn, a new bill (PL 5,076/2025) was presented by Lindbergh Farias, leader of the Workers’ Party in Brazil’s Chamber of Deputies, which seeks to double the tax rate to 24% of GGR.

PL 5,076/2025 received urgent status last week and, while it is still unclear when exactly the Chamber of Deputies president Hugo Motta will put the bill to a vote, the industry is once again left nervously awaiting developments.

Gambling being used for political motivations

The Brazil government seems dead set on increasing the tax burden on gambling, with a policy of introducing new taxes on the three Bs – billionaires, banks and betting.

With an election coming up next year, Lourenço suggests President Lula’s government is trying to appease the significant conservative section of the population by increasing taxes on betting operators.

This, according to Lourenço, has been expedited by the humiliation for the government of its failed provisional measure to increase the rate from 12% to 18%, with the gambling sector being used as a “currency of trade” by politicians.

“That’s the main reason that they struck back so fast, because it was embarrassing for them,” Lourenço explains.

“This becomes an election agenda, because this is good for the audience and the public to get votes because we are a conservative country in some ways. So, to put this on their agenda, ‘we increase the taxes of the billionaires, of the gambling world’, it is good for the speech of the actual government.”

Gambling industry the target

Brazil’s regulated sector has endured a mixed start, with hesitant optimism weighed down by lingering concerns over tax rises and new ad restrictions.

Many are frustrated by the threat of tightening regulations so early into the regulated market. Lourenço argues the fact that the licensed sector is still so new is in fact the reason it’s being targeted for tax increases.

“They [the Brazil government] need to collect [taxes] with some industry, and unfortunately we are the industry at target,” Lourenço says. “If they choose retail, commodities, banking, the lobby is too strong.

“So unfortunately, we are the target because we are new, with new regulation, and the conservative country says, ‘they can pay more’.”

Unfair comparisons to other markets

Lourenço also highlights the comparisons some are making to other jurisdictions, with such comparisons ignoring the other taxes that operators in Brazil are mandated to pay.

At present, in addition to a 12% tax on GGR, operators are subject to a 9.25% PIS/Cofins levy and municipal taxes that can reach up to 5%.

They are also taxed on approximately 34% of their profits, comprising 25% corporate income tax and a 9% social contribution tax.

Brazil is also transitioning to a new tax system, with PIS/Cofins being replaced with a dual tax system that Lourenço predicts could raise the total burden on operators to an excess of 50%, if further GGR-based taxes are also added.

Government targeting the wrong side of legality

Another point of frustration for Lourenço and much of the licensed sector is the government’s emphasis on targeting legal operators, rather than their black market alternatives.

Somestakeholders have estimated over half of the Brazilian gambling market’s revenue is generated by the black market, claiming the government’s focus on restricting licensed operators is hugely benefitting operators that act outside of regulation.

With the government seemingly desperate to generate more tax revenue from gambling, Lourenço suggests it should instead focus on bringing more betting onshore rather than simply raising the burden on licensed operators.

If the government can effectively reduce the black market, Lourenço says operators would be more inclined to reluctantly accept lesser tax increases.

“They are targeting to increase the taxes but they are not targeting to combat illegal gambling,” Lourenço adds. “So you have more than 50% in the black market and they’re doing nothing to get this money that is circling through.

“Guys, let’s try to get some money from here [illegal gambling]. If we can lower 50% to 30%, well it’s done.

“And the distribution of the money is too low for the security, for the enforcement. So we know that most of the money must go to health and to health programmes in Brazil and education as well. But you need to fight against the illegal market and you need to get the enforcement strong. But, it’s not happening.”

Caixa is a state-owned bank in Brazil, which raises questions over whether such an entity should be involved in an industry that divides opinion among Brazilian politicians, despite its strict regulatory framework.

Earlier this month, in an interview with Brazilian news outlet O Globo, Caixa President Carlos Vieira revealed the bank would launch its betting offering in November.

The move remains controversial, however, and on Wednesday Senator Damares Alves hit out at Caixa’s plans.

Alves said the launch contradicted the level of social responsibility expected of Caixa, as a state-owned entity in Brazil, as its product would put bettors at risk of gambling addiction.

“Caixa Econômica Federal’s decision to create its own online betting platform represents perhaps one of the greatest moral and social setbacks in the country’s recent history,” Alves told the Senate plenary.

“It is a contradictory, dangerous and profoundly irresponsible move, coming precisely from a public institution created to promote social development, affordable housing and financial inclusion, not to exploit the addiction and economic vulnerability of the poorest population.”

Why is Caixa’s betting entrance so controversial?

Alves claimed the launch of Caixa’s betting offering goes against the Brazil government’s objective to protect players from gambling harms.

Brazil’s government recently failed in its attempts to raise the gambling tax by 50%, while proposals to retroactively tax operators on their activities prior to regulation also collapsed.

However, the government seems to still be intent on raising taxes on gambling operators, with a new bill in motion to raise the rate to 24% of GGR, while additional ad restrictions are also on the horizon.

With the government believing it is taking steps to better protect bettors, Alves fears Caixa’s betting launch will legitimise the activity of betting and cause potential damage to Brazilians.

“The same government that claimed to want to control the damage now decides to be the agent of exploitation itself, transforming a public bank, a symbol of national trust, into an official betting house,” Alves explained. “It must be said bluntly: this is a tragedy waiting to happen!”

Caixa hoping to be at the forefront of Brazil betting

In the interview with O Globo, Vieira said he hoped Caixa would become a “major player” in the Brazilian regulated betting market.

Vieira estimated revenues of between BRL2 billion and BRL2.5 billion in 2026, Caixa’s first full year in operation.

Caixa’s authorisation to operate in the market was formalised through Ordinance No 1,665, issued on 29 July this year. The licence encompasses three brands, named BetCaixa, Megabet and Xbet Caixa.

This figure includes its 50% share in the US-facing BetMGM business, although the operator did, for the second time, break its earnings down to also exclude its US figures.  

Ex-US NGR was up 4% or 5% cc, assisted by a 10% NGR uptick in the CEE region. 

UK NGR was up 8%, in line with expectations the operator said, with online (up 15%) largely driving the uptick. This was down to “growth in players’ values driving strong volumes and further market share gains”, Entain said.  

Notably NGR in Brazil was down 10% year-on-year during the period due to unfavourable sporting results which offset 14% volume growth.  

During the earnings call on Wednesday, Group CFO Rob Wood said that, despite this drop in revenue, the company is “excited” by Brazil’s potential.  

Wood dubbed the Brazil results as “genuine bad luck from sports results” as the market has a high football mix and was impacted by both Champions League and local league results.  

Wood insisted that, despite the dip, the market was “trading on the right side of expectations on a volume basis”.  

Impact of tax hike in UK  

When asked on the earnings call about mitigating the impact a possible remote gambling tax increase could have in the UK, Entain CEO Stella David warned a number of business areas would take a hit. 

“There are a number of levers we could pull which include being less generous on bonusing, odds [could] be not quite as good, a reduction in marketing. These are all things that one does to mitigate against unwelcome tax increases,” David told analysts.  

Adding to David’s point, Wood said the sports sector would take a hit as operators (including Entain) would likely pull back on sponsorship deals and the advertising around them.  

“It doesn’t matter which [market’s] tax [rate] moves, sponsorships, because there is a long pay back and they are about brand awareness, are an obvious place operators will go,” Wood added.  

“The only winner in that situation is the black market because they have less competitive disadvantage. The loser of course is [the] sports [sector].” 

“Obviously we don’t sit on our hands and not plan for those eventualities,” David added.  

The possible increase in remote gambling tax is a hot topic among the sector today and was also addressed in Rank’s Q1 2025 earnings update on Wednesday.  

In April the UK government said it was considering a new tax framework for remote gambling. It opened a consultation and is expected to provide an update on its plans in the 26 November autumn budget.  

Analysts asked Entain execs whether a hike could benefit the operator by speeding up industry consolidation and weeding out smaller competitors.  

Wood said it was certain that smaller operators would be squeezed, and up to 25% of the UK’s iGaming market was made up of tier 3 or smaller operators.  

Entain AUSTRAC proceedings update  

On the operator’s ongoing legal proceedings with Australia’s AUSTRAC, David said she was pleased with the operator’s current compliance framework in the market.  

“I think we’re probably market leading [with the system we have in place now],” David said. She noted there was no clear timeline for the proceedings and the legal process could end up being worked out in court.

It is currently working through a mediation process with the regulator, which “will take as long as it takes”, she said. Mediation started in the summer.

The operator appointed a new permanent CEO for its Australia business in August. Andrew Vouris acted as interim CEO for two months before being made permanent.

Farias proposed PL 5,076/2025 on 9 October, notably just a day after the Brazil Chamber of Deputies withdrew a provisional measure that had intended to raise the gambling tax from 12% to 18%.

Under Farias’ bill, half of the revenue from the 24% tax rate would go towards social security and actions within public health, while the remainder would be split between sectors such as sports and culture.

In his justifications for the bill, Farias noted the huge volume of betting in Brazil, which the bill reported now sits behind just the US and the UK in terms of highest betting consumption, according to a 2023 Comscore study.

“This growing increase in bets and the number of bets is accompanied by several social and economic problems,” Farias’ bill read. “What often begins as a joke can eventually lead to gambling addiction.

“Gambling addiction, in addition to having a strong impact on the mental health of gamblers and their families, can have a significant impact on personal and family finances, leading to significant indebtedness.”

Workers’ Party trying again to hike gambling tax in Brazil

Farias is a member of the Workers’ Party, currently in power and led by Brazil President Luiz Inácio Lula da Silva.

However, the failure of the Workers’ Party to pass any new rules on gambling tax last week has cast major doubt over its ability to fulfil its economic policies.

The previous tax increase bill, PM 1,303, initially intended to raise gambling taxes by 50%.

However, this was scrapped in the lead-up to last week’s vote on the provisional measure, with a retrospective tax programme on licensed operators’ pre-regulation activities also vetoed.

This new bill, PL 5,076/2025, marks a new attempt to try and increase gambling taxes and aid the government’s economic agenda.

“This proposed law increases Brazilian taxation on betting to a higher level than the average for other activities – which is justified by the fact that betting is an activity that is harmful to health and the family economy,” PL 5,076/2025 reads.

“However, it is important to emphasise that, even with the proposed increase, the Brazilian tax rate will still be below the rate of other countries, such as France and Germany.

“Therefore, to try to reduce this epidemic, in addition to all the regulations being developed by the federal government, we must increase taxes on betting so that bets become a little less attractive and so that the country obtains the resources necessary to invest in its healthcare system.”

It has been a somewhat tumultuous start to life for the legal gambling sector in Brazil since the regulated market launched on 1 January this year.

Gross gaming revenue from licensed gambling across the first six months of regulation stood at BRL17.4 billion ($3.2 billion), contributing BRL3.8 billion in tax for the country in the meantime.

In terms of regulation, the sector is facing new potential ad restrictions and was threatened with a retroactive tax programme to make operators pay for gambling services in the 10 years prior to regulation. However, this was withdrawn by politicians this week.

Speaking to iGB prior to the vote, Studart called for policymakers to avoid overregulation, something he believes could result in black market growth.

Studart highlighted an Instituto Locomotiva study earlier this year, which warned that 61% of Brazilian bettors placed at least one illegal bet in 2025.

“These findings show that the combination of high taxation, bureaucracy and advertising bans can produce the opposite of the intended effect: pushing consumers toward unregulated platforms that do not follow user protection rules or contribute to tax revenues,” Studart told iGB.

“Caution is needed when it comes to balancing tax burdens, advertising restrictions and the overall attractiveness of the regulated market.”

A time of great opportunities for Brazil betting

Studart said the current regulation marks a “fundamental step” towards ensuring a safe and responsible licensed betting sector in Brazil.

“The progress of regulation has laid the foundation for a more balanced ecosystem — one that combines innovation with responsibility,” he said.

“Flutter Brazil sees this new scenario as fertile ground for sustainable growth.”

Flutter Brazil was created by powerhouse Flutter Entertainment last year, when it agreed to acquire a 56% stake in NSX, the parent company of Brazil-facing brand Betnacional. The deal was completed in May, with Flutter announcing NSX Group CEO Studart would lead the Flutter Brazil business.

In Q2 this year, Flutter announced its Brazil revenue had grown 144% during Q2 to $44 million.

Brazil was Flutter’s fastest-growing market in Q2, and Studart believes the business is well placed to continue capitalising on the new regulation in Brazil.

In September 2024, the company stated its acquisition of NSX Group had led Flutter to an 11% market share in Brazil, placing it among the top three betting companies.

Flutter Brazil eyes podium position through localisation

Flutter Brazil has approximately 500 employees, focusing on creating the best experience possible for its users by focusing on technology, marketing and customer service.

“The Brazilian market is going through a phase of consolidation that brings great opportunities for operators who invest with seriousness, a consumer-first mindset and a commitment to best practices,” Studart added.

He emphasised the business’ reliance on local expertise, noting: “Flutter Brazil has chosen to maintain a team with the spirit and expertise specifically oriented toward the Brazilian market. With Betnacional as part of its brand ecosystem, the goal is to sustain an operation centred on Brazilian talent and local insight.

“By combining global scale with a deep understanding of local specificities, we aim to actively contribute to the sector’s maturation — offering relevant and safe experiences to users while reinforcing the pillars of trust, transparency and Brazilian culture that underpin our brands.”

The measure was included this week in an amended version of PM 1,303, which sought to address a number of economic policies in Brazil. 

The retroactive tax would have replaced initial plans for a permanent increase in gambling tax from 12% to 18% of GGR. 

This tax rise was introduced in June as a provisional measure. But operators will return to paying the original 12% now the measure has been scrapped.  

The bill was approved by a congressional joint committee on Tuesday, with members voting in favour, 13-12.  

But as it hit its final stage on Wednesday, PM 1,303 failed to gain the required support to pass through Congress. 

The Chamber of Deputies withdrew the bill due to it not having the necessary support to pass. Members voted 251-193 in favour of the bill’s withdrawal.  

Senator Rehan Calheiros, the chair of the joint committee that analysed PM 1,303 on Tuesday, said the bill’s failure to pass could have huge ramifications for Brazil. 

In its amended form, the bill which included other economic measures was expected to generate BRL17 billion ($3.2 billion) in additional revenue over 2026. 

“This is very bad. It ends up affecting public finances. I think it’s regrettable,” Calheiros said. 

What does this mean for betting operators in Brazil? 

The retroactive tax scheme, dubbed RERCT Litígio Zero Bets, was introduced within the bill as a voluntary programme, requesting operators pay a 15% tax on gambling operations carried out between 2014 and 2024, prior to regulation on 1 January this year. 

Operators joining the programme would also pay a 15% fine, leading to an effective total tax charge of 30%.  

Udo Seckelmann, head of gambling & crypto at Brazilian law firm Bichara e Motta Advogados, told iGB this week the programme could have offered legal certainty for licensed betting operators in Brazil, helping them to avoid tax disputes in the future. 

What happens now? 

The expiry of PM 1,303 means retrospective taxes will not happen in the short term, but it is likely they will be revisited in the not-so-distant future. 

The government had expected to raise approximately BRL5 billion specifically from the retrospective tax programme.  

Notably, this would have been equivalent to three years of increased gambling tax revenue.  

With such a significant revenue stream on the table for the government, stakeholders expect the government will review similar opportunities again.  

The matter has been one of the key focuses of the GTI-Bets, a working group created in January between the Secretariat of Prizes and Bets and the Federal Revenue Service (RFB) which aims to ensure the licensed sector is meeting its tax requirements. 

Robinson Barreirinhas, special secretary of the RFB, told the parliamentary inquiry commission on betting in March that the government should seek to recover taxes that went unpaid in the grey market. 

Brazilian iGaming expert Elvis Lourenço believes retroactive tax will be revisited.

“Politically, the [failure of PM 1,303] signals limited congressional appetite for a fast-track fiscal package tying betting taxation to broader revenue measures,” he tells iGB. 

“Expect the government to reframe or refile elements in a new bill/MP, but timing is uncertain.”

Before the vote took place, a previous preliminary measure to increase gambling tax to 18% of GGR was hastily removed from the bill.

The government expects to raise around BRL5 billion ($560 million) from the retroactive tax programme, the equivalent of three years of revenue if the tax rate were to increase to 18%.

Heading into this week, the regulated betting market in Brazil had been prepared for the worst as PM 1,303, which contained the proposals for the 50% tax rate increase, awaited approval.

But the bill’s rapporteur, Carlos Zarattini, presented last minute amendments to PM 1,303 ahead of the vote, including removing the tax rate increase, which some believe did not have enough support to pass through Congress.

However, Zarattini’s amendments also included the creation of the Special Regime for the Regularisation of Exchange and Tax Assets (RERCT Litígio Zero Bets), which would seek to retrospectively tax operators for their activities prior to regulation on 1 January.

Vote approved by 13 to 12

On Tuesday, the amended PM 1,303 was approved by just a single vote in 25, with the bill now headed to both houses of Congress for a second vote, which is expected on Wednesday.

The approval followed a day of political negotiations, including a meeting with Finance Minister Fernando Haddad.

If the text doesn’t receive approval by the Senate and Chamber of Deputies by the end of Wednesday, the bill will lose its validity.

This means operators would go back to paying the 12% GGR tax rate enforced before the provisional measure was introduced in June.

Alongside the changes to the tax proposal, Zarattini’s amendments also included a clampdown on illegal operators.

Under the amendments, internet service providers will have 48 business hours to suspend content flagged as illegal gambling.

Brazil retrospective gambling tax will be ‘voluntary’

Notably, the bill said the retrospective tax requirement (RERCT Litígio Zero Bets) would apply a 15% tax rate on gambling activities between 2014 and 2024. It would also include a 15% fine.

Brazilian iGaming expert Elvis Lourenço explains to iGB that this means that operators would have to pay 15% income tax on the value of any online gambling assets they owned between 2014 and 31 December 2024, the day before the licensed market was launched.

Lourenço says operators would also be subjected to a fine equal to the tax rate, for operating in the grey market. This would lead to an effective total tax charge of 30%.

However, participation in the scheme is voluntary and licensed operators will have 90 days from the publication of the text to join the programme. This must be done through a voluntary declaration of assets.

“We’ve done everything we can to ensure that the funds from bets, which weren’t paid under the previous administration, now reach the public coffers,” Zarattini said following the vote’s approval.

A working group in August estimated that the retrospective tax scheme could raise up to $2.3 billion for government coffers.

Why would Brazil betting operators join the programme?

The voluntary nature of the retrospective tax programme may raise questions over why licensed operators would choose to join.

Udo Seckelmann, head of gambling & crypto at Brazilian law firm Bichara e Motta Advogados, tells iGB it could offer legal certainty for Brazil betting operators moving forwards, helping them to avoid prolonged tax disputes with the government.

“Voluntary participation might limit future liabilities, demonstrate good faith toward regulators and stabilise relationships with authorities,” Seckelmann tells iGB.

“However, many operators may question why they should pay retroactive taxes at all, since they entered the market under different legal and fiscal rules.”

Lourenço agrees it could offer licensed operators a pathway to legitimising past undeclared assets or profits, although he believes operators who deem retrospective taxes to be unconstitutional could threaten legal challenges rather than joining the programme.

Lourenço warns the proposal is still subject to political negotiations, with the potential for approval or further amendments, as well as the lapsing of the bill altogether.

Do operators win or lose from the amendments?

While the removal of the tax rise is a positive for operators, those companies that operated prior to regulation may feel uneasy about reporting prior undeclared assets.

Seckelmann suggested the proposal could raise concerns among those that entered the market under clearly defined tax expectations, which made no mention of this policy.

“Applying retrospective taxation could undermine legal certainty and investor confidence, discouraging compliance and future investment,” Seckelmann adds.

“A fair and forward-looking approach would be far more beneficial for the development of Brazil’s regulated betting market.”

On the other hand, Lourenço feels the amendments bring “greater clarity and predictability” to the Brazilian market, which is a positive development in terms of regulatory stability.

“For operators that generated profits in the pre-regulation period, it provides a clear voluntary route to settle potential liabilities,” Lourenço says.

“For those that operated at a loss or break-even, there may be little or no taxable base to declare, making the programme less relevant.

“Separately, operators that consider any retroactive taxation unconstitutional retain the option to litigate.”

If PM 1,303 passes, Seckelmann says he hopes the industry will actively participate in public discussions to ensure the measures are fairly implemented.

“If the PM is approved with such proposal, operators should analyse the fiscal impact, engage with industry associations and prepare for regulatory or judicial developments,” Seckelmann declares.

Some have estimated the black market could account for up to 70% of the total betting sector in Brazil but, speaking to iGB in a recent interview, Flood believes it is closer to 15%.

While many operators and other industry stakeholders highlight illegal operators as their main concern, Flood and Superbet maintain that their strong start in the market is their main area of focus.

“I don’t wake up every day thinking about the illegal market,” Flood tells iGB. “The competitive intensity would be what wakes me up every day, or what I think about when I wake up.

“I think there’s a lot of data out there that suggests that it’s quite meaningful in terms of total size. I think there’s ways that that gets big and scary when people use deposit volume to size that market.

“In actual terms of maybe revenue capture, which is a better marker of what players are spending, I think it’s a good bit lower than most people’s estimates.”

However, Flood does say he is concerned about the threat the black market poses for players in terms of player protection standards.

Superbet looking to maintain podium position

Superbet has enjoyed an impressive start to the regulated market in Brazil, ranking among the top three licensed operators for market share, according to H2 Gambling Capital’s data.

Flood has a “high degree of confidence” that Superbet is currently in a firm podium position. He also believes the company is closing in on second place.

Like many, Flood expects consolidation in Brazil as the market matures. Three top brands are expected to dominate the market as smaller operators fall away due to high costs and lack of competitive edge against Superbet, Betano and Bet365.

“What we see is there’s going to be a wave of consolidation at some point in the market as the unit economics of competing get a bit harsher,” Flood continues. “High tax burdens, the cost of advertising, you see some sponsorship prices going through the roof.

“It’s incredibly expensive to raise awareness in Brazil about a brand and to build trust. We see that probably some of those smaller brands may fall away at some point in time and the market will probably be dominated by three big players, that would be our estimate. We would hope, and are quite confident, that we will be one of the three.”

Localisation key to Superbet’s success

Prior to 1 January, there was some speculation that international brands may struggle to get a foothold in Brazil, with local operators winning out due to localisation and an enhanced knowledge of their home country’s diverse culture.

But Superbet has invested heavily in local talent, deepening its connection with Brazilian bettors.

“If you were to ask why we’ve been successful, I would say it’s because we’ve invested in finding local people to really help us connect with the Brazilian audience, the Brazilian fan base,” Flood explains.

“That goes deep into how we communicate with customers, even the brand tone, these types of things.

“You cannot take a European proposition and just stick Brazilian flags or change it into Portuguese and put it out there to customers. You really have to find ways to connect.”

Superbet’s investment has extended to sponsoring the 2025 Rio de Janeiro Carnival and Série B, the second-highest football league in Brazil. Additionally, the club is also the front-of-shirt sponsor of top-flight clubs Fluminense and São Paulo.

“The Brazilian fan base is so passionate about sports and so emotionally involved in it, that there’s just different ways to connect,” Flood says. “And we’ve brought that to life.

“But it’s not just putting a badge on that shirt. It’s how we’ve brought that to life in terms of the activations. They are ways for us to connect with those local customers and local audience in a much, much deeper way.”

Superbet Brazil marketing investment to continue

Flood says Superbet has “definitely” achieved what it sought from its initial marketing investment in Brazil.

“When you look at the brand we’ve built in such a short time in Brazil, it’s probably one of the things I’m most proud of,” Flood continues. “That’s testament to the local marketing team that we’ve built out, who make all these decisions day to day.

“When you look at our brand awareness, it’s gone incredibly well. We think that’s what’s translated into what we [believe] is a clear number three in the market at this point.”

This investment in marketing will continue, according to Flood.

“We’ll definitely keep a portion of our investment efforts in this space, because of how effective we’ve found it to be,” Flood concludes.

“We do think it’s part of our superpower of connecting with the local customers and how well we’ve executed in those spaces. For the foreseeable future, we’ll continue to pursue that.”

Back in June, the Brazil government published a provisional measure raising the tax on operators to 18% of GGR, from the previous 12%.

PM No 1,303 is set to be voted upon by the provisional measure’s committee on Tuesday, when politicians will decide whether to make the tax rise permanent.

The vote was supposed to take place last week but was twice postponed. The deadline for the tax to be approved by the committee and the Senate and Chamber of Deputies is this Wednesday.

The tax increase has caused widespread concern among the industry and, ahead of Tuesday’s vote, the IBJR has again warned that the tax rise risks boosting black market activity.

This could lead to hugely damaging consequences for players, who will not receive the same levels of protection in the black market as they do from the licensed operators who follow Brazil’s regulations.

The IBJR assesses PM 1,303 “exposes not only the sector, but also bettors to increasing risks of migration to clandestine operators”.

The association is also calling for digital platforms such as social networks and search engines to take a harder stance on illegal betting sites, with the “same rigour already applied to other illicit content”.

Tax rise risks affecting investment into Brazil’s betting sector

Additionally, the IBJR believes the 50% rise in the tax rate at such an early stage of Brazil’s regulated betting sector will lead to hesitation regarding investment into the market.

Brazil’s licensed betting sector launched on 1 January and, alongside this tax rise, the government is also weighing up whether to implement further restrictions on advertising.

“Abruptly changing taxation, increasing the contribution rate on gross revenue from 12% to 18% just eight months after the regulation was enacted, creates legal uncertainty, undermining the confidence of companies that have invested in the country,” the IBJR said.

“This instability threatens not only the continuity of operations but also the credibility of the business environment in Brazil.”

IBJR searching for new executive president

In September, the IBJR announced that its executive president Fernando Vieira was leaving his role in pursuit of a new professional opportunity.

Vieira had been in the role since March, having first joined the IBJR in October 2024.

Over his tenure, Vieira conducted important work in fighting the black market, which is often identified as the primary concern by licensed betting operators in Brazil.

The IBJR praised Vieira for his “decisive contributions” and the trade body is now searching for his successor.

André Gelfi, one of the IBJR’s founders and managing partner of Betsson Group in Brazil, is serving as interim executive president following Vieira’s departure.

Last November, the Supreme Federal Court in Brazil upheld an emergency measure to ban gambling using social welfare proceeds.

Then in April, SPA chief Regis Dudena confirmed the ban was incoming. However, legal assessments of measures were needed before any ordinance could be published in order to formally introduce the total ban.

On Wednesday, the SPA published Normative Ordinance No 2,217/2025 and Normative Instruction No 22, regulating the participation of beneficiaries of the Bolsa Família and Continuous Benefit Payment programmes in fixed-odds betting.

Notably, the ban completely prohibits social welfare beneficiaries from betting – something that goes beyond the initial ban on betting with direct social welfare proceeds.

Dudena believes the ban will protect Brazilians from betting beyond their means, noting in a Wednesday statement: “To ensure compliance with the Supreme Court’s ruling, it was necessary to develop a robust technical tool, carefully ensuring that the measure guaranteed the protection of the rights involved.

“Protecting citizens, their security, their rights and their personal data are always objectives of the Brazilian government.”

Dudena had previously warned the ban on just the use of social welfare proceeds for betting would be difficult to implement.

It was reported by the National Secretariat of Citizen Income (Senarc) that only 1% of Bolsa Família households use the programme’s physical card. The other 99% rely on the linked online bank account, which can also receive wages and other payments.

How will the ban work?

A database of those receiving benefits from social welfare programmes has been created. Operators must consult the database during their checks, referencing player registrations and logins.

Additionally, betting operators must also consult Sigap, Brazil’s betting management system, to crosscheck bettors’ Individual Taxpayer Registry numbers to verify which users are included in the database of social welfare beneficiaries.

This process must be carried out at least every 15 days for all users registered in an operator’s betting system.

If they are included on the database, operators must block their registration, close their account and return any deposited amounts to the account holder.

The rules came into effect with the publication of Normative Ordinance No 2,217/2025 on Wednesday. Operators have up to 30 days to implement the ban.

Responsible gaming ordinance amended to include ban

In enforcing the measure, the SPA amended Normative Ordinance No 1,231, published on 31 July 2024, relating to responsible gambling regulations in Brazil.

Before closing a bettor’s account, operators must inform the user of the ban via email, messaging applications, SMS or other available means within one day of receiving confirmation from Sigap.

The operator must also inform the user they are able to voluntarily withdraw their funds within one day of the consultation, with a further two-day period allocated for the withdrawal.

If unclaimed within 180 days, the money will go to the Student Financing Fund and the National Fund for Public Calamities, Protection and Civil Defence.

If a user’s CPF number is removed from the Prohibited Persons Module on Sigap, they will once again be allowed to bet.

However, operators are prohibited from any targeted advertising or directly notifying such users about the possibility of readmission into their betting systems.

Beyond the 30-day limit for implementation of the ban, operators have 45 days from the Normative Instruction’s publication to cross-reference its list of registered bettors with Sigap’s prohibited list for the first time.

Any operators failing to comply with the ban will face the sanctions outlined in previous ordinances.

These could include licence terminations or suspensions. Additionally, they could face a fine of between 0.1% and 20% of their proceeds over the year prior to proceedings starting. This fine cannot exceed BRL2 billion.

Bolsa Família ban splits opinion

The ban has certainly been divisive in Brazil.

For instance, the National Association of Games and Lotteries (ANJL) sent a note to the SPA in October, taking issue with the complete ban on social welfare beneficiaries from betting.

According to the ANJL, this contradicts the Supreme Court’s initial decision on the matter, which only banned users from betting with their welfare proceeds, rather than banning them from gambling entirely.

Luiz Felipe Maia, founding partner of Brazilian law firm Maia Yoshiyasu Advogados, previously told iGB the ban could infringe upon the civil rights of Brazilians.

“What we’re saying is ‘Okay, if I am in a situation where I need welfare, I cannot decide where I’m going to spend my money, so I have limited freedom’,” Felipe Maia said.

“Either you give them stamps and say, ‘Okay, these stamps are for food and you can only use those for food’, or you’re giving them money and you’re allowing them to decide what they’re going to do with that money.”

Ed Birkin, managing director of H2 Gambling Capital, also warned that while the ban is well intentioned, it could lead to increased black market activity.

“There may be some who say, frankly, you should spend money on what you want,” Birkin told iGB. “But if you’ve been given benefits for a certain reason, then that’s it.

“But this idea that they can stop them betting; unless they’re able to really go down to restricting almost what they can spend it on [and say] you cannot spend it with a legal betting operator, they’re just spending with the illegal ones.”

However, the Brazilian Institute of Responsible Gaming (IBJR) has thrown its support behind the ban, believing it’s another step in the right direction of protecting vulnerable people in Brazil.

It has been an intriguing period for the LatAm gambling sector. Brazil captured most of the headlines with its regulated online market launch this year, following on from that of Peru 12 months ago.

But despite the nascent regulations in those countries, already the regulated sector is facing increased pressure from new measures, with a new consumption tax in Peru. Meanwhile Brazil has also provisionally increased its tax rate, with additional ad restrictions also seemingly on the way.

While Gomez understands new regulations aren’t perfect and need to adapt, she also hopes for more time to be given by regulators to observe how the market plays out before making drastic alterations.

“What we as a company, and I think most companies, want to see is stability,” Gomez tells iGB. “I think that’s very important from a government to be able to provide that kind of stability to companies.

“Obviously, every new regulation is not perfect. Every new regulation will need some amendments. That will happen, that’s normal. But they should wait to see how the market is working, and then give some time to talk with operators.

“I think that as a new market, yes, they should let the market establish first before starting with all the changes.”

The risk of overregulation

For Gomez, regulators need to converse with operators to listen to their concerns of overregulation. Her fear is that this overregulation could have the potential consequences of increased black market activity.

This has been a particular fear in Brazil, where the government has issued a provisional measure to increase the tax rate from 12% to 18%. Alongside the approval of a bill to introduce new ad restrictions such as watersheds, this has led to major trade bodies sharing concerns over players and operators being driven into the black market.

“I do think that there is a risk of overregulating and I really hope that doesn’t happen, because sometimes you want to cover multiple topics, but you first need to understand the operation,” Gomez continues.

“You need to let the market grow. You need to talk to the companies and understand how the operation is working.”

Gomez says the regulator in Peru, Mincetur, has been successful in discussing regulation with operators, particularly the introduction of a 1% consumption tax on bets this year.

This discourse is something she hopes to also see with the Secretariat of Prizes and Bets in Brazil.

Gomez adds: “We really look forward to having meetings with the regulators to show them our best practice in other countries, but also to ask them, ‘So, how can we comply with this? We have this situation we don’t see is in the law, can we handle it this way?’

“And that’s the way that we want to move forward, because then you understand if the regulator sees this, then this is how we’re going to comply.”

‘Business as usual’ in Brazil for KYC after tough start

During the first three months following the launch of Brazil’s regulated online market on 1 January, many operators voiced their difficulties in transitioning players to licensed platforms.

This was largely down to players not understanding the importance of KYC processes such as facial recognition technology, which have been mandated by regulation.

While Gomez says that it is largely “business as usual” now in Brazil in terms of KYC, Stake also experienced troubles with KYC in the early stages of the year.

Education has been crucial in that respect, with Stake seeking to help players understand that KYC is for their protection.

“At the beginning, customers were very worried about data protection, or ‘What are you going to do with my documents? Or what are you going to do with my data’? But we explained to them, ‘This is for the protection of your account or the information that you’re providing to us, and also for us to verify your identity’,” Gomez says.

“Being an online gambling [operator], this is one of the highest priorities. You need to be able to verify the identity of the customers playing on your platform.”

That education extends to within Stake’s internal teams, with Gomez’s responsibilities including the creation of guidelines for other departments to educate customers on certain KYC situations.

Stake optimistic in LatAm

Gomez is keen to emphasise that, despite regulatory instability in LatAm, there is still an exciting future in store.

“I think the LatAm market obviously has a lot ahead and it’s obviously the place to be right now, 100%, in comparison to other markets,” Gomez concludes. “These are new regulated markets.

“So it’s a very good market and, being newly regulated, it’s very nice to be able to start fresh operations, and establishing those relationships with the regulators and basically build a reputation in LatAm.”

In August, Esportes Gaming Brasil launched its new LOTTU brand, which will operate alongside its existing Esportes da Sorte and OnaBet brands in the newly regulated Brazil online gambling market.

The new platform will offer faster navigation, better customisation options and an improved user journey for players, powered by a new in-house platform.

Filho believes LOTTU fills a gap in the hugely competitive Brazil gambling market, offering a highly customisable, dynamic and interactive experience for bettors.

With this enhanced user experience, Filho hopes LOTTU will soon become one of the top brands in Brazil, consolidating Esportes Gaming Brasil’s position as a major gaming group in the market.

“LOTTU was built to evolve with the market,” Filho tells iGB. “Our vision is that, in the next five years, it will become one of the leading platforms in terms of innovation, personalisation and digital engagement.

“We will continue investing in technology, data intelligence and interactive features to keep LOTTU ahead of the expectations of Brazilian users.”

How will Esportes Gaming Brasil differentiate LOTTU?

The launch of LOTTU may raise questions over how exactly Esportes Gaming Brasil plans to differentiate the new brand within the market.

Esportes Gaming Brasil has now reached the maximum of three brands permitted per licence with LOTTU, raising a further question of how it will differ from the company’s existing Esportes da Sorte and Onabet brands.

But for Filho, each brand holds its own identity, with LOTTU designed to complement the portfolio, rather than directly compete with its existing brands, by catering towards distinct player profiles.

“Esportes da Sorte is our institutional brand, with a strong presence in sports and cultural sponsorships,” Filho continues. “OnaBet connects with its audience creatively, through digital campaigns and influencers.

“LOTTU, on the other hand, was designed to be bold, fast and interactive, with a complete focus on user experience.

“All brands coexist complementarily, without direct competition between them. It’s a strategic segmentation. This way, we can reach different profiles of bettors while maintaining the identity of each brand.”

LOTTU created from the ground up

LOTTU’s new in-house platform has been designed to deliver players a smoother user experience and greater adaptability.

This was a months-long process for Esportes Gaming Brasil, involving planning, testing and adjusting the LOTTU product until it was ready to deliver true value to bettors.

“Creating a brand from scratch requires strategic vision, dedication, an eye for technology and understanding consumer behaviour,” Filho says.

“The biggest challenge was developing a platform that combined performance, aesthetics and innovation, without compromising on security and responsibility.”

Filho believes LOTTU will tap into the Brazilian audience’s desire for dynamism and engagement, especially through its real-time promotions, dynamic layouts and the ability for player experiences to be personalised.

Esportes Gaming Brasil’s overall market position

Data from H2 Gambling Capital currently ranks Esportes da Sorte as the fifth-biggest brand in Brazil, with Onabet approximately 43rd.

The expectation from many is that the Brazilian online gambling sector will consolidate, with Christian Tirabassi, founder and senior partner of M&A advisory firm Ficom Leisure, previously telling iGB he predicts 10 to 12 operators will dominate the market.

Filho is confident Esportes Gaming Brasil will be in that mix of leading operators.

“It is natural that regulation will lead to a consolidation process,” Filho explains. “Esportes Gaming Brasil is already prepared for this, as we have a solid operation, three regulated brands and responsible management.

“We are keeping an eye on potential market moves, but we are confident that our well-structured base positions us as leaders in this process.”

LOTTU will play a key role in securing Esportes Gaming Brasil’s place among the chief operators in Brazil.

“We believe that LOTTU will play a key role in this process, helping to expand our customer base and further consolidating the group’s position as a leader in the regulated sector in Brazil,” Filho concludes.

“We always work with ambitious and sustainable targets to continue growing solidly and responsibly.”

Last week at SBC Summit Lisbon, a panel discussed the challenges of meeting stringent KYC rules, particularly in the newly regulated online gambling market of Brazil, where tough measures hindered operator growth in the licensed sector’s early days. 

Esportes Gaming Brasil CBO Hugo Baungartner, Stake compliance director Barbara Teles and Betboom compliance counsel Laura Beatriz de Souza Morganti agreed that local KYC providers had been the most suitable option for gambling operators in Brazil, largely due to an increased trust and understanding of local players.  

“When we knew that we had to do the process of KYC in Brazil, I saw a movement of international companies and local companies trying to provide the solution for the operators,” Baungartner said.  

“What I’ve heard is the tools that are not Brazilian were kind of complicated to work with. In our operation, we use a Brazilian third-party solution and, of course, the ones that we trust. Not everybody is trustworthy.” 

Third-party aspect crucial in Brazil 

Teles agreed with Baungartner’s decision to opt for a third-party solution, saying such an important process should be left to experts outside the business. 

“We are in the entertainment industry,” Teles explained. “We are not a KYC supplier. 

“Trusting third-party KYC suppliers, especially in Brazil, it is a better solution than to provide it yourself. We don’t know yet a lot of things, because we only have been in the regulated market for nine months.” 

Morganti echoed the sentiment: “Our main service is the betting experience, so we have to focus on that. Delegating the difficult part and the very technical part seems to be a better solution.” 

Education vital to KYC success for gambling operators 

A major pain point for operators, especially in the first three months of regulation, was customer confusion over the importance of KYC. 

Pre-regulation, little information was required from bettors. But as of 1 January, players had to provide extensive personal information and facial recognition to operators.

Education among players has been crucial to ensure they understand the importance of KYC for their protection. 

“That’s something we all went through between December and January,” Baungartner continued. “From the first of January, they need to complete everything before making first deposit.  

“It was difficult, of course. We had big friction [points] in January. Everybody’s traffic went down. Month by month we communicated that they have to complete 100% of the KYC – otherwise they cannot make [an account].” 

The education goes both ways, Morganti explained. 

“I think it was a good opportunity for everybody,” Morganti said. “Right now, we are educating [players], but we are being educated too, especially on what is the hardest thing for the client to do. 

“We also have to educate ourselves on making their lives easier. So this has been challenging, but this has been good because a lot of new tools are being discovered.” 

Staying one step ahead 

As to be expected, operators have needed to remain vigilant to prevent Brazilians from circumventing KYC requirements. 

“Brazilians are very creative,” Morganti added. “The KYC providers should anticipate what can happen, what they can do to [prevent] fraud – for example, a proof of age, a proof of likeness. We do have that in Brazil.” 

Operators will have to try and stay one step ahead of those looking for ways to bypass KYC, Teles believes. 

Teles has looked to other jurisdictions to learn from and collaborate on KYC, as well as Brazil’s incoming self-exclusion scheme, which is expected to be live by the end of 2025. 

“In Brazil every day we see a new challenge being assumed,” Teles concluded. “We have to be more creative. 

“We have an opportunity to learn from the other countries. We have an opportunity to develop new tools and everything. 

“If we can share [data on] the self-excluded [players], we can put all of the athletes together that cannot bet. If we put [that information] in the same database, everybody will be safer.” 

Vieira joined the IBJR in October 2024, before becoming the trade body’s executive chairman in March this year.

He is leaving to pursue a new professional opportunity in another sector and the IBJR has already begun the process of selecting his successor.

In the interim, current director and advisor André Gelfi will take on the role of executive president. Gelfi is one of the IBJR’s founders and also holds the position of managing partner of Betsson Group in Brazil.

In an IBJR statement on Friday, Vieira said it had been an “honour” to lead the IBJR during such a monumental time for the Brazilian betting sector, which launched its online market on 1 January.

“It was an honour to lead the IBJR at this historic regulatory milestone,” Vieira said.

“I am proud of the role we played in protecting consumers and strengthening the industry’s credibility. I remain confident that the entity will continue to advance this mission.”

Vieira and the IBJR’s fight against illegal gambling

Much of Vieira’s work during his time with the IBJR centred on the illegal market, which is proving to be perhaps the biggest concern for licensed operators in Brazil.

The IBJR expressed its gratitude for Vieira’s achievements in the fight against the illegal market, describing him as a “key figure” in the battle.

Vieira was a key opponent of the Brazil government’s approval of a provisional measure increasing the tax rate on operators’ GGR from 12% to 18%.

The IBJR estimated this could lead to the illegal market’s share of the total sector increasing from 50% to 60%.

In June, Vieira told iGB: “The only way operators will be sustainable in Brazil is to increase the channelisation level and, for that, the fight against the illicit market becomes even more important.”

Last month, the IBJR launched a campaign consisting of ads on radio and TV, as well as social media and airport billboards, which it hopes will push bettors towards licensed offerings.

It has also launched the BetAlert website, which allows players to input the URL of any betting site to find out whether it’s licensed or not.

In the IBJR’s statement announcing his departure, Vieira said the body’s work against the illegal market had “yielded important achievements”.

Edward Chandler: LatAm is no longer a frontier. It’s the proving ground for the next era of payments. In iGaming especially, operators face the toughest conditions anywhere: fragmented regulations, diverse payment preferences and players who demand speed, trust and transparency.

The winners over the next five years will be those who can scale with precision delivering localised methods, frictionless onboarding and instant payouts while staying ahead of regulatory shifts.

At OKTO, our vision is to be the most trusted payment partner for these operators. That means building differently: AI-native at every layer, precision-engineered infrastructure that turns complexity into competitive advantage and an obsession with merchant outcomes.

When we do the structural, unglamorous work others ignore from reconciliation to liquidity orchestration we give merchants the freedom to grow faster, safer and smarter.

The LatAm market is crowded, especially so for payment players. Tell me about OKTO’s ‘Precision Mode’ and how it gives you an advantage that sets OKTO apart in LatAm?

Chandler: Precision Mode is about excelling at the details most players in this industry overlook. We build for the toughest environments, where uptime, compliance and settlement speed are not nice-to-haves, they’re the difference between winning and losing.

In LatAm iGaming, that translates into real-time settlement, AI-driven risk and reconciliation and infrastructure optimised for both high volumes and regulatory scrutiny.

We deliberately don’t offer every possible method and we don’t try to be everything to everyone; instead, we obsess over the ones that deliver the highest conversion and performance in each market for our merchants.

That’s why our strength comes from being best at the essentials, with pay-ins and payouts that are instant, seamless and compliant; banking and treasury tools that simplify liquidity, FX and reconciliation for even the most complex operators; and settlement that’s real-time and reliable, whether domestic or cross-border.

These are the foundations of Precision Mode and they’re what give our partners the edge to scale faster, safer and smarter across the region.

OKTO describes itself as an AI-native company in payments. How does this translate into practical advantages for merchants in a high-complexity, high-risk vertical like iGaming?

Chandler: Being AI-native isn’t a marketing slogan but our operating model. Over the past months, we’ve been embedding AI into every layer of our platform, and today our teams in every corner of the world are increasingly AI-augmented by default, not exception.

For iGaming in LatAm, this shift will create tangible benefits: predictive fraud detection that stops issues before they reach players, automated merchant onboarding that cuts timelines from weeks to days and real-time parsing of regulatory updates so operators can adapt instantly. In fact, we’ve seen onboarding times shrink by up to 60% and go-to-market speed increase by nearly half compared to traditional processes.

Beyond that, AI is driving smarter transaction routing, more efficient treasury management and even merchant support that anticipates needs rather than reacts to them. This isn’t about adding shiny features. It’s about building resilience into the core of the system. AI is making us faster, smarter and relentlessly merchant-focused, so our partners can compete with confidence in the most demanding markets.

In LatAm, onboarding delays and inefficiencies can cost merchants millions. How does OKTO deliver faster onboarding, smarter operations and resilient performance?

Chandler: We’ve built onboarding to be compliance-ready from day one: fully automated KYC/KYB, local regulatory checks and seamless integration with merchant systems. This means faster go-live without ever compromising trust.

Operationally, we apply the same precision: 24/7 monitoring, intelligent failover systems and infrastructure designed for high-volume, low-latency performance. When the biggest sporting events hit, our merchants know payments won’t fail. Because in iGaming, a delay isn’t just a glitch – it’s a lost player.

“Building differently means we don’t just remove friction; we prevent it before it happens”

Regulatory volatility in LatAm can make scaling a nightmare. How does OKTO’s design approach help merchants expand across borders?

Chandler: Scaling in LatAm is like playing regulatory chess on multiple boards at once. Where most PSPs see volatility as a burden, we see it as a core competency and one of our biggest competitive advantages. Rather than chasing after new rules, we build compliance into the architecture from day one.

Our compliance-by-design philosophy ensures every transaction, payout and reporting process meets and often exceeds local standards. So, when a market like Brazil shifts its payment framework, our merchants can pivot in hours, not months.

That agility isn’t accidental but structural. By embracing regulatory change instead of resisting it, we turn complexity into confidence, giving our partners more time to focus on growth and less time fighting red tape.

What do you do to ensure that the merchant voice drives your product roadmap and your innovation agenda?

Chandler: At OKTO, innovation starts not only with listening but listening with intent. Every merchant-facing team captures operator feedback, which is then funnelled into our Merchant Excellence Pods. These pods bring together engineers, product managers, compliance specialists and merchant leads to turn insights into solutions.

This isn’t a roadmap built in isolation; it’s merchant KPIs translated into engineering priorities. It ensures every feature and every process delivers measurable merchant outcomes.

What impact have OKTO’s solutions had for operators in LatAm so far?

Chandler: The first half of the year wasn’t just about innovation, it was about empowering our merchant partners with solutions that move faster, smarter and further than ever before. In H1 alone, the OKTO platform processed over €6 billion (£5.2 billion) across LatAm, setting new benchmarks for speed, reliability and performance.

Our smart routing engine now allows merchants to optimise by country, bank, method, or even percentage, balancing cost efficiency with conversion. Across Mexico, Brazil, Peru, Argentina and Chile, we launched 10 key local payment methods, supported by real-time global monitoring to ensure uninterrupted operations.

Beyond payments, we expanded into funds and treasury management, domestic and cross-border settlement and FX conversion. All designed to give merchants precision control and compliance at scale.

And the impact is clear: in a business where every basis point of improvement in acceptance rates can translate into millions in additional revenue, our ability to optimise performance isn’t a marginal gain but a competitive breakthrough.

For example, working closely with one of our iGaming partners in Brazil in this direction, fully focused in improving acceptance rates, we achieved by nearly three percentage points within the first two quarters of migrating to OKTO, a shift that directly translated into millions in incremental deposits and higher player retention.

“We achieved by nearly three percentage points, within the first two quarters of migrating to OKTO, a shift that directly translated into millions in incremental deposits and higher player retention for one of our iGaming partners.”

These aren’t isolated wins. They’re proof that our merchant-obsessed engineering and precision execution consistently deliver outcomes that move the needle: higher conversion, resilient uptime and lower costs.

If you had to predict one big disruption in LatAm ecommerce over the next three years, what would it be – and how is OKTO preparing for it?

Chandler: The next disruption will be the convergence of instant payments, embedded financial services and AI-driven personalisation. Players will expect payments to be instant, context-aware and frictionless.

We’ve already seen this transformation in Brazil, where PIX has redefined the market almost overnight, setting new standards for speed and trust while reducing reliance on cards. And the pattern is repeating across the whole of LatAm and beyond. In Mexico, SPEI is rapidly becoming the preferred rail for real-time payments. In Argentina, CVU has unlocked frictionless instant deposits and withdrawals for millions of players. Chile and Peru are following a similar path with their own local real-time schemes. The direction is clear: across LatAm, card acceptance will steadily fall and local payment methods will become the backbone of digital commerce.

This is exactly why OKTO is building differently. Our infrastructure is instant-ready, API-first and adaptable to new local rails but, more importantly, we’re doubling down on what truly drives conversion in this region: local payment methods that deliver speed, trust and compliance at scale.

The operators who embrace this shift away from legacy card rails and toward the real-time, LPM-driven future will own the next era of player loyalty in LatAm. And our job is to make sure they have the tools, resilience and speed to get there first.

Arrest over horse race fixing in UK

A 42-year-old man has been arrested in connection with allegations of fixing horse races in the UK.

The unidentified man is alleged to have committed offences under section 42 of the Gambling Act 2005. This section concerns cheating at gambling or assisting someone else with cheating.

The arrest was part of a joint investigation by Greater Manchester Police and the Gambling Commission. This launched following reports of suspicious betting activity linked to horse races earlier this year.

The commission said it would not be commenting further on the case at this time.

Bragg seeks to allay fears over cyber incident

Bragg Gaming Group has played down a recent cyber incident, saying the issue has been resolved.

Bragg revealed the cybersecurity incident on 16 August. It said that it took appropriate steps to mitigate any potential impact of the breach, working with independent experts.

Bragg said there is no indication that any personal information was affected, nor was there any impact on its ability to operate. It also sought to reassure customers about the security of its game titles.

“The company has experienced no negative impact on its revenue or profitability and does not expect that the cost of responding to the incident will have a material financial impact on the company,” Bragg added.

Playbook Fusion enters Netherlands with Bingoal

Playbook Fusion has made its debut in the Dutch market through a partnership with Bingoal.

The deal will see Bingoal become the first operator in the Netherlands to launch Playbook Football. This real-money virtual football management betting game allows users to build teams, place bets, receive in-game rewards and climb divisions.

Bingoal customers can access the game across both the operator’s casino and sportsbook zones.

“This is a unique concept that offers gamification and persistence our bettors are seeking,” Bingoal Casino Product Manager Dany Salmon said. “We are confident that it will resonate well with our player base across Sports and Casino verticals.”

Games Global opens first live dealer studio in Brazil

Another new market entry comes from Brazil, where Games Global partnered with Spin Gaming to establish the country’s first live dealer studio.

Powered by OnAir, Spin Gaming will deliver live game streaming and technical support to its partners.

The agreement also marks the creation of the first Brazilian academy specialising in training live casino dealers. This, the two companies said, will help generate hundreds of jobs for people in Brazil.

“This landmark deal with Spin Gaming not only highlights Games Global’s unwavering commitment to delivering tailored solutions to local markets but also highlights our drive to support iGaming infrastructure in emerging jurisdictions,” said Ricardo Regner, director of LatAm at Games Global.

Paf lands Finnish Ski Association deal

Paf has signed a long-term partnership agreement with the Finnish Ski Association.

The deal runs through 2030, with Paf serving as the official main partner of the Finnish Ski Association. This will become effective when the new Finnish licensing system enters into force, provided Paf secures a licence.

The agreement covers the national A-teams in cross-country skiing, Nordic combined and ski jumping. It also includes the under-23 and under-20 national teams in cross-country skiing.

In addition, Paf will be an official partner of the FIS World Cup events in Ruka and Lahti, as well as the Finnish Cup in cross-country skiing.

“We are truly excited about this new main partnership with the Finnish Ski Association,” Paf Manager Thomas Näsman said. “Our shared values provide an excellent foundation for building a long-lasting and successful collaboration.”

While online gambling regulation was launched on 1 January this year, land-based betting remains illegal.

This is despite Brazil’s Justice and Citizenship Committee approving PL 2,234/2022, which includes land-based casinos, bingo, jogo do bicho and betting on horse racing.

The Senate vote has been postponed on numerous occasions, most recently in July, but Irajá hopes legalisation of land-based gambling arrives sooner rather than later in order to reap the financial rewards.

“Without a doubt, this discussion is about an economic and social agenda, not just entertainment for the country,” Irajá told Brazilian news outlet ND Mais. “We will create a new business environment in Brazil, which will generate more than a million new jobs for the Brazilian people.

“In taxes alone, there is a prospect of collecting at least BRL20 billion and these resources will be used to benefit the population, divided between the states, Brazilian municipalities, health, education, public safety.”

Could tourism double with land-based casino legalisation?

Beyond taxes and job creation, Irajá also cited enhancing Brazil’s underperforming tourism sector as a reason to legalise land-based gambling.

In 2023, Brazil welcomed around six million tourists. The Dominican Republic, on the other hand, received over 10 million tourists, despite its land mass fitting into Brazil’s around 175 times.

“We’re facing a topic that will boost Brazilian tourism, which is what’s happened worldwide,” Irajá continued.

“Countries that have legalised responsible gambling have doubled their tourist flow in just five years. Meanwhile, Brazil watches all these tourists from Europe, Asia and the United States, visiting Argentina, Chile and Uruguay, but not coming to Brazil to generate wealth, circulate resources within our country and generate foreign currency.”

Irajá also stated that land-based gambling, despite not yet being legal, is already widespread in Brazil.

“The big truth is that bingo, casinos and jogo do bicho, which are activities of Brazilian culture, already operate outside the law, operating in almost all cities in Brazil, in the capitals, in short, on street corners,” Irajá explained.

“And the government does not collect, the Brazilian people do not collect a single cent in taxes, the government does not monitor and we are unable to protect citizens from this game that I call gambling.”

Speaking during the supplier’s H1 earnings call on Thursday, Playtech CEO Mor Weizer said that Playtech’s share of wallet in the LatAm market was between 5% and 10% among its Brazil operating partners, including Betano and Bet365. 

Playtech reported B2B revenue across its LatAm business declined 32% in H1, although this was due to its revised agreement with Mexican operator Caliente Interactive. Colombia’s VAT introduction also impacted earnings, but this was partially offset by the opening up of Brazil’s licensed OSB and iGaming sector during the period.  

Focus on onboarding during Brazil’s first six months of operation 

Within the report, Playtech said it would invest further in the market in the second half of the year. Weizer cited analyst projections for 15% annual market growth, reaching GGR of $17 billion by 2030. 

Answering analyst questions on Brazil, Weiser said Playtech’s operator partners had been impacted by the hugely strict onboarding and KYC processes put in place by the SPA gambling regulator.  

“Brazil introduced some of the strictest onboarding requirements globally, leading to unusually high KYC rejection rates and, as a result, lower-than-expected volumes across the industry in the first half of the year,” Weizer said.  

“Some operators saw an impact of 20%. Other operators saw an impact of 70% on their business.

“Given our strong partnerships with leading Brazilian operators, this has had an impact on us as a B2B supplier. But let me be clear, we see this as a temporary headwind.”

He also highlighted the impact of a new provisional measure which increased the gambling tax rate to 18% of GGR in June.

“I’ll be very open and say there is still impact of the tax because it’s now [been] deducted. From a royalties perspective we are not yet where we need to be but it’s growing,” Weizer said.  

Despite these pain points, the CEO said GGR for its Brazil operations in August was at the same level as before regulations were put in place.  

Huge Brazil deal incoming for Playtech 

The supplier has secured a deal with one of the country’s leading operators, Weizer told analysts, but he did not share any details.  

“I can’t name it as of yet, but we are in advanced stages of discussions with what we believe will be one of the largest operators in Brazil,” he said.  

“They have access to the market and they are very well established in the market, not yet in online sports, betting and gaming but definitely a very significant opportunity for Playtech.”  

On top of this the company is planning to open a live studio in Sao Paolo to support its growth in Brazil.  

Galera.bet structured agreement  

Additionally, Playtech maintains a structured agreement with Brazilian operator Galera.bet. As part of this deal, it holds a nominal cost option on 40% of Galera.bet’s equity. Galera.bet was one of the first operators to be granted a local licence in Brazil ahead of the January launch.

Weizer believes Playtech has the potential to exceed the rate of market growth in Brazil.  

“I truly believe that we laid the foundations for accelerated growth that potentially can be more than the 15% or the market growth. If the market grows at 15%, that Playtech will be able to grow vertically with existing customers, horizontally with additional customers,” he insisted.  

In late August, the SPA released extensive data which revealed the licensed betting market’s GGR reached BRL17.4 billion ($3.2 billion) during H1 2025.  

The data also reported 17.7 million Brazilians wagered with licensed operators during the period, equating to around 8.3% of the total population and, crucially, 10.6% of adults in Brazil. 

This figure has cast doubt on the argument being championed by some politicians that regulation, despite its nascent status, is driving high levels of gambling addiction in Brazil. 

Ed Birkin, managing director of H2 Gambling Capital, believes the data shows player activity is in line with what you’d expect from a regulated online market.  

Birkin says the data “opposes the rhetoric of mass gambling addiction” in Brazil. 

“In the Netherlands, we estimate that ~5.4% of the adult population have accounts with legal operators,” Birkin tells iGB. “By contrast, in the UK ~20% of the adult population has an online betting or gaming account.  

“So really, this puts Brazil around the level that you’d expect for a ’normal’ amount of online gambling. How much of that is problem gambling is a different question, but it certainly flies against the view of a pandemic of gambling across the nation.” 

SPA pushing for data-based regulation 

The narrative that regulated online gambling is causing an addiction pandemic in Brazil has led to a number of movements and Senate bills seeking to restrict the licensed sector. 

The industry is awaiting a vote on whether the government will make a gambling tax rise permanent. Meanwhile, additional ad restrictions are also under discussion.  

The sector has urged politicians to take a data-based approach to regulation and, in the SPA’s H1 data release, its chief, Regis Dudena, echoed those thoughts. 

“From here on the debate on the fixed-odds betting market in Brazil can be conducted with even more solid elements, enabling us to advance evidence-based regulation,” Dudena said. 

Udo Seckelmann, head of gambling & crypto at Bichara e Motta Advogados, describes this as a “positive development” for the sector. 

“For any regulated industry policymaking should be based on evidence and not solely on perception,” says Seckelmann.  

“By making market data publicly available and emphasising its use to support regulatory evolution, the SPA signals it is willing to pursue a more technical and transparent dialogue with stakeholders.  

“This strengthens regulatory credibility and reduces the risk of measures that could unintentionally harm the sector’s competitiveness.” 

The illegal market 

Birkin largely agrees with Seckelmann, noting many lawmakers set regulations based on “idealistic views or prejudices” rather than data-led analysis. 

However, he warns it’s also important to ascertain just how big the illegal market is. 

Estimates on the size of Brazil’s black market vary. H2 Gambling Capital believes it makes up around 30% of the total betting sector, while the Brazilian Institute of Responsible Gaming estimates it is between 40% and 60%. 

“For me, having a base line of a generally accepted illegal market size is key,” Birkin continues. “The number one aim of regulation should be to bring as many players onshore to gamble in a protected and regulated environment.  

“To measure the effectiveness of this, and the impact of existing and proposed regulatory change, you need to be measuring the size of the illegal market and how that’s growing or declining. So releasing legal market data is only part of the job.” 

Data release encouraging for Brazil’s nascent sector 

While some raised questions over why it took the SPA nearly eight months of regulation to release initial market data, both Seckelmann and Birkin believe this is natural and the data shows Brazil is growing as forecasted.  

“The H1 figures published by the SPA are encouraging, as they demonstrate that the regulated market is already consolidating in Brazil,” Seckelmann says.  

“The numbers broadly align with the sector’s expectations regarding both volume of bets and tax collection.  

“What is most important is that these figures confirm the relevance of the regulated market as a driver of economic activity, job creation and responsible entertainment.” 

This transparency, Seckelmann concludes, will strengthen bettors’ trust in the regulated market, perhaps diminishing the appeal of unlicensed offerings. 

“When bettors see that the regulated market is generating significant tax revenues, being closely monitored and contributing positively to society, they are more likely to choose legal platforms,” Seckelmann adds.  

“The publication of data reinforces the legitimacy of licensed operators, while simultaneously highlighting the risks of offshore platforms that operate outside of Brazilian law.  

“In this sense, the SPA’s initiative supports not only public confidence but also the long-term sustainability of the regulated market.” 

Henrique was sentenced on Thursday by the First Disciplinary Committee of Brazil’s Superior Court of Sports Justice (STJD), after being found guilty on a majority vote of intentionally getting a yellow card in a 2023 game between Flamengo and Santos.

It follows an investigation from the Federal Police, which uncovered an “overwhelming number of bets” placed on Henrique getting the yellow card, with all 19 of these bets placed from accounts in the Belo Horizonte region, Henrique’s hometown.

Sportradar submitted a report to the investigation, which flagged the same suspicious behaviour.

Alongside Henrique, four other amateur athletes were also charged, including three of his friends, as well as Henrique’s brother, Wander Nunes Pinto Junior, who was found to be the organiser of the bets.

The three friends were suspended for between six and seven matches, while Henrique’s brother was banned for 12 games. With the sentencing handed down by a lower court, the decision can yet be appealed in front of the full court.

Henrique, who has played two games for Brazil, denied the charges, saying: “I never committed the offences I am accused of.”

Henrique not guilty of deliberately harming Flamengo

Initially, the Prosecutor’s Office charged Henrique with two articles of the Brazilian Judicial Code.

The first was Article 243, which relates to harming his own team, while Article 243-A is acting to influence the outcome of a match.

Following the conclusion of the arguments in the STJD, reporting judge Alcino Guedes announced the acquittal of Henrique on Article 243, saying: “I do not see in the conduct of the accused Bruno Henrique any evidence of deliberately acting in a way that harmed his team.”

But Guedes did find Henrique guilty of Article 243-A, handing down the minimum penalty of a 12-match ban and a BRL60,000 fine.

Henrique’s brother Wander was described by Guedes as the “mastermind” and “coordinator” of the betting, applying the maximum penalty of a 24-match suspension, although he reduced this by half due to Wander being an amateur athlete.

Guedes also granted the Prosecutor Office’s request to send a letter to the Brazilian Football Confederation regarding the decision, which will then be forwarded to Fifa.

The letter will seek to extend the effects of the penalties handed down by the STJD to the athlete’s registration with Fifa so that the sanctions apply internationally.

Notably, Henrique was defended by attorney and Flamengo representative Michel Assef Filho, who reiterated the club’s support for the player over the betting controversy.

“If Flamengo believed that Bruno Henrique took any action to harm the club, I wouldn’t be here,” Filho said. “We’re here because we understand there was no violation. There was no action by Bruno Henrique that could have affected the outcome of the match.”

He believes a permanent committee is required for the government to oversee the transfer of sports betting tax revenue to the appropriate sports entities, especially with the social and economic problems that can be caused by gambling.

Rocco made the proposal on Wednesday at a hearing between the ministries of sport and finance, as well as the chamber of deputies’ subcommittee on sports betting regulation.

At the hearing, representatives and organisations in the sports sector called for greater transparency in the collection and distribution of sports funds.

Rocco highlighted the Brazil government’s failure to collect tax revenue from sports betting in the lead up to the launch of the regulated market on 1 January this year.

“The allocation of resources is a major concern for the ministry of sports,” Rocco told the hearing.

“Betting companies owe a social debt to Brazilian sports, as they have used sports to enter people’s lives and homes. Therefore, this compensation must be appropriate so that we can address the problems arising from betting as a whole.”

What tax revenue does the sports sector currently receive?

At present, 36% of betting tax revenues are allocated to the sports sector, with the ministry of sports receiving the largest share. The distribution breakdown is as follows:

Antônio Hora, president of the Brazilian School Sports Confederation, raised concerns over the accuracy of the resources being allocated.

“We private entities are able to receive the resources, but we have no guarantee that those amounts are correct, due to the lack of transparency mentioned here,” Hora explained.

The Secretariat of Prizes and Bets has looked to address such concerns, launching a public consultation back in June, with the objective of making the allocation of fixed-odds betting revenue “more effective and efficient”.

Football sector’s reliance on betting

Rocco also noted the reliance of football in Brazil on the betting sector, with 18 of the 20 top-flight football clubs having a betting partner this season.

Last month, Betano announced a deal with Flamengo to become the club’s master sponsor. The agreement, the biggest in Brazilian football history, is worth a reported BRL250 million ($45.9 million) a year.

In May, the Brazil sports commission greenlighted a proposal to restrict gambling ads, with the Senate’s subsequent approval meaning it’s now up to the Chamber of Deputies to review the bill.

Advertising during live sporting broadcasts would be banned, as well as the use of athletes in ads, except for those whose career had ended at least five years previously.

With such a reliance on the gambling sector, Rocco believes the debate on betting advertising in football must be a responsible one, to ensure the sport is not harmed.

“Initially, due to a lack of oversight and control, betting houses took all the investment in Brazilian football,” Rocco added.

“Today, football is entirely dependent on betting house resources, which have inflated at least fivefold.”

Since the Brazil online market regulated on 1 January, many industry stakeholders have shared concerns over the prevalence of the illegal market.

Just this week, Genius Sports’ head of integrity for Latin America, Tiago Barbosa, told a government committee that 70%-80% of bets placed in Brazil are illegal.

Birkin believes the size of the illegal market in Brazil is “hugely overblown”, with H2 estimating it’s more likely to be around 30% of the total market.

He warns that overstating the size of Brazil’s illegal gambling market could mislead policymakers into viewing the sector as overly harmful, which may result in stricter regulations on the legal industry.

In his view, operators are looking to deflect from their own shortfalls.

“I think actually, the narrative is being led by a number of operators who are underperforming and it makes it easier to say that the illegal market is bigger rather than they’re just not competing as well in the legal market,” Birkin tells iGB.

Birkin explains the first concerns of the illegal market share standing at 60%-70% were raised in January, when licensed companies were still struggling with onboarding players due to the new KYC restrictions.

According to H2 estimates, the Brazilian market’s January revenue was BRL2.2 billion. By April, the market almost doubled, generating BRL4 billion in monthly revenue.

However, with some still perpetuating the narrative of illegal operators accounting for 60%-70% of the market, Birkin says this doesn’t make sense.

“People are still talking about 60%-70% being illegal,” Birkin declares. “You’ve doubled the size of the legal market, so the illegal market has therefore doubled since January as well?

“It’s just not true or possible. And that would put the total market size at $20 billion, which again is just not true.”

The threat of new restrictions in Brazil

Less than eight months have passed since regulation started, yet already the sector is facing additional regulatory pressure.

A preliminary tax rise on operators’ GGR from 12% to 18% is awaiting a Congressional vote on whether it will be made permanent. Meanwhile new ad restrictions such as watersheds are also seemingly on the way.

While some in the industry have fought those new measures by arguing they will only serve to boost the illegal market, Birkin believes that this point is falling on deaf ears with the government.

“In Brazil, the government doesn’t really care about the legal or illegal market or the split, they just see gambling as a huge social problem,” Birkin explains. “They just sit and go, ‘People are spending too much, we need to crack down on it’.

“Someone told me when the data came out the legal market had hit BRL3 billion in a month, there was a lot of people saying in the news, ‘Wow, that’s a big number that’s just got out of control’.

“It then goes to BRL4 billion in April, and then at that point you say 60% of the market’s illegal. Guess what? You’re saying that’s a BRL10 billion market size in April.

“Now you think the right narrative to protect you and not have them clamp down on your advertising and what people can play is to claim that it’s BRL10 billion? That is just stupid, especially when there is zero evidence.”

Cautionary tale in the Netherlands 

Birkin argues the exaggeration of the illegal gambling market in Brazil could backfire, misleading policymakers into thinking the overall sector is far larger than it is and therefore more harmful to the Brazilian population.

This ultimately could lead to more, rather than fewer, restrictions being imposed on the regulated industry.

Birkin observed a similar situation in the Netherlands, where heavy advertising after the legal online market launched in October 2021 quickly grew the market, but also concerns over gambling harms.

In response to those rising fears, the Netherlands has taken a hardline stance, curbing advertising and introducing higher taxes and deposit limits for players.

H2 now estimates illegal operators account for around 50% of the Dutch market.

“The same thing happened in the Netherlands,” Birkin adds. “There’s a new market, everyone just advertised too much, the market grew, people thought it was too much advertising and they shut it down and put spend limits in. And yeah, the market’s screwed.  

“I think the same thing is going to happen in Brazil, and it’s not as if this story hasn’t happened over and over again elsewhere.”  

Birkin: Brazil licensed industry must take responsibility

Birkin concludes by claiming if the new regulatory measures are implemented in Brazil, licensed operators will be partly at fault.

The top-heavy nature of the Brazil market means if you take the top 19 brands out of the equation, H2 estimates the remaining sites hold an average market share of approximately 0.1% each.

“I think people need to stop blaming the illegal market when it’s because they’re not performing themselves in the legal market,” Birkin says. “They’re not seeing the revenues that they were wanting.

“As an industry, if you get behind this falsehood talk of the illegal market is bigger than the legal market, then it’s just going to lead to more restrictions on the legal market.

“And actually, I think the industry, they won’t like it, but they will have to take some responsibility for that.”

Earlier this month, Flamengo, widely recognised as the biggest football team in Brazil, announced it was terminating its master sponsorship from Pixbet, amid rumours of late payments.

The alleged circumstances around the termination of the sponsorship, which had been touted as the largest in Brazilian football history at around BRL470 million ($87.1 million) over four years, fuelled rumours of financial uncertainty at Pixbet.

It also marked the continuation of a somewhat tumultuous 2025 for Pixbet. The company saw its licence to operate in the newly regulated online Brazilian market suspended and reinstated on multiple occasions because of technical failures.

Has Pixbet overextended?

Market leader Betano has since taken over as Flamengo’s main sponsor in a deal superseding that of Pixbet. Reports suggest the new agreement is worth BRL250 million a year.

According to H2 Gambling Capital Managing Director Ed Birkin, Pixbet holds a market share of 2% in Brazil with NGR of BRL316 million for the six months to 30 June 2025.

With Pixbet’s Flamengo sponsorship working out at BRL62.5 million over six months, Birkin estimates 20% of the company’s NGR was being spent on the Flamengo deal alone.

In comparison, Betano, the “clear market leader” according to Birkin, generated NGR of BRL3.5 billion in Brazil in H1. Although its sponsorship cost is rumoured to be double Pixbet’s at BRL125 million every six months, that equates to just 3.5% of Betano’s NGR.

With Birkin estimating Betano’s pre-tax and post-bonus NGR at BRL19.5 million a day in Brazil, it would take it just 13 days to cover a full year of the Flamengo sponsorship. For Pixbet, it would take 72 days of Brazil operations, even with its Flamengo sponsorship costing half the amount.

In Birkin’s view, that huge disparity demonstrates financial overextension on Pixbet’s part.

“If one part of your marketing budget is 20% of your net gaming revenue, suddenly it doesn’t become a viable business to be spending that much on marketing, unless you’re happy to run at a loss for a certain period of time,” Birkin said.

International brands dominating in Brazil

H2’s current podium positions are all filled by international entrants to the Brazilian market, with Betano followed by Bet365 and Superbet in second and third, respectively.

Prior to the launch of the regulated market, many hypothesised that local operators would dominate on their enhanced knowledge of Brazilian markets and culture.

But Birkin thinks this was overblown, as evidenced by international brands of Betano, Bet365, Superbet and Sportingbet boasting a combined market share exceeding 50%. These brands brought in local talent to chart a path to growth, albeit with the resources of international giants to support their plans.

“The general view I heard when going to Brazil is that you need to understand international operators can’t just come in and do well, and it’s going to be local brands that win out,” Birkin said.

“The fact is, that’s only true if international operators don’t have a local presence.”

Are smaller Brazil operators in trouble?

Back in June, Ficom Leisure founder and M&A expert Christian Tirabassi predicted a top-heavy market in Brazil. He told iGB that 10-12 brands would dominate, with smaller operators hampered by high financial barriers both to entering and remaining in the market.

Despite holding just a 2% market share, Pixbet is the regulated Brazilian gaming market’s 11th-biggest operator, according to H2. Of the 173 licensed brands Birkin and H2 are tracking, remove the top 19 and the remaining 154 hold on average a market share of around 0.1%.

With a raft of operators making less money than Pixbet, Birkin suggests smaller operators could run into similar trouble, especially with tax rises and new ad restrictions seemingly on the way.

Birkin compares the Brazilian market to the US, where a flurry of operators entering the market has since dwindled, with the likes of Betway, Evoke and Unibet exiting in 2024 due to the dominance of bigger companies.

“If the 11th-biggest operator can run into trouble, then so can the 10th and the ninth and the eighth, and so can the 99th, 100th, 110th, 120th,” Birkin said.

Pixbet’s Flamengo gamble doesn’t pay off

Pixbet took a gamble with its Flamengo sponsorship that hasn’t paid off, according to Birkin.

Flamengo launched a new betting brand last year called Flabet, which was managed by Pixbet and featured the club’s branding.

With Flabet holding an average market share of just 0.15%, Birkin agrees the specific targeting towards Flamengo fans disregarded the rest of the brand’s potential target market.

He makes the point that while Brazilian football is incredibly popular in its home country, it doesn’t boast the same worldwide popularity as the English Premier League and other European football competitions.

Despite Pixbet’s troubles, Birkin believes there is still a place for smaller operators in the Brazilian market, provided they maintain a sensible financial approach.

“Bear in mind: Pixbet are the 11th-biggest operator, but you have someone who’s down at 20th who’s maybe less than half the size,” Birkin said. “But if they’ve got better cost control, then it’s a better run business.

“You can run a smaller business than Pixbet, but you just have to have cost control. You can’t be spending BRL125 million a year sponsoring Flamengo. You’re not making that sum of money.”

The online market in Brazil began on 1 January after six months of operators applying for licences and meeting all the strict regulations surrounding the launch.

What does the SPA’s H1 data show?

In its first update on the market’s performance, published on Tuesday, the SPA said 17.7 million Brazilians had wagered with licensed operators during that first six months and 71% of these were men, while 28.9% were female.

Betting was most prevalent among those aged between 31 and 40 (27.8% of the total number of bettors). The 18-25 (22.4%) and 25-30 (22.2%) age groups ranked second and third, while just 2.1% of bettors were aged between 61 and 70.

The bets, placed with 78 licensed operators via their 182 authorised brands, amounted to BRL17.4 billion ($3.2 billion) over H1, with average monthly spending per active bettors standing at around BRL164 a month.

In July, the Federal Revenue Service said it collected BRL3.8 billion in gambling taxes during H1, while the SPA collected around BRL2.2 billion in licence fees, as well as approximately BRL50 million in inspection fees.

The SPA said it will continue to publish frequent data on the market’s performance.

SPA chief Regis Dudena said: “Our goal is, from now on, to periodically disclose the SPA’s activities and the evolution of the fixed-odds betting market in Brazil, fulfilling this government’s commitment to transparency and, above all, reporting to society regarding the responsibilities of the state and private actors.”

Data supports regulation

Early optimism over Brazil’s regulated market performance has been dampened somewhat by proposed regulatory changes.

New ad restrictions, such as watersheds, are currently progressing through parliament, while a preliminary rise to gambling taxes is awaiting a vote by the Congress, which is deciding whether to make the policy permanent.

Many in the industry have warned these changes will boost the black market and are calling for data to be utilised to more effectively assess the damage they could cause.

Dudena echoed these thoughts, saying reports such as Tuesday’s are “crucial” when it comes to potential alterations to the regulations.

“It provides concrete data on regulatory action, addressing topics such as oversight and control, as well as initial figures that reflect reality, not just estimates,” Dudena said.

“From here on, the debate on the fixed-odds betting market in Brazil can be conducted with even more solid elements, enabling us to advance evidence-based regulation.”

SPA notes illegal market progress in Brazil

The SPA’s data also provided an update on the state’s efforts to stamp out the illegal market. Many believe this is the primary issue for regulated operators. H2 Gambling Capital Managing Director Ed Birkin estimates around 30% of the Brazilian betting market is currently offshore.

Since October 2024, 15,463 illegal sites have been taken offline by the National Telecoms Agency, which was tasked by the SPA with removing sites of black market operators.

The SPA itself conducted 66 inspections involving 93 companies, with 35 of those cases resulting in sanctions across H1.

Additionally, the SPA noted 24 financial institutions made 277 reports of suspicious activity to the regulator over illegal betting transactions, with 255 bank accounts closed down. These belonged to individuals and legal entities believed to be involved in offshore betting.

The SPA also requested information from 13 payment institutions over suspicious accounts, resulting in the closure of 45 company accounts.

Further progress was made on advertising for illegal gambling, with 120 cases concluded, which led to 112 influencer pages and 146 social media posts being removed.

In a statement sent to iGB on Friday, Esportes Gaming Brasil said its new LOTTU brand incorporated a number of new features, including interactive tools, real-time promotions and dynamic layouts tailored to different bettor profiles.

The brand is powered by a new in-house platform, built to deliver a smoother user experience and greater adaptability.

LOTTU has in-built responsible gambling functions, including tools to identify risky betting behaviours and direct users to specialised support channels.

With its LOTTU launch, Esportes Gaming Brasil has now reached the maximum of three brands permitted under its licence by the Secretariat of Prizes and Bets (SPA).

The operator is already active with its Esportes da Sorte and Onabet brands, both authorised earlier this year.

Darwin Henrique da Silva Filho, Esportes Gaming Brasil Group CEO, said he expects LOTTU to resonate with more experienced bettors in Brazil, thanks to its enhanced personalisation capabilities.

“LOTTU reflects everything we’ve learned in recent years, but with a real leap in performance and usability,” Darwin explains.

“It is a platform built from the ground up, with a focus on speed, real-time promotions and navigation tailored to different bettor profiles.”

Esportes Gaming Brasil also bolstering its personnel

Alongside its new brand, Esportes Gaming Brasil has also taken steps to strengthen its executive team.

Ana Carolina Luna Maçães was brought in as the company’s new head of compliance, while Rita Cunha was hired as chief growth officer.

Additionally, Hugo Baungartner was appointed as Esportes Gaming Brasil’s new chief business officer and executive director of institutional relations and strategic partnerships in May.

In an interview with iGB at the time, Baungartner said his new role will involve him representing the company before key industry stakeholders in Brazil, such as the SPA and Central Bank.

“Brazil’s current market environment demands prepared and responsible players and Esportes Gaming Brasil is one of the leading names shaping this new landscape,” Baungartner said. “The group is clearly in a phase of consolidation and expansion.”

PL 3,754/2025 seeks to amend several articles in Law 14,790/2023, Brazil’s fixed-odds betting law, implementing a ban on gambling advertising outside the hours of 10pm-6am through radio, television and internet video-sharing platforms.

The bill includes a ban on gambling sponsorships and brand displays at public sporting, cultural, artistic and festival events made accessible to the public.

Additionally, there would be an explicit ban on gambling marketing in schools and universities, with advertising targeted at those aged under 21 also prohibited.

Costa’s bill also proposes a maximum monthly betting limit per player, capped at the equivalent of the minimum wage for one month or BRL1,518 ($276). This would be in place across all licensed operators.

“This project is not just a piece of legislation; it’s a wake-up call against a true social epidemic, which affects, above all, our young people, the most vulnerable, those who should be focused on studying, working and building their dreams, and not trapped in screens that promise easy fortune, but deliver ruin, debt and despair,” Costa told the Senate on Tuesday.

The bill is awaiting despatch. If it is converted into law, the effects of PL 3,754/2025 would come into force 90 days after publication.

Licensed Brazil gambling sector feeling the heat

Costa’s bill is the latest example of the growing pressure on the licensed gambling sector, which only became regulated on 1 January this year.

The tax rate on legal operators’ GGR has been provisionally increased from 12% to 18%, with a Congress vote expected by 9 October on whether to make the rise permanent.

Additional advertising restrictions, which include a watershed similar to the one proposed in PL 3,754/2025, are also undergoing review after being approved by the Senate.

Meanwhile, Brazil’s finance minister Fernando Haddad recently said he would vote to approve a ban on gambling if such a bill were to appear in the Chamber of Deputies.

Costa echoed Haddad’s sentiments in Tuesday’s speech, claiming betting “does nothing good for Brazil”, instead fostering addiction, debt and suicide.

“Not a single cent of the meagre tax these companies collect compensates for the enormous social harm they cause,” Costa said.

“Betting has become one of the biggest tools of emotional and financial manipulation of our time.”

With the licensed gambling sector feeling the squeeze, the industry is concerned that overregulation could lead to adverse consequences, boosting the black market by harming the viability of regulated operations.

Fernando Vieira, executive director of the Brazilian Institute of Responsible Gaming, previously told iGB: “The only way operators will be sustainable in Brazil is to increase the channelisation level and, for that, the fight against the illicit market becomes even more important.”

The AGU announced on Wednesday that it had sent an extrajudicial notice to Meta, the parent company of Facebook and Instagram.

The notice called for Meta to remove ads for gambling sites lacking the required authorisation from the Brazil regulator, the Ministry of Finance’s Secretariat of Prizes and Bets, to operate in the federal online market.

The notice was sent after a search of Meta’s ad library that identified “hundreds” of results for active ads from profiles without authorisation to advertise gambling.

The AGU seeks removal of the illegal gambling ads within 48 hours of the notice being issued, while also instructing Meta to refrain from promoting unlicensed gambling sites in the future.

The notification to Meta reads:

“This is, therefore, a clearly illegal activity (given that these profiles are not authorised by the Ministry of Finance), which may also be linked to tax evasion, money laundering, crimes against consumer relations, fraud and other illegal practices, constituting their advertising as an equally illegal activity.”

Digital platforms liable for illegal gambling ads

In the document, the AGU notes the recent Supreme Federal Court (STF) ruling on Article 19 of the Brazilian Civil Rights Framework for the Internet.

The STF ruling on 26 June found Article 19 to be partially unconstitutional, meaning digital platforms are now presumed to be liable for illegal ads, unless they can prove they acted diligently and within a reasonable time to make the content unavailable.

In the AGU’s notice to Meta, it stated the company’s recent updates to its ad policies that made it mandatory to apply for permission to promote online gambling on its sites still include flaws that must be corrected.

Some ad relief for licensed operators?

This move from the AGU will likely be welcomed by licensed operators in Brazil, who are under fire themselves for their advertising.

In May, the regulated sector was stunned when the Brazil Senate approved a raft of proposed ad restrictions, including a ban on betting ads during live broadcasts of sporting events, as well as a blanket ban on print advertising.

The use of celebrities, such as athletes, artists and influencers, would be prohibited, while advertising on TV, streaming and social media sites and the internet would only be allowed between the hours of 7.30pm and midnight.

Radio ads, meanwhile, would only be permitted between 9am and 11am, and between 5pm and 7.30pm.

It will now fall upon the Chamber of Deputies to vote on whether to implement the measures.

Many in the licensed sector reacted furiously to the proposals, warning they risked further confusing bettors over which sites are legal and illegal, with black market operators set to profit.

The deal had been set to expire in December, although there was the potential for renewal until 2027. The Pixbet brand has been displayed on the team’s shirt since 2022.

The master sponsorship, worth approximately BRL470 million ($87.1 million), was touted as the largest club sponsorship in Brazilian football history.

However, Flamengo announced on Wednesday that it had terminated its agreement with the online operator, following reports of late payments from Pixbet.

After Pixbet became master sponsor of the club in January last year, the club announced plans to establish a Flabet brand that the operator would manage.

However, the Flabet brand will now close, with Flamengo rumoured to be in negotiations with other betting companies to take over the master sponsorship.

In a Wednesday note on its website, the club said: “Clube de Regatas do Flamengo announces that today, after four years of successful partnership, it has mutually and amicably terminated its sponsorship agreement with Pixbet.

“The club thanks you for the partnership and wishes Pixbet success.”

On X, Pixbet said: “Throughout this period, we shared moments that went beyond the pitch, strengthening not only the Pixbet brand and Flamengo, but also uniting hearts and amplifying emotions among millions of fans.

“The bonds built over these four years remain alive and strong. And, as with any great story worth respecting, we believe our paths may cross again soon. Thank you, Flamengo.”

What’s going on with Pixbet?

The two companies cutting ties could indicate Pixbet is experiencing financial difficulties. The operator’s entry into Brazil’s regulated online market has been marred by challenges.

In April, Pixbet’s licence was temporarily suspended by the Secretariat of Prizes and Bets (SPA) over failure to present certain technical certificates.

Pixbet’s licence was quickly reinstated thanks to a federal court decision, although the company claimed the “illegal and disproportionate” licence suspension had caused “reputational and economic damages”, especially in relation to its Flamengo sponsorship.

But Pixbet would again find itself in hot water with the regulator in late May, when the SPA suspended its licence once more. This suspension was for failing to complete security assessments for its betting system.

As was the case in April, a federal court granted a preliminary injunction to reinstate Pixbet’s licence, with the quick decision made to ensure Flamengo didn’t breach regulations by playing with an unlicensed betting brand on team shirts the following weekend.

Flamengo seeking new master sponsor

According to a BNL Data report published Wednesday, both Superbet and Betano, as well as another unnamed operator, have reportedly submitted proposals worth over BRL200 million a season to take over the master sponsorship of Flamengo.

Superbet already sponsors São Paulo and Fluminense, while Betano sponsors the Campeonato Brasileiro Série A, the top-flight league in Brazil.

LatAm continues to be perhaps the hottest region in the gambling world, with Brazil seven months into its regulated online market. Meanwhile tax concerns in Colombia and Peru continue to impact operators’ strategies.

Flutter made vital inroads into Brazil in 2024, acquiring a 56% stake in NSX, the parent company of Brazil-facing brand Betnacional. It has formed a new Flutter Brazil business, which will also encompass its existing Betfair Brazil brand.

The NSX acquisition is already paying off, with Brazil revenue growing 144% during Q2 to $44 million, offsetting a slight year-on-year decline for Betfair Brazil. This decline Flutter attributed to adverse sports results and re-registration friction from new KYC requirements.

With Brazil Flutter’s fastest-growing market in Q2, Group CEO Peter Jackson was asked whether further LatAm expansion was in the company’s plans.

Jackson responded: “When we sit here and evaluate what the opportunities are around the world, we think about Latin America, we think about many markets where we’re not operating. There’s some interesting opportunities there.

“They’re all in the mix as we think about where we’re going to be deploying our capital. Clearly, the team are thinking about other opportunities around the world in Latin America.”

Jackson and Flutter recognise the scale of Brazil’s potential, saying: “We retain a strong conviction that the market opportunity will be very significant, and that those operators with scale and the best product will win the largest share of the market. Our strategy is to elevate our Brazilian proposition.

“We’ve targeted quick wins in product and marketing, which we expect will deliver significant improvements to the customer proposition on both sportsbook and iGaming over the next 12 months, which we believe will place us well for future success.”

Entain ‘on track’ in Brazil

Entain reported a 21% year-on-year uptick in Brazil NGR during H1, in line with the company’s expectations after a successful transition to the newly regulated market.

Brazil was Entain’s fastest growing market outside the US, powered by strong results from the Club World Cup football tournament, which saw record player activity and turnover.

Brazil accounted for 5% of Entain’s H1 NGR, although CEO Stella David conceded the journey had “not always been plain sailing”, with compliance proving difficult as players of its Sportingbet brand had to re-register to satisfy new KYC requirements.

Tax in Brazil also led to a £28 million ($38 million) hit to Entain’s group EBITDA, with David also warning about the potential for black market growth. This warning comes as the country weighs up making a provisional GGR tax rise from 12% to 18% permanent, as well as new ad restrictions.

“I’m just saying there’s a lot of volatility and that means that we have to be agile in our approach to the market to make sure we navigate the right line,” David said.

BetMGM sets sights on 10% market share in Brazil

In August last year, MGM Resorts International partnered with Grupo Globo, Latin America’s largest media company, to launch the BetMGM brand in Brazil.

In its Q2 presentation, MGM reiterated its desire to reach 10% market share in Brazil through BetMGM, believing its deal with Grupo Globo will allow for greater flexibility in regards to marketing and investment.

“Our launch is making great strides as we are seeing all key measures increasing, including strengthening player fundamentals,” MGM Resorts International CEO Bill Hornbuckle said. “Our bullish long-term view of the Brazilian market remains unchanged.”

BetMGM is investing heavily in Brazil, with that spend focused on product in Q1. It will then shift to marketing in Q2 as the business looks to grow its brand awareness in the market.

“[In] Q2, we turned on the marketing with a reasonable level of aggression and we’re very happy about what we’re seeing,” MGM Resorts International Interactive president Gary Fritz explained.

“Player values are strong down there. We see nothing to give us any concern about the TAM and the long-term health in the market in Brazil.”

Betsson reaches record LatAm revenue in Q2

Betsson enjoyed a hugely successful Q2 in LatAm, with revenue in the region up 35.4% to a record €84.7 million ($99.3 million), driven by high customer activity and record deposit levels.

LatAm accounted for 28% of Betsson’s Q2 revenue, having been responsible for 25% of its revenue in Q1, with Peru and Argentina particularly singled out as key growth markets for the group.

“It is gratifying to see how we continue to strengthen our leading market positions in these countries through both strategic and tactical market activities as well as targeted product development,” CEO Pontus Lindwall said.

Sportsbook revenue in LatAm increased from €22.3 million in Q1 to €33.2 million in Q2, offsetting a slight drop in casino revenue from €52.2 million to €51.4 million.

Despite the record quarter in LatAm for Betsson, the company did also note significant headwinds in the region, with further ad restrictions and tax rises seemingly on the way in Brazil. Beyond this Peru and Colombia are also increasing their tax burdens.

However, Lindwall said the company’s view on Brazil hadn’t shifted, saying: “We remain with our view that in any newly regulated market, it’s a little bit shaky initially in terms of competition, marketing spending, potentially regulatory changes.”

Discussing future M&A, Lindwall explained: “We are a careful company. We don’t jump in, we don’t buy the first one we see there. We want the dust to settle a bit and then we will, of course, be ready for both our own expansion and M&A in Brazil.”

Codere Online cautious on Brazil, Mexico performance strong

Codere Online remains hesitant to enter Brazil, despite fellow LatAm market Mexico continuing to prove fruitful for the company in Q2.

Mexico revenue for Codere Online reached €29 million in Q2, 2.8% higher than the €28.2 million reported in Q2 last year, while adjusted EBITDA in the market also edged up from a €0.2 million loss in Q2 last year to a €0.2 million profit.

In the earnings release, CEO Aviv Sher said: “In Mexico, we were successful in growing net gaming revenue despite the 19% devaluation of the Mexican peso and grew our portfolio of active customers in the country by an impressive 36% versus Q2 2024.”

But while the company continues to flourish in Mexico, Sher reaffirmed the company’s caution on Brazil, telling analysts: “We took some of our experience in Spain and took it to Mexico, so we have already proven we are able to replicate our strategy and grow a market.  

“I’m sure that Brazil will come up in this call. To replicate [our model] in Brazil, we would need a lot of money.”

In the company’s Q1 results, Codere Online noted it was pulling back in Colombia due to the impacts of the 19% temporary VAT. Sher reiterated this on the post-Q2 earnings call, saying operations had been reduced in the market “to the bare minimum”.

RSI flourishing in Mexico, but Colombia headwinds remain

Rush Street Interactive highlighted Mexico as a particularly strong growth market in Q2, although concerns persist over the tax situation in Colombia.

Monthly active users rocketed nearly 42% across the LatAm region to 403,000 in Q2, with Mexico proving especially fruitful. Revenue from the market here was up 125% year-on-year, as well as increasing 40% from Q1 this year.

Rush Street Interactive CEO Richard Schwartz expects Mexico to become one of the company’s largest markets, saying: “We are very optimistic and continue to believe that it can be a very significant market for us for many years to come.”

However, the VAT in Colombia continues to prove troublesome, with Rush Street Interactive’s decision to offset the tax with a bonusing strategy damaging the company’s profitability in the market.

This led to Q2 net revenue from Colombia remaining flat, despite Rush Street Interactive’s GGR from the market rising by over 70%.

With the temporary VAT set to expire at the conclusion of 2025, CFO Kyle Sauers believes the company’s profitability in the market will reignite from the start of 2026.

Further LatAm expansion could be coming, too, with the company listing Chile, Ecuador, Brazil and Argentina as potential opportunities to add to its existing markets of Colombia, Mexico and Peru.

Super Group LatAm revenue nearly halves after Brazil exit

Elsewhere, Super Group reported declines in LatAm revenue, dropping to $5 million in Q2 from $9 million in the same quarter last year. Across H1, revenue in the region also fell from $16 million to $10 million.

Super Group attributed this to poor performance in Mexico, as well as the withdrawal of its Betway brand in Brazil.

For Kambi, the regulated market launch in Brazil helped the supplier to increase operator turnover in the Americas by 3.4%, despite a “slower than expected start”.

The Club World Cup proved particularly popular in LatAm for Kambi, driving approximately 80% of bets across its global network.

Reporting its H1 results on Tuesday, this is the first time the London-listed operator provided a breakdown of topline earnings excluding US operations. In this case, group NGR (not counting BetMGM) was up 3% (6% cc) to £2.6 billion.  

Online NGR grew 14% including US and 8% excluding US, while retail NGR remained flat.  

While growth slowed in some online markets like Australia (-7% YoY) and Poland (+2%), group revenue was buoyed by a surprising performance in Spain (+39%), thanks to an effort Entain CEO Stella David described as “awakening a sleeping giant”.  

This, David said, was down to an executive team reshuffle in Spain last year and a reviving of the Bwin brand in the market through a targeted marketing campaign. David said she was confident Bwin could return to a podium position in Spain.  

Mikel López de Torre, former JDigital chairman and digital director for Entain’s Spanish JV Sportium, joined Entain as head of Iberia in June 2024 to lead the Bwin and Party brands across Spain.  

Meanwhile, Entain’s core UK and Ireland (UK&I) segment “outperformed the market”, the operator said, as revenue grew 21% in the six-month period.  

David put this down to growth across volume of players and increased player value. She told analysts once again that product improvements like increased app speeds and a new bet builder offering had positively impacted its performance in the UK.  

Retail remains sluggish, UKGC reviewing AGCs’ impact on operators  

Meanwhile, the UK&I retail business remained flat as revenue decreased 2% compared to last year.  

Despite continued revenue decline across UK retail, CFO Rob Wood told analysts during the earnings call he was happy with the segment’s performance and it had improved slightly in Q2 compared to the first quarter.  

He said there was a continued uptick since “sluggish numbers in Q3 last year” that had coincided with an acceleration in online revenue.  

Wood previously blamed Adult Gaming Centres (AGCs) for stealing market share from retail gaming operations in Q1, but he said on Tuesday the Gambling Commission was taking “a much closer look” at these AGCs.  

Despite slowed revenue growth, he said retail was still positively contributing to online growth. “It’s a pleasurable business for us to run and a really valuable asset,” Wood said.  

“UK retail [employee engagement] scores have never been better and turnover has never been lower.”  

Poland woes down to increased competition on iGaming hopes 

Turning back to online, Entain H1 8% CEE growth was powered by a 14% uptick for NGR in Croatia, but was impacted by flat revenue in Poland.  

When asked what had set Entain back in Poland, David said the market had become increasingly competitive as the sector prepared for potential iGaming regulation. She said heavy bonusing and a tax on winnings had resulted in a challenging period. This was further exacerbated by the prospects of legal iGaming disappearing for now.  

David said the operator would not run a race to the bottom by competing aggressively in the short term. “Poland is a long-term attractive market,” she added.  

Wood said although revenue here dipped, EBITDA in Poland had increased. “Sometimes you have to decide between topline and EBITDA and we’re actually growing EBITDA year-on-year.” He said only two operators were profitable in the market and Entain was number one on the list.  

Entain H1: Brazil ‘on track’ for full-year expectations

Entain’s Brazil business marked its first six months of operation with a 21% year-on-year uptick in NGR. David said that, while the business launched on day one of the market (1 January), the journey had “not always been plain sailing”.  

Compliance efforts had proved a mammoth task as players of the Sportingbet brand had to be re-registered to meet regulatory requirements. David said the operator had seen strong results from the Club World Cup tournament with record player activity and turnover reported.  

While the market is highly competitive, Wood said it was on track to meet expectations for the full year.  

AUSTRAC mediation under way 

Prior to questions from analysts commencing during the call, David addressed the elephant in the room – Entain’s ongoing legal proceedings with Australia’s AUSTRAC. 

Proceedings were initiated in December over “serious and systematic” non-compliance with anti-money laundering (AML) and counter-terrorism financing (CTF) laws at Entain.  

David described a £50 million balance-sheet provision (about AU$100 million) as an accounting measure rather than a specific provision allocated as a potential penalty.

“The provision is purely accounting driven,” she said. Mediation between the two parties commenced in July and is still in motion, David noted.  

There will be no update on the proceedings until discussions have concluded, she added.  

AUSTRAC documents filed in April said the two parties were required to attend a mediation before 4 August and, if the matter is not resolved by then, Entain would need to file its defence by 12 September. 

How much cash will Entain receive from BetMGM this year?  

Cash flow was a hot topic during the Entain H1 analyst call, as Wood noted BetMGM’s plans to return cash to its parents this year, upon reaching a positive EBITDA of $150 million.  

As of the end of H1, adjusted cash flow for Entain sat at £80 million, compared to a deficit of £35 million last year. This is expected to be “broadly flat” for the year.  

When pressed on what the returns from BetMGM could look like in 2025, Wood said nothing had yet been agreed with the JV, but he hinted the amount could easily be calculated by taking BetMGM’s EBITDA guidance for 2025 and deducting its capex, then dividing by two and converting to GBP.  

“To give a feel for it, we came into the year with a good amount of cash on the balance sheet. We’ll probably want to leave a reasonable amount for year-end as well in order to allow for working capital cycles and so on,” Wood said of Entain’s cash flow plans for the year.

Underlying EBITDA across the group hit £583 million in H1, up 11% from last year. Meanwhile, gross profit rose 3% to £1.6 billion.

According to local news outlet Metrópoles, the working group between the Secretariat of Prizes and Bets (SPA) and the government’s Federal Revenue Service (RFB) is discussing the possibility of taxing companies active in the grey market.

This grey market period lasted much longer than expected, with former president Michel Temer first signing online legislation into law in December 2018, with five years passing before the Chamber of Deputies gave the final green light.

With full online regulation coming into force on 1 January this year, the working group, named the GTI-Bets, was announced the following week to ensure the betting sector in Brazil adheres to its tax requirements.

The creation of GTI-Bets seemingly alarmed a number of operators, especially among those who had invested heavily in jockeying for position to gain brand awareness ahead of regulation.

Robinson Barreirinhas, special secretary of the RFB, told the parliamentary inquiry commission on betting in March that the government should pursue the taxes that would have been paid in the grey market.

And it now appears the government will do exactly that, with Metrópoles reporting the retrospective taxes could raise up to BRL12.6 billion ($2.3 billion) for government coffers.

More tax pressure for operators in Brazil

Despite less than eight months having passed since regulation began in Brazil, it appears the gambling sector could soon be facing higher taxes, alongside any retrospective charges.

On 11 June, the government published a provisional measure increasing the tax rate on operators’ GGR from 12% to 18%, a 50% hike.

Initial attempts to generate tax revenue by increasing the rate on financial transaction taxes were scrapped due to political pressure. The government subsequently turned its attentions to the gambling sector to plug the financial gap.

The provisional measure came into effect immediately after its publication. However approval by both the Senate and the Chamber of Deputies is needed before the measure is made permanent.

The tax rise pushes the overall burden on operators to around 50%, with many industry stakeholders warning it’s an excessive rate that risks making licensed operations unviable.

This could aid the black market, with the Brazilian Institute of Responsible Gaming stating the market share of illegal operators could increase from 50% to 60%.

A reality check for Brazil gambling licensees

Robin Harrison tries (and fails) to stem the tide amid Ed’s diatribes in this episode. But this reality check, for Brazilian gaming licensees in particular, is important.

By constantly talking up how prevalent illegal gambling in Brazil is, the industry may be setting itself up for higher taxes, further restrictions on marketing and product. That could ultimately turn the Brazilian illegal market conversation into a self-fulfilling prophecy. 

Right to the Source is on Apple Podcasts!

Crypto casinos overcooked?

It’s similar with the crypto market, with Ed particularly incensed by a widely reported figure that he says is simply unmoored from reality. Want to find out H2’s estimate for the true size of the market? It’s all here for you. 

And we promised you Albania, and we deliver with some cold, hard figures. You’ll hear how the Albanian casino market is performing after a 2018 ban on gambling was rescinded in 2024. Just in case you thought Right to the Source had grown up, there’s also some talk about The X-Files and Uno. 

Sher told analysts that Codere Online had successfully replicated its Spanish strategy in the Central American market and he believes the playbook “can be applied [elsewhere]”. 

“We do think the playbook we have can be applied [elsewhere],” he said.  

“We took some of our experience in Spain and took it to Mexico, so we have already proven we are able to replicate our strategy and grow a market.  

“I’m sure that Brazil will come up in this call. To replicate [our model] in Brazil, we would need a lot of money.”

Mexico reigns for Codere Online 

The operator reported a 9% uptick in NGR in Mexico in H1 compared to the previous year, to €59.5 million ($68 million).

This, Sher said, was helped by a higher level of player activity than usual during a historically weak period of the year.  

“In Mexico, we were successful in growing net gaming revenue despite the 19% devaluation of the Mexican peso and grew our portfolio of active customers in the country by an impressive 36% versus Q2 2024,” Sher said in the earnings release.  

Despite the continued impact of the Mexican peso’s devaluation, CFO Oscar Iglesias said the operator expected the currency to strengthen sooner than previously expected and forecasts the impact will lessen in H2.  

He said he expects EBITDA in the second half of the year to be “strong”.  

Codere monthly actives up in Q2, despite flat revenue 

More broadly across the entire group, NGR was up 4% year-on-year to €111.8 million in H1. This was split 61% iGaming to 39% sports betting.  

In Q2, group NGR was broadly flat at €54.8 million.

Codere Online recorded around 277,000 new customer registrations during Q2, with a 28% conversion rate and cost per acquisition of €218.  

During Q2, monthly actives were up 7% on the previous year to approximately 155,000.

Spain continues to feel impact of increased competition 

In Spain, NGR was flat at €44 million, compared to €44.1 million in H1 2024. Sher said revenue in Spain during the period was once again impacted by the reintroduction of welcome bonuses in 2024, which increased competition across the market.  

He also said the company had taken a more selective approach to customer promotions in Spain, to drive more valuable players and lower acquisition costs.

Codere Online closed H1 with €40.7 million in available cash, up from €35.3 million at the beginning of the year.  

Iglesias hinted the company was considering strategies for expanding either within its current market of Mexico or entering into new markets in the region.  

What’s next for Codere Online in Colombia?

He highlighted continued difficulties in Colombia, due to the impact of the recently implemented VAT, which Iglesias said has increased the operator’s tax rate to almost 50% of revenue.  

Sher said operations had been reduced “to the bare minimum” in the market, to maintain a break-even point.  

Iglesius said the company was undergoing discussions to decide what its next move in the market was, with its performance in Panama mitigating some of the company’s initial losses from Colombia.

Cashback bonuses were trialled with Codere Online customers, with other operators like Stake implementing similar strategies in Colombia to mitigate the impact on players.  

But Sher said the topline impact was significant. Codere does not split out its other markets in its earnings report, but under “other” the group’s NGR was down 3.5% in H1 to €8.2 million.  

In May 2024, Paquetá was charged with four breaches of FA Rule E5.1, with the FA alleging he purposely collected four bookings on Premier League matches while playing for West Ham between November 2022 and August 2023.

Rule E5.1 states: “A participant shall not, directly or indirectly, seek to influence for an improper purpose the result, progress, conduct or any other aspect of, or occurrence in or in connection with, a football match or competition.”

Paquetá, who has played 55 times for his national side Brazil, has consistently denied purposely gaining bookings to affect the betting market.

The FA has now said it’s not been able to prove the match-fixing charges against Paquetá, who was reportedly facing a lifetime ban if found guilty.

The association now awaits written reasons from the regulatory commission on its decision.

Paquetá thanks his team and his family for their support

In an Instagram post, Paquetá thanked his family and legal team, as well as West Ham, for their support during the investigation.

“I can’t say anything more now, but I also can’t express how grateful I am to God and how eager I am to return to playing football with a smile on my face,” Paquetá said.

Although he avoided punishment for match-fixing, the FA did find Paquetá guilty of two breaches of FA Rule F3, for failing to comply with the obligation to answer questions and provide information for the investigation.

The regulatory commission will decide on the appropriate sanction for those charges at “the earliest opportunity”, it said.

What next for Paquetá?

West Ham is reportedly furious with the impact this investigation has had on both the team and Paquetá.

In a statement following the FA’s announcement, West Ham vice-chair Karen Brady welcomed the decision and praised Paquetá for his conduct during the process.

“Despite the incredible pressure on him, Lucas has performed week in and week out for the club, always giving everything,” Brady said.

“It has been a difficult time for Lucas and his family, but he has remained absolutely professional throughout and he is now looking forward to drawing a line under this episode, as is everyone at West Ham United.”

Just hours before the announcement, Paquetá scored in West Ham’s 2-1 pre-season friendly victory over fellow Premier League side Everton.

Earlier this month, it was announced Hanzbet would halt its activities in the licensed Brazil betting market after a clash with its licence holder in Brazil, EA Entretenimento e Esportes Ltda (EA).

But on Monday, Hanzbet announced the company had formalised an agreement to operate alongside BigBet, one of the three brands working under Big Brazil’s licence.

Big Brazil is also the licence holder of the Apostar brand, as well as Caesars Sportsbook.

The companies assert the move will strengthen the brands’ presence in the regulated market and boost the options available to bettors in Brazil.

“This merger represents more than a collaboration between the two companies – it’s a firm step toward strengthening the Brazilian regulated betting market,” Big Brazil/BigBet CEO Rodrigo Cariola said. “We remain committed to compliance, responsible gaming and delivering a high-quality experience for everyone.”

Hanzbet CEO Gabriel Martins added: “We know the credibility HanzBet has earned within the iGaming industry, partners, affiliates and service providers.

“We have always conducted our actions with clarity, seriousness and loyalty. We will continue, now stronger than ever, alongside a great brand like BigBet.”

It’s currently unclear what the merger will entail, although it could potentially mean Hanzbet’s customer base and operations are simply absorbed into BigBet.

The companies say they plan to announce further operational details soon.

What happened to Hanzbet?

Hanzbet claims the EA statement announcing the closure of the brand was published without its consent, with founder and CMO Eduardo Peres stating he and his team had been suddenly excluded from all internal communication channels and decision-making.

Peres published a statement on his LinkedIn, labelling the relationship with EA as a “true operational dictatorship” and alleging the licence holder was intentionally diverting Hanzbet users to another of EA’s brands, BateuBet.

Even more seriously, Peres accused EA of withdrawing liquidity from the company while simultaneously telling customers they had to extract funds from Hanzbet ahead of its closure on 31 July, making withdrawals impossible.

iGB reached out to both Hanzbet and EA regarding Peres’ accusations, but is yet to receive a response from either.

Despite the recent challenges, Peres welcomes the new chapter with BigBet, thanking Big Brazil for its belief in Hanzbet.

“After everything we have been through with the HanzBet case, today we turn around, with our heads held high and strengthened,” Peres said on LinkedIn. “They did everything to bury HanzBet. They forgot that the end only comes to those who give up and that was never our case.”

On 24 July, the RFB released its monthly presentation detailing the total monthly tax collection of President Luiz Inácio Lula da Silva’s Brazilian government.

In comparison, the UK, a much more mature market, generated £1.62 billion ($2.2 billion) in gambling taxes in the six months between 1 April and 30 September 2022.

Collections from the Brazilian gambling sector in June stood at BRL764 million, falling 6.1% short of May’s figure of BRL814 million.

Udo Seckelmann, head of gambling & crypto at Brazilian law firm Bichara e Motta Advogados, believes the figures reaffirm the market’s strong potential for generating significant public revenue.

“I am not surprised by the tax collection figures,” Seckelmann tells iGB.

“While the market is still in its initial phase of consolidation, the data already demonstrates that regulation is a more effective path than prohibition or informality, both from an economic and public policy perspective.”

A key point made by gambling advocates ahead of online regulation was how much tax the Brazilian government could collect from the sector.

Seckelmann feels tax revenues will increase as the market grows. He notes the first six months of the market are focused on laying a solid legal and technical foundation, rather than full optimisation of tax collection.

“Given that the regulatory framework is still being implemented and many operators are in the process of adapting or applying for licences, I believe the government understands that tax revenues will increase progressively over time,” Seckelmann continues.

Overly restrictive measures could harm Brazil tax collection

Despite the promising early figures, there could be challenges down the line for the Brazilian gambling sector, with the Senate approving new ad restrictions in late May. A provisional measure to raise the tax rate on operators’ GGR to 18% was also issued.

These developments have raised concerns among stakeholders, including fears over the long-term viability of regulated activities, particularly for smaller operators.

Seckelmann warns new regulations must be carefully balanced, or they’ll risk disrupting the market’s ability to reach its huge potential.

“If well-calibrated, these measures can strengthen the credibility and sustainability of the regulated sector,” Seckelmann explains.

“However, excessive burdens or disproportionate restrictions could push consumers and operators back toward unregulated alternatives, ultimately reducing tax revenues.

“The goal should always be high channelisation – keeping players within the regulated environment – and that requires a competitive and attractive legal market.”

While he believes fluctuation is natural during the early months of a regulated market, Seckelmann says a new, increased tax rate could cause a drop in tax revenue as operators adjust their strategies.

When will land-based gambling be legalised?

The RFB’s figures only cover online gambling, as the legalisation of land-based betting is still in limbo after the Senate again postponed its vote on PL 2,234/2022 earlier this month.

The vote had been expected to take place prior to the July recess, but Senate President Davi Alcolumbre withdrew the vote from the agenda due to low attendance in the plenary.

The government’s recess is set to end on Thursday, so it remains to be seen if the momentum again builds for a vote.

If legalisation does happen, though, Brazil’s government will likely benefit hugely from a tax perspective beyond the existing online revenue.

A DataSenado survey in April reported 60% of the Brazilian adult population was in favour of legalising land-based betting, with 58% agreeing it would increase tax collection.

It has previously been estimated that the approval of land-based gambling could provide around BRL20 billion in revenue per year, with massive benefits to Brazil’s faltering tourism sector.

In an explosive interview with ICL Notícias, released on 21 July, Haddad and economist Eduardo Moreira discussed the regulated gambling sector in Brazil, which launched on 1 January this year.

When asked by Moreira how Haddad and the government planned to alleviate concerns over family financial troubles caused by gambling, the finance minister described the situation as a “disaster”.

“Families are suffering. I’ve seen things that are unspeakable, as they say,” Haddad said. “I’ve heard of horrifying cases involving bets, people I know who even lost family members because of it. It’s a real tragedy.

“If a project came up in the Federal Chamber to continue or to stop [betting in Brazil], I’d press the stop button. There’s no amount of tax revenue that justifies this mess we’ve gotten ourselves into. What’s happening is really bad.”

Haddad’s anti-gambling stance raises industry eyebrows

The SPA, which regulates gambling in Brazil, is a department within the ministry of finance. In response to the interview, many industry stakeholders noted the irony of the ministry’s leader appearing to lobby for the shutdown of a sector it regulates.

Haddad is not the only official seeking a shutdown of licensed betting in Brazil. The sector is still awaiting the outcome of a November Supreme Federal Court hearing to clarify whether the betting laws are unconstitutional. This was expected to be due in H1 2025, but has not been addressed in a number of months.

Haddad has already attracted the ire of the licensed Brazil gambling sector, as he is one of the key proponents of the bill to increase the gambling tax rate from 12% to 18% GGR.

That measure is now undergoing a review by the National Congress, with the provisional measure extended to 8 October, by which time a vote will occur to decide whether to make the tax rise permanent.

Haddad comments draw furious reactions from trade bodies

The ANJL expressed its “surprise and dismay” at Haddad’s statements, describing them as defamatory against the betting sector.

“This surprise comes from the fact that the sector, which has been diligent in complying with all the regulations of the Secretariat of Prizes and Bets (SPA), did not expect to be the target of such an attack from the minister,” an ANJL response read this week.

“It also expresses dismay because of the highly detrimental potential for the market, stemming from this assessment by the head of the department under which the sector’s regulations are being developed.”

According to the ANJL, the issues of family debt and predatory advertising mentioned in the interview largely relate to illegal operators, rather than their licensed counterparts.

“It is also crucial to clarify that cases of addiction are rare in the regulated market,” the ANJL continued.

“The core problem of gambling addiction lies in the widespread activity of illegal websites, which adopt no mechanisms to protect bettors and do not collect any taxes for the country.”

The Brazilian Institute of Responsible Gaming (IBJR) echoed the ANJL’s view that Haddad’s comments were misguided, targeting the legal sector when the illegal alternative is the primary issue.

“The minister’s view diverts attention from the real problem: tax evasion in the illegal market, which dominates 51% of the sector and generates annual losses of BRL10 billion for the country,” the IBJR claimed.

“Statements that downplay the importance of the regulated environment create legal uncertainty, discourage investment and, in practice, strengthen the illegal operations that the government should be combating.”

Treating gambling as a public health issue in Brazil

Haddad says the four years between legislation first being approved and full regulation coming in meant Brazil missed out on BRL40 billion ($7.2 billion) in taxes.

The finance minister also said the government was working with the Central Bank to target fintech companies, which he feels are being used as vehicles for gambling-linked organised crime, such as money laundering.

In Haddad’s view, gambling must be treated as a “serious public health issue” and the government should be utilising data from the first six months of the regulated market.

The ANJL somewhat agrees with this comment, though the association also stressed that licensed operators are funding most of the development of responsible gaming programmes in Brazil.

“Regarding Minister Fernando Haddad’s understanding that gambling addiction should be treated as a public health issue, the association agrees and has already expressed this opinion several times,” the ANJL added.

“It is important to emphasise, however, that currently, the tax paid by legal betting houses already allocates a portion of these funds to health.”

Controversy around influencer marketing for gambling activities plagued the launch of the licensed betting sector in Brazil this year, becoming one of the key focuses of the parliamentary inquiry commission (CPI) set up to investigate the impacts of betting on the population.

In June, police chief of Alagoas state Lucimério Barros Campos claimed influencer advertising was misleading and scamming gamblers. Additionally, the CPI’s rapporteur Soraya Thronicke sought to indict notable influencers such as Virgínia Fonseca and Deolane Bezerra in her final report.

However, the CPI came to an inauspicious conclusion, becoming the first CPI in a decade to have its report rejected. Fonseca and Bezerra narrowly avoided indictments on charges such as fraud and illegal gambling.

Also among the failed recommendations was a ban on the controversial Asian-themed slot Fortune Tiger, which has been linked to harmful influencer marketing schemes.

In relation to the scandal and wider calls for stricter marketing measures for gambling, the senate has subsequently looked to further restrict advertising, including a ban on the use of influencers.

But while the pressure on influencer advertising has been substantial, BetMGM’s Ludmer is concerned that further restrictions on licensed operators’ use of influencers could push players into the black market.

“Imposing excessive restrictions on influencers who work with legal operators may inadvertently empower precisely the very market we aim to suppress: the illegal sector, which operates without accountability, disregards player welfare and undermines the integrity and reputation of the industry as a whole,” Ludmer states.

Operators must be responsible with influencer ads

However, Ludmer stresses the importance of operators taking accountability when using influencers. He believes these partnerships can serve as a useful tool for the licensed market to distinguish itself against illegal operators.

Ludmer points to a recent study by the Brazilian Institute of Responsible Gaming that found 78% of Brazilians have difficulties differentiating between legal and illegal sites.

“The use of influencers in the betting industry requires a high level of responsibility and attention on the part of operators, especially when we consider the reach and impact that a single post or campaign can have on diverse audiences,” Ludmer continues.

“These individuals play a key role in spreading a vital message: betting is not a financial investment, but a form of entertainment that must be enjoyed with responsibility and awareness.

“We believe that, with clear guidelines and effective oversight, this channel can serve as a powerful tool showcasing the sector’s commitment to transparency and responsible gambling.”

The licensed betting sector has come under huge pressure of late. Alongside the new ad restrictions, the industry is currently facing a gambling tax increase to 18% of GGR.

Illegal market the central concern for operators in Brazil

Ludmer’s warning is another reminder of the ongoing battle licensed operators are fighting with unfair competition from the black market.

Currently, H2 Gambling Capital managing director Ed Birkin estimates around 30% of the betting market in Brazil is offshore.

Ludmer stresses that if the Brazil regulated market is to succeed and achieve its clearly massive potential, channelisation into legal offerings must be a primary objective.

“For the regulatory environment to be healthy and sustainable, it is essential that the majority of bettors are in the legal market, which only happens when there is a balance between taxation, the attractiveness of the offer and effective mechanisms to combat illegality,” Ludmer adds.

“The important thing is that the regulatory model must be structured in such a way as to continually encourage consumers to migrate to the regulated environment, guaranteeing fair competition, prevention of money laundering and player protection.”

On 20 July, the DPRJ announced it had filed a Public Civil Action (ACP) seeking damages of BRL300 million ($53.9 million) from operators, claiming their advertising had omitted essential information about the risks associated with betting.

The Consumer Defence Centre, a specialised department within the DPRJ dedicated to representing consumers, called for measures to be urgently implemented to protect bettors and ensure greater transparency from betting companies.

The ANJL has hit back, however, asserting the claims made in the ACP are unfounded. It warns the action could in fact harm bettors by making it harder to distinguish between licensed and illegal operators.

The ANJL highlighted the creation of a working group, established by the National Advertising Self-Regulation Council (Conar) in 2023, which aimed to clarify ethical standards for betting advertising in Brazil.

“All necessary measures for responsible and transparent gambling advertising are already adopted by regulated betting houses,” ANJL President Plínio Lemos Jorge said.

“Therefore, the Public Defender’s Office’s claim in the lawsuit makes no sense, as its arguments only apply to the illegal market. Therefore, the ANJL will act to provide the necessary clarifications in the proceedings.”

The DPRJ’s lawsuit

The defendants in the lawsuit include some of the largest licensed operators in Brazil, including Betano, Bet365 and Esportes da Sorte.

The BRL300 million figure represents 1% of the estimated BRL30 billion in monthly betting transactions in Brazil, according to Central Bank data. The money is set to go towards prevention and treatment of betting addictions.

One of the DPRJ’s requests is a ban on the exclusive use of the phrase “Play responsibly” in betting advertising, with the belief this is insufficient and too vague.

Instead, the DPRJ is calling for companies to be clearer in their warnings of the potential harms associated with gambling.

Public Defender General Paulo Vinícus Cozzolino Abrahão said: “Many people view gambling as a kind of investment, with the idea that there will be a return, which is a completely misguided notion, the result of a lack of financial education and misleading advertising.

“Gambling is a game of chance, not luck. We need to raise this awareness. It’s the same movement that occurred with cigarettes in the 1990s, and today there is a collective awareness that smoking is not beneficial to health. The issue needs to be addressed with the utmost speed and seriousness.”

The ANJL takes exception to claims operators aren’t advertising responsibly, dismissing the lawsuit’s argument that the “responsible gaming” warning is just a “decorative expression” and objecting to the assertion that companies are trying to frame betting as a reliable source of income.

Betting ads a hot topic in Brazil

Betting advertising continues to be a hugely controversial issue in Brazil.

Such is the concern that, in May, the Senate approved a number of new restrictions on betting ads in Brazil.

These include a ban on betting ads during live broadcasts of sporting events, as well as prohibiting use of celebrities such as athletes, artists and influencers.

Additionally, adverts on open and subscription television, social media, streaming and the internet would only be allowed between the hours of 7.30pm and midnight.

Meanwhile, radio ads would only be permitted in the morning between 9am and 11am and in the evening between 5pm and 7.30pm. Print media ads would be banned entirely.

It will now fall upon the Chamber of Deputies to review the bill, although the industry warns further ad restrictions would only serve to empower the black market.

Udo Seckelmann, head of gambling & crypto at local law firm Bichara e Motta Advogados, warned the push for fresh ad restrictions “lacks evidence-based support”.

“The motivations, although well-meaning, must be weighed against real-world outcomes – and the evidence suggests that informed, responsible regulation is more effective than prohibition,” Seckelmann told iGB. 

Earlier this month, EA announced Hanzbet would close its operations by 31 July, with the site only remaining active for players to withdraw their balances.

Hanzbet founder and CMO Eduardo Peres published a statement on his LinkedIn page on Monday, describing the situation as a “true operational dictatorship” and explaining he and his team had been removed from all internal communication channels and decision-making.

According to Peres, the statement announcing the closure of the Hanzbet brand was issued without their consent, causing payments to affiliates, suppliers and service providers to be suspended.

Peres also claimed EA is intentionally diverting Hanzbet users to BateuBet, another of EA’s brands, via its support channel.

“This is revolting,” Peres said. “It is a lack of respect for our history, for the partners and for all the professionals who helped build HanzBet with so much effort.”

Peres believes this should serve as a warning to other operators working under a similar structure, saying he and his colleagues will continue to battle against EA’s actions.

“If you have an operation allocated under another [company’s] structure, be aware,” Peres continued. “Analyse who you are hanging out with. Not everything that looks like a partnership is, in fact, a partnership.

“We are taking all legal and appropriate measures. And above all: we will fight to the end for what is ours.”

iGB has reached out to EA Entretenimento e Esportes Ltda for comment but had not received a response at the time of publishing.

Hanzbet users unable to withdraw

Peres said he hadn’t experienced or witnessed anything like this in the three years working in the betting sector with Hanzbet.

Even with contracts signed between Hanzbet and EA, Peres explained the reliance on a judicial process will be extremely drawn out, with serious reputational damage happening in the meantime.

Even more seriously, Peres has accused EA of making withdrawals impossible by withdrawing company liquidity while also informing customers they must withdraw from their accounts prior to Hanzbet closing down.

“In other words, they induced customers to withdraw, but those responsible themselves prevented this from being done by emptying the funds,” Peres said.

Licensing structures in Brazil

This situation could prove concerning to operators in a similar position to Hanzbet, with parent company licence holders maintaining financial control.

Many legal operators in Brazil are licensed under parent companies, as licensing requirements dictate that operators must be at least 20% owned by a locally operating business and have local headquarters

Notably, in a separate Instagram post, Hanzbet hinted at a possible return for the business in the future, though it’s currently unclear how the company will achieve this with links with its previous licence holder now severed.

The post stated: “Hanzbet is about to return with a new phase. More modern, more complete and better than before.”

This week Ed is testing formats, so from last week’s random country generator Peru and Niger are up for discussion.

Is Peru Latin America’s hidden gambling gem?

Peru online gambling regulation passed last year, and while Brazil stole the spotlight, it’s a stable market and even the introduction of a 1% tax on turnover was shifted to GGR. However there’s a big presence from local brands, so can international operators carve out share without M&A activity?

The Niger gambling market, after some hasty research, is reasonably sized but suffers from the same drawbacks that hold back some other African countries’ gaming markets, namely a lottery monopoly.

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Is there any hope for legal casinos in Brazil? 

And last week Brazil’s omnibus bill to legalise a range of land-based gaming products, namely jogo de bicho, bingo halls and casinos failed to progress to a Senate vote. Does that mean the dream of regulated casino gambling in Brazil is dead? 

Our special guest – you’ll have to listen to find out who it is – says in its current form, yes. Legislators supporting Brazil casino legalisation are now likely to apply what worked for sports betting, namely splitting out the casino proposal from the omnibus bill. But will that push things forward any time soon? Don’t hold your breath. 

In June, the Brazil government rocked the licensed gambling sector by publishing a provisional measure (PM 1,303/2025) proposing a gambling tax rate hike of 50%.

When paid alongside other taxes such as corporate income tax and social contributions, the overall tax burden on licensed gambling companies stands at around 50%, with some in the industry warning this will make operations unviable.

From the PM’s publication on 11 June, Congress has up to 120 days to vote on whether to make the tax hike on gambling permanent or not.

The joint committee has scheduled four public hearings, with the first set for 7 August and the last set for later that month, to discuss the measure and consider contrasting views on the measure.

Senator Renan Calheiros will chair the committee, while deputy Carlos Zarattini will serve as the proposal’s rapporteur.

Congress’ leader, Senator Randolfe Rodrigues, believes taxing sectors such as gambling could be crucial in reducing social inequalities in Brazil.

“Today, we are one of the 10 economies in the world and, at the same time, one of the 10 most unequal countries,” Rodrigues said. “Something isn’t right about this combination. The government sought, with this provisional measure, to build mechanisms for tax justice.”

The Congress must vote on the provisional measure by 9 October, with the committee’s own vote on the matter expected on 26 August.

What’s included in PM 1,303/2025?

Of the new 18% GGR tax rate, which became effective on a provisional basis immediately after the measure’s publication, one-third will go toward social security and health contributions, while the remaining two-thirds will be distributed across other areas, including sports and education.

The tax was introduced after the government revised a controversial decree that would have increased the rate of financial transactions tax (IOF) from 0.38% to 3.5%.

The IOF was implemented in Brazil as a monetary policy tool to help regulate financial markets. It applies to all foreign transactions, including loans, currency exchange, insurance and investments, representing a significant source of government tax revenue.

To alleviate the backlash of increasing the IOF by so much, the government switched its focus to sectors such as gambling in order to fill the BRL20 billion ($3.6 billion) hole in its budget. There are still plans to increase the IOF but by much less than previously suggested.

The move has sparked a furious reaction from the nation’s licensed gambling industry, with the Brazilian Institute of Responsible Gaming warning the tax rise could spike the illegal market’s share to at least 60%.

“The measure is unacceptable and makes it impossible for many companies that trusted and invested in the regulated market to operate, generates legal uncertainty and threatens public revenue,” the IBJR stated in June.

Is gambling in Brazil being taxed enough?

Other sectors, such as fishing, real estate and agribusiness, have also been affected by PM 1,303/2025.

In a speech on Tuesday, Senator Izalci Lucas criticised the measure, saying it unfairly targeted sectors such as agribusiness and constructions funds, while not increasing the tax on gambling to a sufficiently high rate.

While industry leaders argue the rate is unsustainably high, some lawmakers such as Senator Izalci believe gambling is still undertaxed relative to its social costs.

Additionally, Izalci criticised the government’s failure to implement the ban on the use of social welfare proceeds, such as from the Bolsa Família programme, for gambling.

“This government only thinks about taxes and only thinks about raising taxes,” Izalci said. “You take the betting industry, which has destroyed Brazil, reduced supermarket consumption, reduced retail consumption.

“To this day, the government hasn’t had the authority to actually prohibit people receiving Bolsa Família from gambling on the betting industry. This government’s incompetence is incredible.”

In June, the ANJL accused ABRAS of misleading the public in a video published on the supermarket association’s social media, titled “History of Bets”.

In the video, ABRAS claims regulated betting is linked to worsening food insecurity in Brazil, stating every Brazilian real spent on betting leads to “one less dish on the table”.

The ANJL hit back with a lawsuit calling on ABRAS to explain where the information included in the video originated. The body said it went beyond “criticism of specific agents, and affected the sector as a whole”.

However, the ANJL lawsuit in Brazil has now been dropped, after a meeting with retail entities last Thursday in São Paulo, where the parties discussed how to foster an understanding of the regulated betting sector in Brazil.

“We demonstrated to ABRAS and the Institute for Retail Development (IDV), which also attended the meeting, that everyone’s focus should be on illegal gambling,” ANJL President Plínio Lemos Jorge said.

“Operators that are not authorised to operate in Brazil have no concern for the integrity of bets or the protection of bettors.”

Dialogue between ANJL and retail sector to continue

The meeting marked the opening of a dialogue between the betting and retail sectors, with Brazilian Institute of Responsible Gaming (IBJR) Executive Director Fernando Vieira also present. The IBJR is a second trade body covering the online gambling sector.

According to the ANJL, the goal for future discussions is to jointly advance issues of shared interest, particularly surrounding the financial health of Brazilian consumers, utilising what was learned at last week’s meeting.

“We have taken this understanding and will deepen those discussions in future meetings,” Lemos Jorge added.

Notably, however, the two sides couldn’t reach an agreement on the controversial topic of betting advertising in Brazil.

In May, the Senate approved a number of new ad restrictions, including bans on marketing during live sporting events and the use of celebrities, as well as watersheds.

The retail sector is keen for betting advertising to be restricted, while the gambling industry warns further restrictions will only boost the black market.

In the meeting, IBJR President Vieira highlighted that around 80% of bettors cannot currently distinguish a licensed operator from an illegal one, with advertising offering a solution to this problem.

ANJL and IBJR join forces

Last week, the ANJL officially formalised its cooperation agreement with the IBJR amid the threat of new ad restrictions and an increase in the tax rate.

This move, carried out in coordination with the Secretariat of Prizes and Bets, unites the country’s two largest gambling trade associations.

Both organisations are aligned in their primary objective of protecting the sustainability of Brazil’s regulated betting market.

Vieira said: “The consolidation of this partnership is a concrete response to the challenges that threaten the regulated environment in Brazil.”

Last week, the Brazilian Association of Higher Education Providers (ABMES) revealed the findings of a study titled “The Impact of Betting on Higher Education”.

One of the headline figures from the study was an estimate that nearly 2.9 million potential entrants to private higher education in H1 2026 are at risk of not enrolling due to financing issues caused by online gambling.

Among those interviewed for the study, 34% of students said they would have needed to halt their gambling in order to begin their studies in the first semester in 2025.

The ANJL has published a clarification note in response to the survey, saying the online betting sector in Brazil “rejects the construction of narratives” that blame the industry for setbacks in the social and economic situation of Brazilians.

Alongside admissions, the ABMES study also claimed 14% of students already enrolled in private institutions had either delayed tuition payments or dropped out of school entirely due to betting expenses.

“There is no direct relationship between gambling two to three times a week and dropping out of or continuing a higher education programme, as the survey and report suggest,” the gambling trade body stated, denouncing the study.

In the note, the ANJL pointed to another question in the study that found 79% of respondents answered “no” when asked whether they had not invested in a university course or any other type of higher education because their income had been compromised by sports betting.

Additionally, the ANJL also claims the report omits information from ABMES’ own study, which said over 70% of respondents recouped the money they had spent on gambling when they played again.

“ANJL also emphasises that gambling is an entertainment industry and, by its nature, competes with other forms of entertainment,” the note read.

What else did the study on students reveal?

According to the survey, 52% of respondents gambled regularly, with total spend varying between social classes.

ABMES defines class A as being those with a monthly household income exceeding BRL27,000 ($4,857), while the income of those in classes D and E would be between BRL1,000 and BRL2,500.

According to the ABMES survey, class A gamblers allocate around BRL1,210 to gambling a month, whereas in classes D and E, the average is BRL421.

“The study shows that online gambling has become an additional obstacle to accessing higher education in Brazil,” said ABMES general director Paulo Chanan.

“We need to take a serious look at this scenario and develop public policies that raise awareness among young people about the responsibilities involved in gambling.”

However, the ANJL believes the issue is being overblown, saying most of those surveyed across all social classes spend less than 5% of their income on gambling.

“Constructing narratives that propagate the misguided behaviour of a minority as if it were widespread only harms the sector and Brazilian society itself,” the ANJL continued.

ANJL and IBJR formalise cooperation agreement

Also last week, the ANJL announced it had formalised its cooperation agreement with the Brazilian Institute of Responsible Gaming (IBJR).

The formalisation with the Secretariat of Prizes and Bets, the regulator of betting in Brazil, brings together the two largest gambling trade bodies in Brazil.

It comes at an important time for collaboration across Brazil’s betting industry as new ad restrictions, including watersheds and a rise in gambling tax rate threaten the market.

The two bodies share the key goal of ensuring the viability of the regulated market, which only launched on 1 January this year.

“The consolidation of this partnership is a concrete response to the challenges that threaten the regulated environment in Brazil,” said Fernando Vieira, IBJR president.

“Joining forces with ANJL is a way to strengthen our efforts against illegal operators, promoting greater security for bettors and sustainability for the sector.”

Senate President Davi Alcolumbre announced he was taking the vote on casino bill PL 2,234/2022 off the agenda on Tuesday, in another blow to proponents of land-based betting in Brazil.

Over a year has now passed since the Justice and Citizenship Committee approved PL 2,234/2022, with the senate vote the final step before it would fall upon President Luiz Inácio Lula da Silva to sign it into law, which isn’t expected to be an obstacle.

Alcolumbre cited the low attendance in the plenary, with only 56 senators present and a number of key opponents of land-based betting absent from the plenary session.

“There is certainly a division in the senate on this issue,” Alcolumbre said. “Given the quorum of 56 senators, the significant divergence on this matter and the requests from senators who would like to be present for the vote, this presidency will withdraw this item ex officio.”

It’s not yet clear when PL 2,234/2022, which would legalise land-based gambling verticals such as casinos, bingo, jogo de bicho and betting on horseracing, will return to the senate’s agenda, with the next parliamentary recess coming up on 17 July.

Brazil’s long wait for land-based casino legalisation continues

Brazil enforced a nationwide ban on gambling in 1946, but the country launched its licensed online betting market on 1 January this year.

But the wait for legal land-based betting rumbles on, as it faces strong opposition from multiple senators who voiced their concerns over its authorisation in Tuesday’s plenary session.

Alcolumbre’s decision to postpone the vote highlights the deep political divide over gambling in Brazil, with its supporters claiming land-based legislation could provide huge economic benefits, while opponents are largely concerned with the social fallout of betting.

Senator Eduardo Girão has perhaps been the most vocal opponent of gambling in Brazil, and on Tuesday he celebrated the withdrawal of PL 2,234/2022, claiming the population was concerned.

Girão would like to see the bill forwarded to three committees to explore the impacts of legalisation and study potential increases in addiction levels and criminal activity relating to gambling.

He views the online sector’s legalisation as an error, saying: “The betting houses have shown that it was a mistake for this house to regulate them.

“Making a mistake once is understandable, but making a mistake twice is not. The senate needs to have a minimum of sensitivity and reject this.”

Senators Humberto Costa, Plínio Valério and Chico Rodrigues also voiced their opposition, citing impacts on the population’s mental health and family debt.

Rodrigues argued any economic benefits are cancelled out by the impact of gambling on other sectors within the economy, such as retail.

“Taxes collected through the legalisation of gambling are no longer collected from other economic activities, since families stop consuming and start spending on gambling,” Rodrigues claimed.

Vote postponed despite national survey

The vote’s postponement comes despite the vast majority of the population seemingly supporting land-based gambling. A recent state-supported survey reported 60% of the Brazilian adult population is in favour of land-based legalisation.

In April, the DataSenado Research Institute found just 34% of the 5,039 Brazilian men and women aged 16 or over surveyed were against the bill’s approval.

With some estimating legalisation could provide around BRL20 billion ($3.5 billion) in annual revenue, 58% of those surveyed by DataSenado agreed a licensed land-based sector would increase tax collection in Brazil.

Additionally, 44% said land-based legalisation would increase the number of jobs in Brazil.

Pressure on the online sector perhaps a contributing factor

The introduction of the online sector has been marred by political criticism and media scrutiny, which some believe could have led to the delays in land-based legalisation.

Just over six months has passed since the legal online market went live and already it appears the industry will be facing new ad restrictions and an increase in operator tax rate to 18%, which would take the total tax burden to around 50%.

Senator Girão claims recent media coverage of online betting-related money laundering is evidence the land-based form shouldn’t also be authorised.

“You can read the headlines of O Globo, Estadão and Folha recently, showing that organised crime has never laundered so much money, never made so much profit from the advent of gambling,” Girão argued. “And what is the problem in Brazil today? Basically, it is public safety.

“The Lula government, which claims to protect the less fortunate and the poorest, can fix this mistake of betting by absolutely not allowing any more gambling to take place.”

Betfair confirms New Zealand exit

Flutter Entertainment-owned Betfair has announced it will cease operations in New Zealand later this month.

Betfair will continue to accept bets up until 23 July. After that date, players in the country will no longer be able to access Betfair, according to The Straight.

The withdrawal comes ahead of significant change within the New Zealand online gambling market. In July 2024, the government set out plans to regulate iGaming in the country, with changes now imminent.

“We apologise for any inconvenience caused by the upcoming change and poorer user experience,” Betfair said in statement. “Unfortunately, Betfair has to make the upcoming change to comply with the legislative amendment.”

Last month, the government introduced the Online Casino Gambling Bill into the House of Representatives. This included plans for 15 licences in the newly regulated market. It is unclear whether Betfair will apply for a licence.

Funding issues forces GamCare to end young people initiative

In the UK, GamCare has confirmed it will halt its young people-focused harm prevention programmes due to funding issues.

GamCare has delivered programmes to over 250,000 children and young people, parents and professionals across the UK since launching the initiative five years ago.

However, from October this year, GamCare said it will cease the programmes, blaming lack of sustainable funding. The charity will continue to run its Youth Advisory Board to ensure young people’s voices still inform its work.

“GamCare remains committed to reducing gambling harm and none of our other services are affected by this change,” it said.

Luckbet welcomes Paulin as new marketing chief

Brazil-facing Luckbet has appointed Vitor Paulin as its new chief marketing growth officer.

Paulin brings with him experience in various industries and a range of management roles. This includes working across branding, digital marketing, data-driven strategies, CRM and user experience optimisation.

He joins the operator from Open Mind Brazil. Paulin has also worked for Grupo Aposta Ganha, Serasa Experian, DDM Company and Excola Conquer.

“Leading Luckbet’s marketing is a unique opportunity to consolidate the brand in a sector undergoing transformation,” Paulin said. “Our goal is to build a brand presence that combines light and fun entertainment with a fluid and personalised user experience, reinforcing our commitment to responsible gaming.”

Evolution enters Rhode Island with Bally’s

In the US, Evolution has secured access to the Rhode Island market through a partnership with Bally’s.

Under the deal, Bally Casino’s iGaming offering in the state will now feature content from Evolution. This includes games from NetEnt, Red Tiger and Big Time Gaming.

Also linked to this deal, Evolution will introduce exclusive Bally’s-branded live dealer blackjack tables in New Jersey and Pennsylvania.

“We’re thrilled to deepen our collaboration with Bally’s by delivering world-class gaming experiences and extend our reach into Rhode Island, a first for Evolution,” said Jacob Claesson, CEO Evolution North America.

Betano scores Bayern Munich deal

Sports betting provider Betano has entered into a new partnership with German Bundesliga football club Bayern Munich.

The agreement will see Betano becoming an official partner of FC Bayern for a number of years.

Betano is owned and operated by Kaizen Gaming. The brand is active in Germany, as well as Portugal, Brazil, Romania, Bulgaria, Czech Republic, Chile, Peru, Ecuador and Ontario in Canada.

“Germany has always been one of the most important markets for us, the second where Betano ever launched,” Kaizen Chief Commercial Officer Julio Iglesias said. “Now, we are announcing our biggest partnership in the country.”

Brazil launched licensed online gambling on 1 January, but the bill to legalise land-based betting has been postponed on numerous occasions despite being approved by the Justice and Citizenship Committee last year.

However, it now does appear the bill, PL 2,234/2022, will go in front of the Senate for a vote after Senate President Davi Alcolumbre placed it as item four on the voting agenda for the 8 July session.

If passed by the Senate, the bill will then go to Brazil’s president, Luiz Inácio Lula da Silva, for final approval, although the president is not expected to resist the policy.

General support for land-based casinos in Brazil

The launch of the licensed online sector has been marred by criticism, with fears of its impact on addiction levels and family debt.

However, in April a DataSenado national survey reported 60% of the Brazilian adult population support the bill to legalise land-based casinos.

Much of the political backing for land-based gambling in Brazil stems from the potential economic gains the industry could deliver.

Some estimates suggest legalisation could generate approximately BRL20 billion ($3.5 billion) in annual revenue.

When asked whether legalising land-based gambling would boost tax revenues, 58% of respondents in the DataSenado survey agreed, while 22% believed it would have no impact.

Furthermore, 44% of those surveyed said they believe legalisation would lead to more job opportunities in Brazil.

With the Brazilian government raising the tax rate on operators’ GGR from 12% to 18%, some in the betting industry have instead suggested legalising land-based casinos as a way of boosting tax coffers.

However, there remains some oppositition to the legalisation of land-based casinos, namely the longtime gambling critic Senator Eduardo Girão.

Girão has argued recent media reports highlighting a rise in money laundering prove the land-based gambling bill should not move forward.

“You can read the headlines of O Globo, Estadão and Folha recently, showing that organised crime has never laundered so much money, never made so much profit from the advent of gambling,” Girão claimed in June. “And what is the problem in Brazil today? Basically, it is public safety.

“The Lula government, which claims to protect the less fortunate and the poorest, can fix this mistake of betting by absolutely not allowing any more gambling to take place.”

Understandably, operators are shocked and likely reconsidering their positions in the newly regulated market.  

“[Operators] don’t want to be investing in a country they agreed to pay BRL30 million [to enter]. They agreed to invest hundreds of millions into this venture and then six months down the road they just change the rules of the game without asking you,” Eduardo Ludmer, BetMGM’s head of legal in Brazil, tells iGB.  

Gambling trade bodies ANJL and IBJR banded together and condemned the government’s provisional measure as “unacceptable” when it was announced earlier in June.  

“If Brazil goes in this direction, it’s just showing a message that rules can be changed at any time here,” Fernando Vieira, executive director of the Brazilian Institute of Responsible Gaming, adds. “It’s not reasonable to come and start to change everything after only five months. 

“It will send a message to the world that Brazil is a complicated place for doing business. There’s no legal certainty in Brazil for the business.” 

What is the government suggesting? 

In June, the Brazilian government enacted a provisional measure to raise the tax rate as part of a broader effort to cut the government’s deficit.  

It relates to upcoming proposed changes to Brazil’s tax system, set out in May, which would have seen a sharp increase to the financial transactions tax (IOF), raising the rate from 0.38% to 3.5%. 

The IOF applies to a range of foreign transactions including loans, currency exchange, insurance and investments. It remains a major source of federal tax revenue. 

However, the proposal faced backlash from Congress, prompting the government to revise the decree almost immediately. 

President Lula’s administration remains under pressure to reduce Brazil’s fiscal deficit by the end of 2025, ahead of next year’s presidential election.  

Therefore, the government has turned its attention to the betting industry to help cover the BRL20 billion ($3.6 billion) shortfall left by the IOF decree’s failure. 

This has come as a huge shock to the sector, especially the timing, with less than six months having passed since Brazil’s licensed online sector went live on 1 January. 

Ludmer tells iGB his company’s finance team will have to recalculate their forecasts to include the abrupt tax rise. 

“Everybody was very surprised with the increase, because you prepare yourself, you buy a BRL30 million licence, you have a business plan based on a 12% tax rate,” Ludmer says. 

This could have huge repercussions for the licensed sector, which suffered another blow recently when the Senate approved new ad restrictions, such as watersheds across TV and radio.

ANJL President Plínio Lemos Jorge warns the tax rise will impact ongoing requests for licences, with Brazil potentially losing out on BRL2.8 billion in revenue should operators decide to give up on entering the regulated market. 

Legal uncertainty caused by tax hike the key point 

Ludmer is concerned sudden changes like the tax rise will ultimately undermine investor confidence in the regulation, making Brazil appear as “not a serious country”. 

The sector is still awaiting the outcome of a Supreme Federal Court hearing to establish whether its betting laws breach Brazil’s Constitution.

This hearing was called after the National Confederation of Trade in Goods, Services and Tourism (CNC), Brazil’s third biggest trade union, filed an ADI (Ação Direta de Inconstitucionalidade), a legal action in Brazil that aims to overturn a law that acts against the nation’s Constitution.

“For me, this [legal certainty] is the pillar for everything to succeed,” Ludmer continues. “It’s one of the most important aspects to doing business, not only in Brazil, but everywhere.” 

“Imagine you have the Supreme Court that is slated to declare or not the legality of betting, of the whole industry we are working in, where we are making investments in the billions, hiring like crazy. And it could be the case that this whole thing can have a huge setback. It’s crazy to imagine that.” 

Vieira agrees the inevitable legal uncertainty has the potential to set back Brazil’s nascent licensed sector. 

Ludmer explains this rise is to be paid alongside a range of other taxes, such as income and municipal taxes, pushing the total burden on operators close to 50%. 

“Operators have said it’s prohibitive in terms of business to have 18%,” Ludmer says. “We want this country to thrive and we understand that an industry can help contribute to that, so creating jobs, paying reasonable taxes based a on predetermined rate that we agreed upon, that should not be varied.” 

Illegal market again a key concern in Brazil 

Lemos Jorge agrees with Ludmer’s warning the tax rise is prohibitive to operators and he says it will be much harder for licensed companies to remain profitable.

Authorised operators may opt to exit the licensed market, with consumers then pushed towards the black market. 

The IBJR has already predicted the market share of illegal operators could jump from the already concerning 50% up to 60%. 

“The only way operators will be sustainable in Brazil is to increase the channelisation level and, for that, the fight against the illicit market becomes even more important,” Vieira explains.  

These illegal operators don’t comply with responsible gambling measures or pay taxes and, in Ludmer’s view, lax enforcement is allowing such companies to continue their activities without fear of punitive backlash, as well as payment providers who work with black market sites. 

Notably, Anatel, the national telecom regulator, which is tasked with blocking illegal sites in Brazil, is reportedly running out of funds needed to continue its enforcement efforts against the black market.  

“We have criminals doing criminal activities without having any enforcement,” Ludmer says. “They need to pay a very heavy fine.  

“If we see the Central Bank imposing a very heavy fine on these payment providers, then we’re going to see these illegal operators being scared, because nobody’s scared currently.  

“If you act with impunity and you’re earning billions of dollars without paying any tax, without hiring any local employees, without contributing to the economy, and you have no sanctions, you keep on doing that, unless you apply the sanctions.” 

Industry needs to educate Brazil lawmakers on tax hike

There is still hope for the betting industry that this tax could ultimately be scrapped. Local news outlet Valor reported Hugo Motta, the Chamber of Deputies speaker, has stated the provisional measure is unlikely to be approved in its current form.  

This time prior to such a vote occurring is therefore crucial for the gambling sector to make its point, educating the politicians on the economic benefits of the betting and, perhaps most importantly, why such a measure could foster black market growth. 

The ANJL has sent a technical report to the presidents of the Senate and the Chamber of Deputies, listing all the consequences for the betting sector should the tax rise be made permanent.

The report also points to other markets where abrupt changes without prior analysis have compromised the competitiveness of the licensed sector, thus boosting the black market. 

The IBJR has also launched a study that found if the government turned its attention to reducing the illegal market by 10%, the additional revenue would cover the funds they are expecting to gain from raising the tax. 

Brazil government’s lack of understanding

One key issue is the lack of understanding from the government of the betting sector, Vieira laments. He notes the average member of parliament has a “very low understanding and knowledge” of the sector’s regulation. 

“Education is a fundamental piece of the answer for the problems that we’re facing in Brazil,” Vieira adds. “One front is education from the stakeholders in Congress and some of them in the government to understand that we have already a good set of rules in place.  

“And the other part of education which is needed is educating the consumer, because we saw in our research that most bettors find difficulties in distinguishing a legal operator from an unregulated operator.” 

This duty also falls upon operators, Ludmer says. “We have a responsibility here as a big company as well to educate the market. Our main campaign now is on responsible gaming.” 

IBJR and ANJL join forces

Some in the industry have previously lamented the fragmented representation of the sector, with five major trade associations representing betting in Brazil. 

However, the two biggest, the ANJL and IBJR, signed a cooperation agreement in June, aiming to strengthen their efforts against overregulation in Brazil. Combined, the bodies claim to represent over 90% of the regulated sector. 

In Vieira’s view this is a step in the right direction, especially when tackling problems that risk jeopardising the entire sector. 

“It means that we will together fight the illicit trade and to guarantee sustainable conditions for the market and increase the channelisation in Brazil, the objective for the whole sector,” Vieira says. 

“It is time, more than ever, for unity,” Lemos Jorge agrees. “We have a common agenda, which is the viability of the regulated betting market.  

“We are facing a great challenge, because over-taxation compromises the activity of the sector and drives the growth of illegal websites, which already represent the vast majority of bets operating in the country.” 

Confidence the tax hike won’t be made permanent 

Ludmer is optimistic the tax will not be converted into law. Similarly, Lemos Jorge is hopeful the Congress will see sense and realise just how harmful the rise could prove to be. 

“We are confident in the dialogue with the authorities,” Lemos Jorge concludes. “The regulated market pays its taxes, generates revenue for governments and enables the creation of thousands of jobs.  

“Now is the time to focus on and improve a sector of the economy that will not regress and that can make significant contributions to the expansion of public policies.” 

Even if the policy isn’t converted, however, the threat of it is a harsh reminder of the unpredictability in Brazil. This approach is what also delayed the launch of the legal sector and helped encourage black market proliferation.  

Now more than ever, operators like BetMGM and the two major trade bodies need to get on the same page and ensure the momentum of the licensed betting sector isn’t harmed.  

Last week, Folha reported Anatel is lacking the funds and personnel necessary to carry out site blocking orders issued by the Secretariat of Prizes and Bets (SPA), Brazil’s betting regulator.

The report said Anatel had been impacted by government budget cuts, which was being made worse by the upcoming retirements of civil servants in 2026.

With the illegal market continuing to prove an issue to the newly regulated online betting market in Brazil, BetMGM’s Head of Legal Eduardo Ludmer has questioned where the funding for enforcement has been spent. To date, betting operators have paid around BRL2.3 billion ($416,793) in licensing fees, which in part should fund black market enforcement.

“You cannot not have resources to enforce the law,” Ludmer tells iGB. “Everything relates to government spending. Public expenditure has reached unprecedented levels.

“Public services in Brazil often fall short in quality, despite being generously funded. So, when we say that our industry is financing the costs of the administration, it feels more like we’re underwriting a record-breaking level of government expenditure and debt.”

Anatel Head of Enforcement Gesiléa Teles told Valor International in June that the agency had blocked over 15,000 illegal sites since the market’s inception, with the body’s president, Carlos Baigorri, calling for additional powers to further increase its capabilities.

Betting an easy target for government’s economic plans

The licensed Brazil betting sector was rocked recently when the government raised the tax rate on operators’ GGR from 12% to 18%, a 50% hike, in the form of a provisional measure.

Congress has 120 days from the provisional measure’s publication on 11 June to vote on whether to make the tax rise permanent.

The government is working to eliminate its budget deficit by the end of 2025. Previous plans to increase the rate of financial transactions tax were altered after the Congress put pressure on the government to adapt the policy. But an alternative policy has also faced pushback.

BetMGM’s Ludmer believes betting has been identified as an easy target to help with the budget, especially considering the current public and political pressure on the gambling sector.

“They are just trying to go after, let’s say the weaker [option], and then they know that many politicians in the opposition are not fond of the betting sector,” Ludmer adds.

“It’s not easy to have all these nuances and the political aspects and complexities that are very intrinsic to this sector right now.”

Tax rise could propel illegal betting in Brazil

In response to the tax rise, the Brazilian Institute of Responsible Gaming (IBJR) warned the illegal market could grow from a 50% to 60% share of the overall market, as players avoid increased costs.

Increasing the tax burden on operators could be a critical error in the IBJR’s view. “The way to increase collection is not to penalise those who operate within the law, but to rigorously combat illegality and protect bettors by following the regulation of the sector.”

With Anatel already under significant pressure and its powers seemingly waning, rather than being increased as Baigorri said was necessary, it appears the illegal market could continue to prove the biggest threat to licensed operators.

True to form, the conversation quickly diverges, to take in the current state of the Spanish market where GGR continues to go up in spite of advertising spend declining.

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That of course leads onto Italy, and some arguments around the Premier League’s front-of-shirt sponsorship ban. If this all sounds like Robin trying to find gaps in Ed’s data knowledge, that’s exactly what it is. 

So don’t miss Ed’s session on the Brazilian market, where he’ll be joined by Eduardo Ludmer of BetMGM Brazil and Super Affiliados’ Pedro Lucas at 3.40pm on 2 July.

Of course to get in, you’ll have to register – but we’ve got you covered, make sure your name’s on the door for iGB L!VE here: https://tinyurl.com/44py9reb

The SPA’s objective is to make the allocation of fixed-odds betting revenue “more effective and efficient” resulting in potential changes to where the money is allocated in Law No 13,756/2018.

Law No 13,756/2018 splits revenue allocations into three blocks, although only two will be subject to the consultation.

The first of those blocks concerns the allocations to private and civil society entities, such as the Brazilian Red Cross.

The second goes to entities within Brazilian sports, including the Brazilian Olympic Committee, the biggest beneficiary of sports betting taxes. How this money is divided is the key focus of the new consultation.

The third, which brings together the legal allocations to public services, will not be involved in the consultation.

The SPA’s consultation runs for 45 days, closing on 6 August, with interested parties invited to offer their opinions.

The consultation is being conducted through the Participa+Brasil portal, with the process sharing much of the same procedure the SPA utilised to form its 2025-26 regulatory agenda.

Sports image rights under the spotlight

The SPA’s consultation includes 12 questions, the first of which asks if the federal government should establish further rules and criteria for the allocation of betting revenue beyond what Law No 13,756/2018 states.

In April, the SPA published its regulatory agenda for the 2025-26 period, with the regulator stating attempts to improve the allocation of resources from betting to the sports sector would be made in Q2.

Article 30 of Law No 13,756/2018 explains tax proceeds from betting will go to National Sports System entities, “in exchange for the use of their names, sports nicknames, images, brands, emblems, anthems, symbols and similar for the promotion and execution of the fixed-odds betting lottery”.

Sports image rights are featured in six of the 12 questions, with the SPA keen to establish improved measures to ensure the appropriate amounts are distributed to key stakeholders such as athletes, sports clubs and competition organisers.

The questions include requests for suggestions of specific elements common to all sports that could dictate how much should be paid for various image rights.

Currently, the sports sector receives 36% of tax revenues from betting, with the Ministry of Sports the main beneficiary. The breakdown of this is as follows:

SPA explores sports betting tax distribution improvements

The consultation then calls for respondents to give their opinions on how the operation of the distribution process could be enhanced, while also asking how the procedure could be made more transparent.

Notably, the SPA also asks for suggestions of new mechanisms which ensure resources reach their intended beneficiaries.

The consultation concludes by requesting respondents to offer specific regulatory texts that could improve the allocation of tax revenue, either in the form of complete articles or alterations to existing sections of Law No 13,756/2018.

And a mere six months into the nascent market’s existence it has become an easy target for plugging budgetary gaps, as President Lula insists sectors like gambling do not pay enough in state contributions. 

At the time of the announcement, on 3 June, Brazil’s gambling trade bodies had denounced the proposed policy, warning it could spur black market growth.  

The policy change seems straightforward in that the gambling tax rate will increase from 12% to 18% of GGR for all operators, but the reasoning behind the change is complex and the process for the policy to be enacted is shrouded in even more uncertainty

João Rafael Gandara, tax lawyer at Brazilian firm Pinheiro Neto Advogados, tells iGB the policy may not even pass, as it must be enacted within 60 days of the Senate issuing the bill. It can be extended by another 60 days, so 120 days in total.  

He also believes the sector could leverage the Congress’ recent pushback against broad tax hikes in the country.

How did we get here?  

The government hinted at changes in the country’s taxation system in late May, when it announced controversial plans to raise the rate of financial transactions tax (IOF) from 0.38% to 3.5%.

The IOF was introduced in Brazil as a monetary policy by the government, to help control financial markets. IOF must be paid on foreign transactions such as loans, foreign exchange, insurance and investments. It is a significant contributor to the government’s tax revenue. 

Almost immediately the move faced pressure from the Congress and the government quickly scrapped the decree to raise the IOF rate. 

But the current government, led by President Lula, has plans to decrease Brazil’s deficit significantly by the end of 2025, ahead of an election next year. So instead of increasing the IOF, it has turned to the betting sector to help fill a BRL20 billion gap. Other sectors like agriculture are also facing tax hikes to help balance the budget.  

Tax hike enforced within 90 days, but could be revoked by Congress 

Gandara believes the policy could end up being scrapped if the provisional measures are not approved by Congress within a 120-day window. However, despite it not having been formally voted on by Congress, the provisional measure took immediate legal effect in June. The increased tax rate will be implemented 90 days after the decree was published. This means if the measure isn’t made permanent after 120 days, any taxes taken from the 90-day mark onwards must be returned to operators. 

Gandara cites recent examples of Congress swiftly rejecting provisional measures, which could provide some hope for the gambling sector after the hugely negative response to the tax increase and a generally negative perception of the government’s tax policies.  

“We had a recent precedent within the last year where the president of the Congress immediately returned [a policy], saying ‘this has no chance of going [through] and I won’t even start the legal proceedings, so we will immediately reject [this provisional measure].’ 

“And you normally have that when he has the majority of Congress backing him. That was the [outcome] the last time we had this type of problem.” 

The policy in question was a provisional measure that limited companies’ ability to use tax credits and extinguished cash reimbursements of presumed credits. 

Positive signs for the betting sector 

Last week, the Chamber of Deputies gave urgent status to a bill that would overturn the effects of the government’s IOF decree. This means it won’t go through any parliamentary committees before being voted upon. 

This is a fresh indicator the Congress does not support the government’s tax increase efforts to try and reduce its deficit. 

Gandara agrees the government is going the wrong way about eliminating the deficit, by targeting a “clearly overtaxed” gambling sector, which he believes is an “easy target” due to its current negative reputation.

“I think across the whole world, like in the US and Europe, governments are cutting expenses,” Gandara explains. “The other [option] is to raise taxes. 

“The government needs to cut from expenses and they know it’s a hard discussion [to have], so they avoid it and they are really targeting whomever they can. [Gambling is a] new industry and they’re getting a regular income, they’re not the villains of the story.” 

Gandara says taxation is a particularly contested topic in Brazil, which continues to dominate national headlines while elsewhere, US President Trump and conflicts in the Middle East are making up the headlines. 

As the government’s tax raising policy is so controversial, Gandara feels an effectively formulated response from the gambling sector could overthrow the provisional policy. 

“[Taxes] are really a hot topic and I think the government will have a very hard time [convincing] the Congress,” he adds.  

“So maybe if there is a really well organised strategy, explaining to the Congress that this type of taxation can really harm the [sector] and wider government strategy, maybe they can get the policy rejected.” 

Excessive taxation will push companies out

Gandara cites the Laffer Curve, a widely known graph that shows if a tax rate is raised too high, the funds collected start to drop off as companies either leave the country or consumers turn to illegitimate offerings to avoid paying more for a product or service.  

“There’s an optimal point,” Gandara says. “If you push [beyond] that, you are no longer collecting taxes because either companies have left the country, or everyone is in the black market.” 

“What the government should be doing is the opposite, presenting a reasonable tax so they have this optimal collection and you have other companies coming [into the market],” he concludes.  

Brazil’s online market launched on 1 January with 14 full licensees, and subsequent approvals from the Secretariat of Prizes and Bets (SPA) led to around 80 operators operating in the legal market today.

However, although these operators have already met the high barriers for entry, including the BRL30 million ($5.5 million) licence fee, some believe the hefty costs for continued compliance could lead to smaller operators being forced out of the market.

Add to this a potential increase to gambling tax from 12% to 18% of GGR and more advertising restrictions and the market will likely mirror more mature European markets where a handful of the larger players dominate market share.

“The companies that were strong [performers in Brazil] before the regulation are realistically keeping that leadership position,” Tirabassi tells iGB.

“The only one that is a different strategy is the joint venture between MGM and Grupo Globo, which is [new to the market], but the rest are brands that are in continuity, including Betnacional acquired by Flutter.

“The majority of the market will be divided into 10 to 12 operators, which could be 30 brands. The [operators] below a certain threshold of GGR will really struggle [to compete].”

H2 Gambling Capital estimates Brazil’s online betting industry could reach BRL31 billion ($5.5 billion) in GGR in 2025, growing to BRL64 billion in 2030. This is not considering the potential impact of a tax increase.

Regional operators could survive

Despite his belief that larger operators will dominate, Tirabassi suggests smaller competitors could maintain a reasonable market share if they are able to find a niche.

“This could be a regional niche,” Tirabassi continues. “Not to be a national operator, but maybe an operator that has a decent market share in a specific region for whatever reason.

“But the numbers would be much smaller than the ones that go for national market share, like Bet365, Flutter, EstrelaBet, the kind of guys that will make over BRL200-300 million GGR per year.”

Customer acquisition under pressure from new ad measures

With smaller operators expected to struggle due to the cost of doing business in Brazil, recent developments could further turn the screw on such companies.

New ad restrictions banning the use of influencers and athletes and introducing watersheds were approved by the Senate in May. The increased tax rate, which represents a 50% hike from the current rate, will no doubt put even more pressure on operators struggling to compete.

Tirabassi expects over $2.5 billion to be spent on marketing in Brazil over the next 18 months as operators scramble to compete in the new market. Larger operators are expected to make up the bulk of that expenditure as they look to get ahead of incoming ad restrictions.

“We expected there would be some restrictions,” Tirabassi adds. “Before that happens, companies are going to flood the market.

“They will try to get the biggest market share they can. And if and when those restrictions come in, they will [already] have a sizable market share that potentially, they will keep.”

Potential obstacles to M&A activity in Brazil

Tirabassi expects Brazil to become the hottest M&A market in LatAm’s gaming history, which could offer a profitable exit for smaller operators, or enable them to operate within a larger corporation.

Tirabassi advises these independent operators to ensure they have all the necessary corporate requirements in place to facilitate a potential sale. In his experience a lack of corporate structure could lead to problems for operators.

“What we’ve seen is if you have a very large business with a [tiny] corporate structure which is not in line with the size of the business, that’s where [operators] will have to catch up,” says Tirabassi.

“Although they’ve been keeping to the legal requirements and compliance needed [for] the licence, they need to have a CFO and a proper corporate adviser reviewing their numbers, to be ready for due diligence and so on,” he concludes.

Girão has long been an opponent of gambling legislation in Brazil, and with the licensed online market having already launched this year, it is now rumoured the vote to legalise land-based casinos could be carried out before the Senate’s July recess.

Earlier this week, Brazilian newspaper Metrópoles reported Senate President Davi Alcolumbre has said he plans to schedule the vote on PL 2,234/2022 before the July recess.

President Luiz Inácio Lula da Silva is not expected to push back against the land-based bill, and he will need to give the final green light should the senate vote in favour of a regulated land-based sector.

Girão, however, has been critical of the lack of opposition for this bill. He believes recent media coverage on rising betting-related money laundering is evidence land-based legalisation shouldn’t go ahead.

“You can read the headlines of O Globo, Estadão and Folha recently, showing that organised crime has never laundered so much money, never made so much profit from the advent of gambling,” Girão said. “And what is the problem in Brazil today? Basically, it is public safety.

“The Lula government, which claims to protect the less fortunate and the poorest, can fix this mistake of betting by absolutely not allowing any more gambling to take place.”

Girão opposes view land-based legalisation will create jobs

One of the key benefits cited by supporters of legal land-based gambling in Brazil is a boost to the economy, particularly in the creation of jobs.

Girão disagrees with this point, however, instead stating bricks-and-mortar legalisation won’t move the needle in terms of job creation and that instead, more families will be harmed by gambling addictions and debt.

“Brazil already has too many problems,” Girão continued. “We absolutely cannot bring in another one that does not generate jobs, because this farce has already been dismantled. It does not generate jobs.

“PL 2,234/2022 must be rejected, on behalf of the Brazilian people, especially the most vulnerable. This tragedy should not even be put to a vote. It is inhumane, it is insensitive.”

Brazil population supportive of land-based legalisation

In his speech, Girão claimed key bodies such as the Federal Police and Financial Activities Control Council share his views against PL 2,234/2022.

Notably, earlier this year Evangelical Parliamentary Front President Gilberto Nascimento said his party will not support casino legalisation.

However, April findings from a DataSenado survey indicate there is significant public support for a land-based sector.

The findings revealed 60% of the Brazilian adult population were in favour of legalising land-based betting, with 58% agreeing it would boost tax collection, while 44% said it would generate jobs.

On Monday, the ANJL hit out at ABRAS’ video, titled “History of Bets”, which linked the regulated betting sector to food insecurity in Brazil.

In the video, ABRAS makes claims that every Brazilian real spent on betting leads to “one less dish on the table” and a “bill that is late”, with the retail sector allegedly missing out on BRL103 billion ($18.7 million) in revenue last year due to gambling.

However, the ANJL responded by highlighting official data from the Brazilian Institute of Geography and Statistics that instead showed the retail sector recorded growth of 4.7% in the last year.

In the ANJL’s view, the video goes beyond “criticism of specific agents and affects the sector as a whole”.

ANJL President Plínio Lemos Jorge said: “The retail sector has decided to choose someone to blame for the rise in food prices on families’ tables. And, in their opinion, betting companies are responsible.

“This is absurd, because it spreads fake news that aims to attack a legitimate sector of the economy, which will generate more than BRL4 billion in taxes this year alone. Reducing the country’s budgetary issues to the regulated betting market is irresponsible and simplistic.”

ANJL takes aim at ‘silent predator’ claim

Additionally, the ANJL took exception to the labelling of online gambling as a “silent predator”, accusing the video of being offensive and including a “tone of misinformation”.

The ANJL believes the video fails to differentiate properly between licensed betting operators and their illegal counterparts, which divert billions of reals away from public revenue in Brazil.

“Nobody came in stealthily, as the video says,” Lemos Jorge continued. “The names of the legalised houses are public and can be consulted by anyone on the federal government websites, which also publishes information every time a betting company is authorised to operate in the country.

“ABRAS may be against the betting sector, but it cannot disseminate false information.”

Focus on 12% Brazil betting tax also challenged

The ABRAS video also states operators only pay 12% in tax, claiming the retail sector’s tax burden is unfair in comparison.

“It makes no sense for a betting game to pay less tax than you pay to eat,” the video says.

In response, the ANJL called the 12% tax figure an “erroneously mentioned fact”, highlighting this figure is only on gross gaming revenue. It said that when combined with other taxes such as PIS/Cofins and municipal contributions, the effective tax rate is around 38%.

This is set to increase, too, with the government publishing a provisional measure last week that raises the tax rate on GGR to 18%, a 50% hike.

While the provisional measure is effective immediately, Brazilian law states the contributions will only be collected from 90 days after its publication on 11 June.

The Senate and Chamber of Deputies will have 120 days from the measure’s publication to vote on whether to make the tax increase permanent.

Brazilian newspaper Metrópoles yesterday reported Senate President Davi Alcolumbre has told leaders he will schedule the vote on land-based gambling as a matter of urgency.

The bill, PL 2,234/2022, was approved by the Justice and Citizenship Committee in June 2024. However, the subsequent Senate vote was postponed on numerous occasions.

It seemed unclear when exactly the vote would happen, although Minister of Tourism Celso Sabino believed it would be carried out in H1. The appointment of gambling advocate Alcolumbre as Senate president in February suggested the matter could be prioritised.

There isn’t expected to be any resistance from Brazil’s president, Luiz Inácio Lula da Silva, who will give the final approval if the Senate votes in favour of the bill.

Study shows land-based gambling support in Brazil

The launch of the online gambling market in Brazil on 1 January has been blighted by various criticisms about the betting sector. Today licensed digital operators are battling higher tax rates and new gambling ad restrictions as the government seeks to alleviate fears over gambling harm and make up for budget losses elsewhere.

But the public desire for casinos and retail sports betting is clear, as a state-funded DataSenado survey, released in April, indicated there was significant support for this legalisation.

DataSenado, a research institute linked to the Transparency Secretariat of the Federal Senate, found 60% of the adult population in Brazil is in favour of legalising land-based gambling. Just 34% said they were outright against the proposal.

Of those surveyed, 58% agreed the legalisation of land-based gambling would boost tax collection in Brazil. Meanwhile, 44% stated it would increase the number of jobs.

Evangelical opposition remains

Despite this public support, there remains significant opposition from the evangelical sector in Brazil.

Evangelical Parliamentary Front President Gilberto Nascimento told Poder360 his party would not support land-based legalisation.

“I will ask everyone to be against it,” Nascimento said on 13 April. “We will mobilise.

“Everyone is addicted [to gambling], just look at what is happening with [online] betting. Casinos and physical games tend to get worse. Brazil is not a country with a vocation for gambling.”

The betting CPI was established in November last year, with the aim of investigating the “growing influence of online virtual gambling games on [Brazilian families’ financial spending]”.

However, the entity faced significant criticism, being accused of extortion in December after a Veja magazine investigation. Then-Senate President Davi Alcolumbre rejected a request to further extend the CPI’s deadline, describing the commission as a “circus”.

The CPI has now come to a humiliating end, with the report from its rapporteur, Senator Soraya Thronicke, rejected on a vote of four to three on Thursday.

It means none of the measures proposed by Thronicke will be adopted, leaving the industry with more questions than answers amid a time of significant uncertainty. In the last two weeks tax rises and additional advertising restrictions have been enforced by politicians, placing significant pressure on the sector.

Despite the report’s rejection, Thronicke says she will still send the documents to authorities, such as the Ministry of Finance and the Federal Police, for review.

What was in the betting CPI report?

Thronicke’s report sought to indict 16 people, including digital influencers Virgínia Fonseca and Deolane Bezerra, for offences relating to fraud and illegal gambling.

With the report only presented on Tuesday, Senator Angelo Coronel said there simply wasn’t enough time to properly analyse its findings.

Coronel, who voted to reject the report, explained: “I don’t feel comfortable voting on something I haven’t read.”

Alongside the indictments, Thronicke also presented 20 bills with the intention of suppressing gambling harms, including a ban on the controversial Fortune Tiger game, which has been linked to fraud and scams via influencer marketing schemes.

Thronicke also sought to ban betting among those registered with the social welfare programme CadÚnico, as well as implementing a prison sentence of between one and four years for those not adhering to gambling advertising regulations.

Additionally, Thronicke recommended prison terms of between four and eight years and a fine for those operating online gambling without a licence.

Other measures such as the introduction of a maximum three-hour period of betting per day and the creation of a national self-exclusion scheme were also rejected.

Why did the betting CPI fail?

Senator Eduardo Gomes raised wider concerns about the effectiveness of CPIs, claiming they needed to be overhauled.

“I don’t like CPIs. I think they work incorrectly,” Gomes said. “An effective change in how they work is needed, or we will have one CPI after another, harmed by their own functioning.”

Across 21 meetings, the betting CPI heard from only 19 people, just over 10% of the allocated testimonies. Six of those summoned failed to appear.

Additionally, only half of the 192 requests for confidential information from the Financial Activities Control Council were approved.

Senator Eduardo Girão initially said he would vote against the report due to the conduct of the CPI, although he later gave his approval due to its “interesting measures” on restricting betting.

Girão noted that none of his eight requests were approved and also highlighted the previous claims of extortion.

CPI President Dr Hiran Gonçalves responded to Girão, saying: “I don’t accept insinuations. Say the name. It’s bravado. We can’t be vague – when we are vague, we attack people who don’t deserve to be attacked.”

Alternative view added to final report

On Tuesday, Senator Izalci Lucas also presented an alternative report, which included measures such as a ban on advertising on radio and TV between 6am and 10pm, as well as making the damages caused by abusive advertising a joint liability between betting sites and digital influencers.

Although Izalci’s report was first listed as a separate vote, Thronicke added a section to her own final report.

During the vote, however, senators only reviewed Thronicke’s text and decided not to vote on Izalci’s, believing it was compromised.

Senator Gomes criticised Izalci’s report for its exposure of confidential financial data of people under investigation.

The tax rise edged closer on Wednesday in the form of PM No 1,303, which amended Law No 13,756/2018, the betting law which relates to tax.

Of that 18%, 6% will be allocated to social security and health contributions, while the other 12% will be split among other sectors, such as sports and education.

While the provisional measure comes into effect immediately, the Senate and Chamber of Deputies must still vote on the tax rise before it is made permanent.

On Sunday, Minister of Finance Fernando Haddad confirmed the government’s intention to amend the nation’s gambling laws to increase the tax on GGR from 12% to 18%, a 50% hike.

The announcement confirmed the industry’s fear of raised taxes, which had been sparked by the government’s decision to revoke a decree that would raise the rate of financial transaction tax (IOF) from 0.38% to 3.5%.

To offset the financial impact of eliminating the IOF decree, National Bank for Economic and Social Development President Aloizio Mercadante advocated for a tax hike on Brazil’s gambling sector.

Illegal gambling also in law change

As well as increasing the GGR tax rate, PM No 1,303 also targets illegal gambling, with the black market continuing to be an issue in Brazil.

In response, the government has amended betting Law No 14,790/2023 to mandate companies providing internet connections and applications to maintain an “exclusive, permanent and functional” communication channel with the regulating Secretariat of Prizes and Bets to boost cooperation in closing down illegal sites.

Article 21 of Law No 14,790 has also been amended to ensure telecommunication companies implement internal procedures to counter illegal sites. They have now been banned from working with black market operators.

Other measures include expanded powers to sanction sites and companies linked to illegal betting, as well as match-fixing.

Earlier this year, Brazilian Institute of Responsible Gaming (IBJR) cofounder and CEO André Gelfi estimated illegal operators still accounted for around 60% of Brazil’s betting sector, despite the legal market launching on 1 January.

Brazil gambling industry left fuming by tax rise

The industry response to the tax hike has been spearheaded by the IBJR, which has expressed its “vehement indignation” of the measure.

According to the IBJR, the legal market has already paid over BRL2.3 billion ($415.3 million) in licence fees, with the sector’s planning based on the previous GGR tax rate of 12%.

The body believes any changes in the middle of onshore operators’ five-year licence period could compromise the economical and financial balance of the sector.

“The measure is unacceptable and makes it impossible for many companies that trusted and invested in the regulated market to operate, generates legal uncertainty and threatens public revenue,” the IBJR said on LinkedIn.

Additionally, the IBJR raised concerns over how the new tax rate could impact the viability of licensed operators, thus fostering the black market.

“By raising the tax on [licensed] bets, the illegal market [will likely] grow from the current 50% to at least 60% [of total market share], generating an estimated loss of more than BRL2 billion per year in revenue,” the statement continued.

“The way to increase collection is not to penalise those who operate within the law, but to rigorously combat illegality and protect bettors by following the regulation of the sector.”

Could there be further gambling tax increases in Brazil?

Despite the industry furore, Brazil’s Vice President Geraldo Alckmin has suggested the tax rate on gambling could yet be increased further.

According to CNN Brasil, Alckmin stated the government could look to work with the Congress to raise the tax burden on legal operators above the new 18% rate on GGR.

During a Brazilian Association of Supermarkets event this week, Alckmin said: “The government’s proposal is to increase it to 18%, but we can work with Congress to be able to take another leap.

“We need to increase the tax [on bets]. Not just 18%, which is the government’s proposal, but 27%. This will prevent many families from being harmed.”

On 3 June the government issued a Senate bill that called for a financial transactions tax (IOF) rate increase from 0.38% to 3.5%, but this was ultimately revoked.

The gambling tax hike is an alternative to increasing the IOF itself. The IOF applies to foreign transactions and changes can be applied immediately, unlike many other tax changes.

But at the time, National Bank for Economic and Social Development President Aloizio Mercadante suggested increasing the Brazilian gambling sector’s tax burden, in order to offset revenue lost by revoking the IOF decree.

The change in tax rate has been included in an amendment of Brazil’s IOF policy.

Haddad said in a statement that the provisional measure on the IOF will “allow us to recalibrate the IOF decree, reduce the expected rates, and bring compensatory measures to maintain tax obligations”.

João Rafael Gandara, a tax specialist lawyer for Brazilian law firm Pinheiro Neto Advogados, told iGB recently the measures aligned with the government’s goal of reducing the deficit to zero in 2025.

Gandara also noted that with Brazil holding general elections next year, the IOF changes could be a desperate last-ditch attempt by President Luiz Inácio Lula da Silva to achieve that target, despite pressure by legislators to revoke any IOF increases.

On top of the tax on GGR, operators in Brazil currently face a 9.25% PIS/Cofins tax and municipal taxes of up to 5%.

PIS tax is a federal social contribution calculated as a percentage of revenue, while Cofins is a monthly federal social assistance contribution that is also based on a revenue calculation.

But the country is currently transitioning to a new tax system that would replace PIS/Cofins with a dual tax system of tax on goods and services and contributions on goods and service.

The provisional measures announced on Sunday will not come into force immediately and will need to be approved by the Chamber of Deputies and the Senate.

Sector speaks out on tax hike

The Brazilian Institute of Responsible Gaming (IBJR) has expressed its “vehement indignation” at the proposed increase in taxation for the sector.

“The measure is unacceptable and makes it impossible for many companies that have trusted and invested in the regulated market to operate, creates legal uncertainty and threatens public revenue,” the IBJR said in a statement Monday.

IBJR noted that since the beginning of 2025, legal operations in the market have paid R$30 million ($5.2 million) each for a five-year concession. This amounts to roughly R$2.3 billion already collected by the Ministry of Finance.

“The sector’s planning was structured based on the current rate of 12% and any change in the middle of the contract compromises the economic-financial balance and confidence in the regulatory environment,” IBJR said.

It has also warned that an increase in online betting taxes would result in the black market growing from 50% to 60%.

While the organisation said it would continue to seek dialogue with the government and national congress on the issue, it has not ruled out court action.

Brazilian gambling operators were already concerned

At the beginning of the month, six of the largest gambling trade associations in Brazil issued a joint statement warning of the damage that increased taxation would have on the market.

The IBJR and the National Association of Games and Lotteries jointly penned a letter in response to the Senate bill that called for the IOF rate increase from 0.38% to 3.5%.

According to the associations, the 79 operators currently licensed have already contributed over BRL2.4 billion in authorisation fees. Their tax and social contributions in 2025 are expected to exceed BRL4 billion.

“In this scenario, it is unjustifiable – from any technical, economic or public policy perspective – to impose new tax burdens on a sector that is already extremely burdened and contributes significantly and responsibly to the country,” the associations said in their joint statement.

Loterj’s capability to award sports betting tenders to its licensees predates the federal government’s current online gambling regulations, which came into force last year.

Its first sports betting tender was issued in July 2023, a year and a half before Brazil’s federal legal betting market launched in January 2025.

But, a month into the new market, Brazil’s Supreme Federal Court (STF) voted to uphold a preliminary injunction preventing Loterj from its licensees operating nationwide under pressure from the attorney general’s office.

The court insists Loterj licensees can only offer bets within the state of Rio de Janeiro. In its latest ruling, the STF demanded Loterj lottery and betting licensees install geolocation tracking to ensure they are only operating betting within the state.

Lopes Cançado describes the situation as “artificial and technically unsustainable”. He says Loterj licensees generate positive social change throughout Brazil through their funding of state departments.

“These revenues, generated by local lotteries … finance actions in health, education, sports and social assistance, especially for those who need them most. Interfering in this cycle of progress is penalising the vulnerable population.”

He reiterates the state lottery body is “fully committed to following its mission and ensuring that its licensed operators can operate throughout the national territory”.

Does the preliminary status of the injunction give Loterj hope?

Lopes Cançado stresses the STF’s injunction on Loterj’s activities is only preliminary.

He has faith the STF will ultimately rule in favour of Loterj, instead of making the current measures under the injunction permanent.

“The STF decision is, for now, only a preliminary injunction,” Lopes Cançado notes. “This restriction not only harms the competitiveness of the sector and the revenue of the states, but it also does not reflect the reality of the digital environment, which, by its very nature, knows no physical borders.

“I am confident that, when the case is analysed in more depth, the need for a more modern, fair and efficient regulatory model for all will prevail.”

Lopes Cançado sees Loterj as a “leading disruptor” in the Brazilian betting and lottery market and doesn’t feel the STF’s preliminary injunction and ongoing legal uncertainty will affect operators’ confidence in the state lottery.

“Loterj is not shaken. We remain firm, because we have what many still seek: credibility, legality and total transparency.

“We act with technical rigour, within the law and with absolute commitment to the public interest. And it is precisely for this reason that confidence in Loterj only grows – among partners, institutions and, mainly, among the population.”

Unfair competition from illegal operators a key concern

A common theme since Brazil launched its federal online market is the still thriving illegal market.

The Loterj president believes the impact of the black market is leading to reductions in state revenues that could finance public policies, while also discouraging investment in the licensed market and exposing players to the perils of illegal operators.

Lopes Cançado calls for a “coordinated approach” from the government to tackling the issue.

“Without a coordinated approach, the regulated market runs the risk of losing competitiveness in the face of an environment of informality that is growing out of control,” he says.

The future for Loterj

Loterj has taken strategic steps this year to bolster its land-based offering, by establishing an internal committee in April to conduct research and technical studies on video lottery terminals.

“We are focused on consolidating Loterj’s role as a responsible, efficient and transparent institution that contributes significantly to the social, cultural and economic development of the state of Rio de Janeiro,” Lopes Cançado concludes.

“Loterj’s long-term vision is to be a reference institution in the lottery sector, with a strong social commitment and efficient management, promoting collective well-being and the development of the state of Rio de Janeiro, while adapting to market transformations and facing global challenges with innovation and responsibility.”

He is calling for enforcement to be stepped up to improve the position of licensed operators.

Betano was the first to apply for a licence in Brazil last year and H2 Gambling Capital ranks it the regulated market’s current leading operator.

But like its licensed peers, Betano has faced early challenges, namely getting to grips with strict new KYC requirements and the still prominent illegal market. Becoming licensed in the market was expensive and arduous for operators, with many barriers to entry.

Despite the lengthy process, which promised to benefit licensees through stronger player protections and a heavy clampdown in the black market, illegal operators remain at large.

In March, Brazilian Institute of Responsible Gaming (IBJR) co-founder and CEO André Gelfi warned the illegal market was still accounting for around 60% of monthly GGR in the country.

Spanoudakis says the “very sizeable black market” remains the primary challenge for licensed operators in Brazil.

“Online gaming is a large and rapidly growing industry that must operate responsibly,” he tells iGB. “A key part of that is eliminating the black market and players migrating to the legal ecosystem.

“Of course, when illegal operators flourish, the state loses significant tax revenue that could otherwise be reinvested in public services, including prevention and treatment programmes.”

Despite these ongoing concerns, Spanoudakis feels it’s necessary to acknowledge the progress that has been made since Brazil’s 1 January market launch.

“Of course, due to the sheer volume of unauthorised operators, tackling the black market will be a complex and time-consuming effort,” Spanoudakis continues.

“[But] many players have already begun transitioning from unregulated platforms to licensed, legal operators, which is a positive sign for the future of the Brazilian market.”

Did the delays to regulation in Brazil actually help?

Brazil’s journey to regulated online gambling was fraught with delays, as around five years passed between the National Congress first approving legislation and the Chamber of Deputies giving the final go-ahead.

In Spanoudakis’ view, this gave Brazil the time needed to draw from international experience and best practices, to establish a “comprehensive and largely complete regulatory framework”.

“While the country was relatively late in regulating the market, the delay provided an opportunity to learn from more mature jurisdictions and adopt proven strategies,” he explains.

“The authorities consulted with international operators and experts on betting and responsible gaming to shape their regulatory framework.”

KYC requirements a double-edged sword

As part of the new framework, the regulating Secretariat of Prizes and Bets (SPA) introduced a raft of stringent new KYC restrictions for operators.

Now, Betano requires customers to submit their full name, date of birth and Individual Taxpayer Registration (CPF) number at the point of registration.

Then, Betano conducts a thorough identity and age verification process, utilising both public and private databases, as well as mandatory facial recognition technology.

The integration of facial recognition technology process has proved one of the biggest challenges, according to Spanoudakis.

“Not only does this require a high level of technical sophistication, but it also demands a seamless user experience to prevent friction during onboarding,” Spanoudakis says.

While the KYC requirements are “essential” in Spanoudakis’ view, they’ve also impacted the competitiveness of licensed operators in Brazil against the black market, where players don’t face the same level of friction.

“Legal operators are investing heavily in robust verification systems, facial recognition technology and compliance infrastructure, all of which can create a more complicated and time-consuming onboarding experience,” Spanoudakis adds.

“Meanwhile, offshore operators often offer instant access with no identity checks – becoming accessible even to minors and vulnerable groups – and creating an illusion of convenience.

“It highlights the need for stronger enforcement against illegal operators and public awareness campaigns to help users understand the value of a safer, compliant betting environment.”

Fears of overregulation and black market impacts

Spanoudakis has faith in the current regulatory framework and believes it is one of the best not only in LatAm, but across the globe.

His confidence lies also in the SPA avoiding overly restrictive measures seen elsewhere, at least for now.

But with the Brazilian Senate last week approving new measures on advertising, such as watersheds on gambling ads and a ban on celebrity endorsements, Spanoudakis emphasises the importance of balanced regulation.

“Excessive regulation can drive players away from licensed operators and push them toward the black market, which undermines the goals of regulation in the first place,” he says.

Current regulation backed despite the hurdles

Despite the market’s early challenges, Spanoudakis feels the influx of international operators demonstrates the attractiveness of Brazil as a market, as well as the value of the SPA’s regulatory framework.

“Of course, challenges remain, but we recognise that Brazil is undergoing a complete market transformation and, naturally, it will take time for all elements to fully settle,” Spanoudakis concludes.

“There is a shared understanding from the majority of stakeholders, including operators, authorities and customers, that a strong regulatory environment is essential for long-term industry growth and for effective consumer protection.”

On Tuesday, associations such as the Brazilian Institute of Responsible Gaming (IBJR) and the National Association of Games and Lotteries (ANJL) responded to a Senate bill which called for a financial transactions tax (IOF) rate increase from 0.38% to 3.5%.

The IOF applies to credit and foreign transactions and can be applied immediately, unlike many other tax changes.

The government issued Decree No 12,466/2025 proposing the change on 22 May, but has since faced pressure from Congress, which hinted at revoking the decree.

But National Bank for Economic and Social Development President Aloizio Mercadante subsequently suggested increasing the Brazilian gambling sector’s tax burden, in order to offset the revenue lost by revoking the IOF decree.

It has been reported the Ministry of Finance would need to collect around 77% of the current monthly revenue made by gambling operators in Brazil, to make up for the approximately BRL20 billion ($3.5 billion) in taxes it is seeking to collect from the IOF increase.

In the joint-statement, the associations warned further taxes could bring the viability of regulated online operators into question.

“Entities representing the betting sector in Brazil express deep concern and vehement disagreement regarding the possibility of increasing the tax burden on operators legally established in the country,” the statement read.

According to the associations, the 79 operators currently licensed have already contributed over BRL2.4 billion in authorisation fees. Their tax and social contributions in 2025 are expected to exceed BRL4 billion.

“In this scenario, it is unjustifiable – from any technical, economic or public policy perspective – to impose new tax burdens on a sector that is already extremely burdened and contributes significantly and responsibly to the country,” the statement continued.

Brazil gambling tax system explained

Currently, alongside a 12% tax rate on GGR, operators also face a 9.25% PIS/Cofins tax, as well as municipal taxes of up to 5%.

Additionally, operators are taxed on around 34% of their profits, with 25% in the form of corporate income tax and 9% in social contribution taxes.

Brazil is transitioning to a new tax system, which would see PIS/Cofins replaced by a dual tax system of tax on goods and services and contributions on goods and services, with the associations estimating this could raise the tax burden by another 13% on gross revenue.

With Brazil also floating a consumption tax, which some have described as a “sin tax” on gambling, the associations warn the industry is nearing a tax burden of close to 50%.

“Brazil currently has a historic opportunity to consolidate a mature model of gambling regulation, with high revenue-raising capacity, commitment to market integrity and citizen protection,” the statement said. “It is essential to avoid irreversible setbacks.”

João Rafael Gandara, tax specialist lawyer at Brazilian law firm Pinheiro Neto Advogados, believes the measures align with the government’s goal of reducing the deficit to zero in 2025.

With Brazil holding general elections next year, Gandara tells iGB the IOF increase could be a desperate last-ditch attempt for President Luiz Inácio Lula da Silva to achieve that target, despite growing pressure to revoke the IOF rise.

Could the illegal market in Brazil be strengthened?

Similarly to the response to the Senate last week approving new restrictions on advertising, the industry warns further taxes could risk the viability of online operators, while empowering the black market.

The associations cited the international experiences of Italy and Spain, where excessive taxation of newly regulated markets has led to the illegal market expanding and a loss of revenue for governments, while also weakening regulation.

“The adoption of measures that compromise legal operations tends to cause the opposite effect to that desired: the strengthening of clandestine platforms that do not collect taxes,” they added.

“In Brazil, the risk is already evident: while the regulated market moved around BRL3.1 billion per month in the first quarter of 2025, the illegal market operated with estimates of between BRL6.5 billion and BRL7 billion per month – figures that are completely beyond the control of the state.”

Could land-based legalisation provide an alternative?

Despite Brazil launching its regulated online betting sector on 1 January, it is still unclear when land-based legalisation could arrive.

Brazil’s Minister of Tourism Celso Sabino previously predicted the Senate vote would happen in H1 this year, although time is rapidly running out on that expectation.

Gandara believes land-based legalisation could provide the government with the tax revenue it desires.

“To look at the bright side for gambling companies, especially with talks about [land-based] casinos, that would be an opportunity,” Gandara adds.

“[At April’s SiGMA Americas Summit in São Paulo] there was the senator that has the bill to allow casinos operations in Brazil and he was discussing it as a compensation for some type of taxes. And I think this may be at least the time appropriate time for that.”

Although the bill’s rapporteur, Senator Carlos Portinho, eliminated a blanket ban on gambling ads from the proposal, the approved bill does include a ban on betting ads during live sporting broadcasts. The use of celebrities, influencers and athletes in any marketing material will also be prohibited, with the ban only applying to current players or those whose career ended less than five years ago. 

With both the Sports Commission and Senate having now approved the amended bill, it is headed to the Chamber of Deputies for review. 

The new law will likely not take effect until 2026, says Udo Seckelmann, head of gambling & crypto at local law firm Bichara e Motta Advogados. Seckelmann says he is relieved the “disproportionate” blanket ban has been eliminated, although he warns the push for further restrictions “lacks evidence-based support”.

“The motivations, although well-meaning, must be weighed against real-world outcomes – and the evidence suggests that informed, responsible regulation is more effective than prohibition,” Seckelmann explains. 

Current Brazil gambling ad regulations are sufficient

The Secretariat of Prizes and Bets (SPA) published Normative Ordinance No 1,231 in July last year, laying out how licensed operators could advertise their products. The regulations included restrictions on operators presenting betting as “socially attractive” or using ads to target children or adolescents. 

Additionally, all advertising from licensed operators was mandated to display an “18+” symbol and be guided by social responsibility and the promotion of responsible gambling. 

Lawyer Luiz Felipe Maia, founding partner of Maia Yoshiyasu Advogados, believes current restrictions on advertising are adequate, especially with Brazil having only just regulated its iGaming sector. 

“I think the current regulation is sufficient in protecting people, and they are coherent with this stage of the market, because Brazil has just become regulated,” Felipe Maia tells iGB.“When you have a new regulated market, it’s important to allow the regulated operators to advertise and to become known to the public, so that you can drive the public to those regulated operators. I think it’s [important] that we don’t have that many restrictions, such as in other regulated but more mature markets.” 

Fellipe Fraga, chief business officer at licensed operator EstrelaBet, agrees the current regulations are sufficient. “I believe it’s enough,” Fraga says. “Most important is to have conscience. The politicians and other regulators understand that the market is okay [as it is] and all the world is doing [online betting], so we can also advertise.” 

On the other hand, Betsul CEO Fernando Garita is keen for the advertising regulations to be more clearly defined. Garita is calling for clarity and consistency from the SPA: “A better balance is needed – one that enables responsible messaging without stifling legitimate commercial activity.” 

Enforcement is the priority 

While the licensed sector is generally content with current ad restrictions, many stakeholders are urging stricter enforcement be applied, especially when it comes to influencer advertising, which last year became a sector, and national media topic du jour.  

The game “Fortune Tiger” faced huge controversy last year. Influencers were investigated and in some cases arrested, after marketing the game to their followers and promoting attractive financial rewards. Many players ended up losing large sums of money playing the game on fraudulent sites. 

Since the scandal, the SPA has taken steps to further restrict influencer advertising. Internet personality Virgínia Fonseca appeared in front of the parliamentary inquiry commission for betting in May to be questioned over advertising gambling to her huge online following. 

Felipe Maia believes the SPA should crack down on those infringing upon current regulations. “I think if we start to have these cases where digital influencers will be held liable, have to pay fines and maybe be arrested for working with illegal operators or not complying with advertising rules, we will start to see different behaviours,” he insists. 

Overregulation risks empowering the black market 

The Brazilian gambling sector is by no means the only market experiencing pressure over its gambling advertising. Looking elsewhere at more mature markets, it’s understandable there are fears over the consequences of further restrictions. 

Germany, where nearly half of all players bet with the black market, has a ban on TV and online advertising between 9pm and 6am, as well as restrictions on showing sports clips in ads and partnering with sports personalities. 

Italy, which has a blanket ban on gambling advertising, is experiencing serious black-market issues, while Brazil’s neighbour Argentina has also taken steps to introduce a ban on online betting advertising. 

With licensed operators in Brazil already concerned by the presence of the black market, the industry fears more stringent regulations on advertising would only strengthen illegal companies, as seen in other nations. 

“Experience from countries like Italy shows that excessive restrictions and high taxes can backfire,” Garita explains. “Blanket bans would significantly reduce the visibility of regulated operators, while illegal ones would continue to thrive through uncontrolled channels like Telegram. 

“If you have a market becoming regulated with too many restrictions for advertising, basically you’re hurting channelisation and you are aiding the black market,” Felipe Maia adds. 

Gambling ads helps identify legal operators 

In fact, advertising is actually a hugely important tool for operators to demonstrate they have a licence and channel bettors into legal offerings, particularly in the early stages of a licensed market’s development, when competition among brands is fierce and player loyalty has not yet been established.  

With licensed operators’ advertising required to have an “18+” symbol, as well as information on the associated risks of addiction and pathological gambling disorders, Garita says the role of advertising in distinguishing legal from unlicensed operators is “a crucial one”. 

Garita says: “Advertising is one of the few public-facing tools we have to demonstrate that we operate legally.  

“It allows us to build trust, promote safety, educate users and show that we work within a regulated framework. Eliminating that visibility blurs the lines between legal and illegal operations – posing a major risk to consumers.” 

And even with advertising providing that distinction, markets like Sweden have found a high percentage of players still cannot distinguish legal operators from black market brands.  

What’s behind the negative public perception of gambling?  

Significant pressure was put on Brazil’s gambling sector in 2024, during a crucial period of establishing regulation. A Supreme Federal Court hearing in November was initiated after a leading trade union accused the new betting laws of being unconstitutional, amid fears that betting leads to high addiction levels and family debt. 

But four months into licensed betting, the public opinion towards betting seems to be improving, and in April a government-funded survey by DataSenado reported 60% of the population is now in favour of legalising land-based gambling. Part of the industry’s frustration lies in the belief that politicians are responding to public pressures, rather than data and global sector experiences that prove why ad restrictions could have unwanted consequences. 

But some politicians, particularly the rapporteur of the new advertising restrictions bill, have adopted a negative rhetoric around gambling, insisting it is harming public health and finances.  

Political echo chamber

Felipe Maia believes there isn’t actually a negative public perception of gambling in Brazil and asserts politicians are simply repeating the concerns of specific groups. “Basically, they’re responding to their echo chambers,” he says.  

“If they’re religious, they are responding to the groups they represent. If they’re more conservative, they are saying [these things] because this echoes well to their public. What you have is an opportunistic approach by some politicians to use this for propaganda purposes.” 

The situation is complicated further by Brazil’s long history of gambling prohibition, with the sector essentially made illegal in 1946. This has resulted in a lack of political understanding.  

“We’re trying to make them understand and, of course, in Brazil, with 80 years with cultural prohibition of gambling, they don’t really know yet what our industry does, what you can provide for the country,” says Fraga. “It’s a process for us to teach them, to explain to them [how our industry works] and to avoid those views, because many of these [bills] are talking about misconceptions.” 

What’s the solution? 

Ultimately, an effective response to Bill 2,985/2023 from Brazil’s betting sector could be handicapped by fragmented representation of the industry. 

According to Felipe Maia, there are five trade associations that represent betting companies, causing a lack of coordination and likely a weakening of the industry’s response to any perceived overregulation. 

“I had this complaint from a congressman. What they say is it’s very hard to deal with this industry, because they get different inputs from different associations and then they don’t know who to trust,” Felipe Maia declares. 

Collaboration is the way forward in Garita’s view. He agrees there is fragmentation in industry representation and that complicates the formation of an effective response. 

“Lobbying efforts and collective action by responsible operators and associations will be crucial,” Garita adds. “We need unity and coordination to defend common interests.” 

During the Sports Commission hearing to approve Bill 2,985/2023 in 28 May, Senator Portinho said the changes were necessary due to the sector’s inability to police its own advertising activities.   

Felipe Maia urges operators to self-regulate where possible, to prove they are good actors. “I think self-regulation shows social responsibility, maturity. And it allows you to come up with solutions that work for the industry before someone comes with an idea that will not work,” he says. 

Critical juncture coming up 

As Seckelmann explains, an assertive but constructive approach to advertising regulations could help mitigate the negative opinion held by politicians. “It is essential to emphasise that advertising, when done responsibly, plays a key role in channeling users toward licensed, safe operators and away from illegal sites,” he reiterates. 

As it stands, those seeking to restrict gambling look to be edging the battle, especially with the industry’s current inability to form a collective, data-driven response that effectively warns against the perils of overregulation on advertising witnessed in other markets. 

The industry’s point is clear: Overly restrictive measures on ads at this point in Brazil’s regulated online journey could prove disastrous and drive players out of the licensed sector. 

As the Chamber of Deputies, the Senate’s final stage, prepares to evaluate Bill 2,985/2023, Brazil’s betting sector must act quickly to make its case against the perceptions that threaten to damage the legal market’s progress.

Monday, the Secretariat of Prizes and Bets (SPA) reinstated Logame do Brasil Ltda and Sortenabet Gaming Brasil SA’s licences after they filed the necessary technical documents with the regulator.

Normative Ordinance No 722, published last year, requires operators to submit an evaluation report of their betting systems to the SPA. Recognised certifying entities must issue the report, which operators must then submit to the regulator within 90 days of receiving licensing approval.

EA Entretenimento e Esportes and Bet.Bet Soluções Tecnológicas SA quickly filed their reports last week, upon the list’s release. Then a federal court granted a preliminary injunction to Pixbet to reinstate its licence, as is it the primary sponsor for Flamengo football club. It is illegal for unlicensed brands to sponsor and feature in any sporting games, so a judge quickly reinstated Pixbet’s licence ahead of Flamengo’s match on the weekend.

Now, just Bell Ventures Digital Ltda and Betesporte Online Betting Ltda remain on the list. It means the SPA will allow Logame do Brasil’s LiderBet, GeralBet and B2xBet brands, and Sortenabet’s SorteNaBet, Betou and BetFusion to continue operating.

Are the SPA licence suspensions fair?

Back in April, the SPA similarly suspended the licences of four operators that had failed to present technical certificates.

These suspensions included Pixbet, which also had its licence reinstated by a federal court decision at the time.

Brazilian lawyer Fabio Ferreira Kujawski told iGB the licence suspensions were unfair.

In his view, the actions could demonstrate a “certain lack of dialogue and understanding” from the regulator.

“In our view, the suspension of the authorisation was a disproportionate response to the infraction committed,” Kujawski said.

“The SPA needs to understand that there are several companies already established in the market, with million-dollar sponsorship contracts, and that a suspension of authorisation should only occur in extremely serious cases of repeated violations of Brazilian law.”

Kujawski feels the SPA should assert authority over Brazil’s market, but must also find a balance.

“This cannot translate into an agency that applies sanctions in a disproportionate manner or adopts an inquisitorial stance against the sector it regulates,” Kujawski added.

“A balance must be struck between an active agency and a belligerent one. I am convinced that the SPA will find this right path.”

Article 8 of Normative Ordinance No 722, which establishes the technical requirements for betting systems, says operators must submit an evaluation report of their systems within 90 days of being awarded a licence. This must be issued by a certifying entity, recognised by the regulator.

The SPA claims the companies’ failures to provide those reports affects the safety of bettors and the economy, as well as the government’s fight against money laundering.

According to the SPA, failure to provide these reports could lead to a sanctioning process being initiated, with a daily fines of BRL40,000 ($6,960) potentially applied to those that continue to breach the precautionary measures.

The list of suspended operators now stands at just four, however, after EA Entretenimento e Esportes and Bet.Bet Soluções Tecnológicas SA announced they had sent the required documents to the SPA, while Pixbet’s licence was reinstated via a court decision.

The operators and brands that remain suspended are:

Pixbet again avoids SPA suspension

Back in April, Pixbet had its licence suspended by the SPA for failing to present the regulator with the necessary technical certifications covering its betting systems.

However, Pixbet’s licence suspension would last less than a day, as federal court Judge Anderson Santos da Silva overturned the effects of the SPA’s suspension.

At the time, Pixbet claimed its initial suspension was “illegal and disproportionate”, with the operator suffering “reputational and economic damages” due to its BRL470 million master sponsorship of Flamengo, a top-flight Brazilian football club.

On both occasions the operator has seen its case expedited by the federal courts to ensure it could have its licence reinstated before Flamengo played a match. Both of Pixbet’s licence suspensions occurred on a Friday, with Flamengo playing a match the following weekend.

This time, it was Judge Leonardo Tavares Saraiva who acknowledged the “periculum in mora”, translating to “danger in delay”, granting Pixbet a preliminary injunction to ensure its Pixbet, Flabet and Bet dá Sorte brands could continue operations.

Discussing Pixbet’s first licence suspension back in April, lawyer Fabio Ferreira Kujawski told iGB he felt the suspension was a disproportionate response to the infraction committed by the operator.

“A suspension of authorisation should only occur in extremely serious cases of repeated violations of Brazilian law,” Kujawski said.

“Before suspension, other sanctions should be applied, such as warnings or even fines. Suspension of authorisation should only be a last resort.”

Baungartner has already started work on high-priority regulatory and institutional matters, which will involve him representing the group before key industry stakeholders, such as the Secretariat of Prizes and Bets, the Federal Revenue Service and the Central Bank of Brazil.

“My focus is on managing relationships with institutional stakeholders and regulators, leading compliance initiatives, and structuring strategic partnerships and projects – all with an emphasis on consolidating and expanding the group’s presence in Brazil’s regulated market,” Baungartner tells iGB.

Esportes da Sorte gained a licence for the newly regulated Brazilian betting market in January and H2 Gambling Capital ranked the brand among its top 10 operators for market share in March.

Baungartner, who previously held the role of chief commercial officer at Brazilian operator Aposta Ganha, started his new role earlier this month.

As Aposta Ganha CCO, he helped the company become one of the first to gain a full licence in Brazil, playing a key role in the local operator joining international giants such as Bet365 and Betano in the market.

What attracted Baungartner to Esportes Gaming Brasil?

Baungartner boasts nearly 30 years of experience in the gaming industry, with strategic expansion and institutional consolidation key themes of his time at Aposta Ganha.

He feels those experiences will serve him well at Esportes Gaming Brasil, saying: “I bring with me a comprehensive view of the sector, hands-on experience navigating regulatory transition and valuable technical know-how in both operations and regulator relations.”

When asked what it is that attracted Baungartner to Esportes Gaming Brasil, he explains: “The group’s strategic positioning and commitment to regulatory compliance were key factors.

“Brazil’s current market environment demands prepared and responsible players and Esportes Gaming Brasil is one of the leading names shaping this new landscape. The group is clearly in a phase of consolidation and expansion.”

Baungartner expects to still play an active role in the industry’s conference and events circuit, believing these are essential for sharing best practices and staying ahead of regulatory and technical trends.

The excitement for the new role stems from both professional and personal motivations for Baungartner, who explains the opportunity to work alongside a highly skilled leadership team on the expansion of one of Brazil’s key players is the aspect that most interests him.

“We’re building a robust, regulated operational model aligned with international standards,” Baungartner says. “Professionally, it’s a strategic move. Personally, it’s a chance to make a positive impact on the industry in my home country.”

Targeted regional expansion a priority for Esportes da Sorte

From a commercial perspective, the strategic partnerships aspect of Baungartner’s position will focus on working with companies that support Esportes Gaming Brasil’s expansion plans.

This will entail partnerships with certified providers, fintechs, data companies and certification laboratories that can bolster the business’ position in the hugely competitive Brazilian market.

Baungartner and his team will implement a regional strategy with a priority focus on brand penetration, saying: “Brazil offers opportunities on multiple fronts, but I would highlight the South and Southeast thanks to their economic scale and the Northeast for its strong engagement and the group’s already solid presence.”

Strengthening institutional relations is also among Baungartner’s top priorities and, in his view, the biggest challenge for that objective lies in establishing a trust-based environment.

Esportes Gaming Brasil has been vocal in supporting Brazil’s regulatory process and, with Baungartner’s help, the company will continue to advocate for regulation, while also pursuing commercial aims of innovation and expansion.

“As the regulatory framework continues to evolve, it’s essential to maintain active institutional channels, ensure transparency in internal processes and collaborate with regulatory bodies on the interpretation and implementation of new rules,” Baungartner continues. “As advocates of regulation, we must be fully engaged in this collaborative phase.

“Our goal is not just to comply with the law but to actively contribute to building an efficient, safe and, above all, responsible market.”

On Wednesday, the Brazil Sports Commission greenlighted a proposal that would add a number of new betting ad restrictions in Brazil.

The next step was for the Communication and Digital Law Committee (CCDD) to take the final vote. However, the CCDD is not yet in place, and therefore Bill 2,985/2023 was forwarded to the Senate Plenary as a matter of urgency. The Brazil Senate then voted in favour of the bill.

Senator Carlos Portinho amended the bill, removing the initially intended blanket ban on betting advertising. The changes allow for limited sponsorship by sports teams and stadiums, as well as some media advertisement time slots.

Udo Seckelmann, head of gambling & crypto at Brazilian law firm Bichara e Motta Advogados, told iGB the amendments to the bill were important to mitigate the backlash from the betting sector in Brazil.

“The initial proposal for a complete ban on gambling advertising was not only disproportionate but also disconnected from the regulatory reality established by Law No 14.790/2023,” Seckelmann said.

“A blanket ban would have jeopardised the development of the legal market, driven bettors toward unregulated platforms and significantly harmed stakeholders such as sports entities, media outlets and marketing agencies.”

Brazil betting bill backlash

The Brazilian Institute for Responsible Gaming (IBJR) responded by saying it was deeply concerned about Bill 2,985/2023, warning its “severe restrictions” would open the field for the illegal market.

The IBJR said legal advertisements inform the public and help citizens to identify regulated platforms that are providing a safer gaming environment to their black market alternatives.

“The proposal weakens communication between legalised betting companies and bettors, compromising the sustainability of a regulated sector committed to responsible gaming,” the IBJR said in a statement on social media.

Football clubs in Brazil have also hit out at the advertisement restrictions.

In a joint statement shared with Games Magazine Brazil by a number of top clubs, teams have voiced their opposition to the restrictions, warning of economic peril.

The clubs have called the bill a “prohibition disguised as a limitation”, explaining the Brazil sports sector stands to lose roughly BRL1.6 billion ($281 million) as a result.

“The prohibition of brand exposure from operators on static properties signage in sporting venues, as included in the substitute’s wording, removes crucial revenue streams from clubs. The financial losses will be significant even for major clubs,” the clubs stated.

The teams also added the new rules could be detrimental to the survival of smaller clubs.

Additionally, clubs have warned that teams could face not just financial collapse but a legal fallout. This is due to the ban on static signage at stadiums. The statement noted many teams have already signed lengthy contracts with operators, which would now need to be renegotiated or terminated.

Limiting communication

Seckelmann stated that if the bill was enacted as the version approved by the commission, it would impose further limitations on how betting operators communicate with the public.

This would impact media deals and brand awareness that are essential to create a competitive but regulated market.

“International experience shows that such restrictions often fail to deliver the intended public health outcomes,” Seckelmann said.

“A clear example is Italy, where the Decreto Dignità of 2018 imposed a blanket ban on gambling advertising. Despite the measure, studies and government data revealed no significant reduction in problem gambling rates. Instead, the ban harmed regulated operators while illegal betting activities continued to thrive.”

Changes to the bill before Brazil Senate

Under Portinho’s amended bill, betting adverts during live broadcasts of sports events would be prohibited.

The use of artists, influencers or athletes would also be restricted in advertising. One exception is athletes where five years has passed since the end of their career.

Betting advertisements will only be allowed on open and subscription media sites between the hours of 7.30pm and midnight. Similarly, radio adverts are restricted to between 9am and 11am and between 5pm and 7.30pm.

A notable exception to the ban on advertising of bets in stadiums and sports venues in the text of the bill is that it allows for betting operators that are official sponsors of a stadium or sports team to advertise. This is limited to one per team when it comes to kits.   

Senator Portinho said the gambling advertisement restrictions were necessary due to the betting sector’s inability to self-regulate.

“One year after this law was passed, our society is sick, it is completely addicted to betting,” Portinho said. “Football clubs are addicted to betting. Communication companies are addicted to betting, to advertising, to the money they receive from betting.

“And with this pandemic, it is up to us to impose discipline.”

Bill 2,985/2023 received a favourable opinion from Senator Carlos Portinho, who made amendments to the text to remove a total ban on betting advertising.

The Communication and Digital Law Committee (CCDD) would have the final vote on the bill, but as the CCDD hasn’t yet been installed, the bill is expected to be sent directly to the Senate Plenary. If approved there, it will be forwarded to the Chamber of Deputies.

What would be banned in Brazil?

Under Portinho’s substitute bill, betting ads during live broadcasts of sporting events would be banned in Brazil, as well as the use of celebrities such as athletes, artists and influencers.

As an exception, former athletes who ended their careers at least five years prior could be used in advertising.

Advertising on open and subscription television, streaming, social media and the internet would be allowed between the hours of 7.30pm and midnight but banned at all other times.

For radio, betting operators would only be able to advertise between 9am and 11am and between 5pm and 7.30pm.

Additionally, advertising in printed media would be banned, as would static or electronic advertising of fixed-odds betting in stadiums and sports venues, apart from when the operator is the official sponsor of the event or holds the official naming rights of the stadium, as well as when operators are the sponsor of the kits the teams are playing in, although this is limited to one advertiser per team.

Marketing must also display warnings discouraging gambling. They would use the phrase: “Gambling causes addiction and harm to you and your family.”

However, operators would be allowed to advertise on social media platforms or elsewhere on the internet for authenticated users demonstrably over 18 years old. Users must be able to easily disable their receipt of betting advertising or communications.

Operators could also display their brands in announcements promoting the broadcast of sporting events between 9pm and 6am, but only if they don’t contain an invitation, incentive or promise of winnings from betting.

Why have the restrictions on betting ads been approved?

In Portinho’s view, the restrictions are necessary due to the betting sector’s perceived inability to self-regulate its advertising since the regulator, the Secretariat of Prizes and Bets (SPA), introduced Normative Ordinance No 1,231 on advertising in July 2024.

“One year after this law was passed, our society is sick, it is completely addicted to betting,” Portinho said. “Football clubs are addicted to betting. Communication companies are addicted to betting, to advertising, to the money they receive from betting.

“And with this pandemic, it is up to us to impose discipline.”

Portinho referenced a letter signed by several football clubs, in which they shared their fears over further restrictions on betting advertising.

Portinho believes, however, that the Brazilian population is in favour of the new measures. He described football clubs as “accomplices in an epidemic that is destroying families”.

The senator stated he was in favour of the original bill’s intention to completely ban advertising, but he made amendments to avoid legal uncertainty, with the online sector authorised and regulated by previous laws.

The author of the initial bill, Senator Styvenson Valentim, agreed the amendments were fair, saying: “Your vote was balanced. It wasn’t what I wanted, but it achieved its purpose in some points. It creates a balance for us to see how it will behave from now on.

“Maybe we’re giving the market a chance to adapt and a warning to the population that has already seen that this is harmful.”

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In December 2018, outgoing President Michel Temer signed legislation paving the way for sports betting regulations in Brazil.

However, critics of Bolsonaro claim little progress was made under his administration, with some now attributing current challenges – such as fears over rising addiction levels and family debt – to the lack of action made during that period.

Thronicke agrees, believing the grey status of the market in Brazil during that time gave way to a proliferation of betting sites, without sufficient control.

“From 1 January 2019 to 31 December 2022, who was the president? Jair Messias Bolsonaro,” Thronicke told the CPI. “And it was at that time that Brazil took first place in the world ranking for the number of bets, the number of bettors. So they let it run wild.

“I have heard from former ministers and people at the top of the former government saying that, yes, they tried, they brought this issue to the agenda. And it was part of the former government’s plan to regulate betting. And why didn’t they regulate it? Nobody answers that. Nobody regulated it.”

Thronicke believes current budget cuts can be attributed to the Bolsonaro government’s failure to regulate gambling and generate the resulting state contributions.

“The estimate is a loss in revenue of BRL15 billion per year,” Thronicke added. “Imagine BRL15 billion in 2019, 2020 and 2021 onwards!

“We are now facing budget cuts, threats of budget cuts in basic issues: health, education. So, we cannot ignore the omission of the former government.”

Calls for betting CPI to be extended

Last week, it was reported the betting CPI would be coming to an end after Senate President Davi Alcolumbre decided the committee had already had enough time to compile a report.

In quotes shared with local news site O Antagonista, Senator Jorge Kajuru explained Alcolumbre had labelled the CPI a “circus”, frustrated by its lack of progress.

With the CPI set to end on 14 June, on Tuesday Senator Izalci Lucas again called for its work to be extended, after two owners of betting platforms failed to appear having been summoned to testify.

One of those, an influencer known as “Jon Vlogs”, told the CPI his absence was due to being out of the country, with Thronicke retorting: “We know very well how rich these people are. They may come from abroad, because there are flights every day to Brazil. In my opinion, it is ill will, an excuse.”

Izalci Lucas feels it is imperative the CPI is extended so those summoned are heard, saying: “I hope there is common sense here and that we can approve the request to postpone this CPI, because we still need to hear from some people in order to conclude the report.

“If the objective, in fact, is to investigate and improve the legislation, we will need a little more time.”

The CPI ‘circus‘

The CPI, established in November last year, came under fire in December when Brazilian magazine Veja made allegations of extortion within the committee.

The criticism has intensified further in recent weeks, after Senator Cleitinho Azevedo requested a picture with influencer Virgínia Fonseca while she gave testimony to the CPI, centring on her promotion of betting sites on social media.

Thronicke hit out at Fonseca in the aftermath, criticising her attitude and stating she does not believe the answers she gave during her testimony.

Additionally, Thronicke has called for Senator Ciro Nogueira to be replaced as an alternate member of the betting CPI. That came after reports that he had travelled on the private jet of a betting businessman who previously appeared in front of the commission, which Thronicke contended was a conflict of interest.

Ad proposals set to be voted upon

The Brazilian Sports Committee was prepared to vote Wednesday on proposals to further restrict advertising.

The passing of one of the bills would mean advertising during the broadcast of live sporting events would only be allowed five minutes before and five minutes after the broadcast of matches.

Sports clubs fear such restrictions could slash the revenue they’re able to generate from betting advertising.

Last week, Senator Eduardo Girão reiterated his desire to see betting completely banned, believing the football sector’s dependence on gambling sponsorships is proving harmful to the sport.

Last November, the CPI on betting was established with the objective of investigating the “growing influence of online virtual gambling games on [Brazilian families’ financial spending]”.

The CPI has since probed some of the key issues of the gambling sector in Brazil, including illegal betting, influencer advertising and retrospective grey market taxes prior to the legal offering launching on 1 January.

The CPI was initially set to end on 30 April, although the deadline was extended to 14 June.

That deadline isn’t expected to be extended further, however, with Senator Jorge Kajuru revealing Alcolumbre is frustrated with the lack of progress made by the CPI.

In quotes shared by local news site O Antagonista, Kajuru said: “President Davi slammed his hand on the table.

“That was the only time he got angry and said ‘I do not accept the extension, that’s it, it’s over and I will claim that you did not work, that you did not hold more sessions and did not call the people you should have called and you want to continue with this situation, which is sometimes even a circus.’”

Has the betting CPI been a success?

The betting CPI has covered a number of the key issues, and its report at the conclusion of its work could yet play a key role in quelling some of the concerns surrounding the gambling sector.

But the CPI also hasn’t been without its controversy, with Brazilian magazine Veja making allegations of extortion within the committee in December. This prompted the CPI’s rapporteur Senator Soraya Thronicke to lash out at the “gossip”, which she believed was an attempt to distract from the CPI’s work.

Senator Cleitinho Azevedo also caused a stir last week, when he asked for a photo with influencer Virgínia Fonseca while she gave testimony to the CPI about promoting betting sites on social media.

Thronicke subsequently criticised Cleitinho for his actions, while claiming she didn’t believe the answers Fonseca gave in her CPI appearance, also hitting out at the influencer’s attitude.

The interlocutory decision comes after a lawsuit was filed against Betnacional and its owner by the Education and Citizenship of Afrodescendants and the Needy (Educafro) and the Father Ezequiel Ramin Centre for the Defence of Human Rights.

The lawsuit called for the suspension of activities from NSX Group and its Betnacional, Mr Jack Bet and Pagbet brands, as well as collective moral damages of BRL500 million ($88.3 million).

The action alleged the group, which was acquired by Flutter last week, had failed to sufficiently protect children and adolescents from betting.

The Public Prosecutor’s Office initially granted the injunction to suspend the sites’ operations, until proof was given of the effective adoption of technological mechanisms to ensure children can’t access the platforms.

However, the Court of Justice of the Federal District and Territories has decided not to grant the preliminary injunction to suspend NSX Group’s activities, ruling the company had only received authorisation to operate in the newly regulated online Brazil market after satisfying the licence requirements, such as the utilisation of facial recognition technology.

“Considering that it was proven in the records that the defendant obtained the authorisation to operate for a period of five years, it is concluded that the security mechanism indicated by the plaintiffs themselves and required by the Ministry of Finance was duly implemented,” the decision read.

“Therefore, I understand that there is no just cause for granting the preliminary injunction filed.”

Lack of concrete evidence against Betnacional

Udo Seckelmann, Head of Gambling & Crypto at Brazilian law firm Bichara e Motta Advogados, explains the judge decided not to suspend NSX Group’s operations after the case failed to meet the required level of proof, especially with Betnacional licensed and regulated by the Secretariat of Prizes and Bets (SPA).

“The judge ruled that there was no concrete evidence that Betnacional had actively targeted minors or breached current regulations regarding child and adolescent protection,” Seckelmann tells iGB.

“The decision emphasised that punitive measures such as suspending operations require clear and demonstrable violations, which were not substantiated in this case.”

Seckelmann believes the ruling against suspension of Betnacional will prove “highly significant” for the Brazilian gambling industry, highlighting the importance of licensing for operators, as well as maintaining compliance.

“It suggests that courts are likely to uphold the legality of operations for companies that are properly licensed and adhere to the current rules, particularly those concerning the protection of minors,” Seckelmann continues.

“At the same time, it sends a strong message that the judiciary is attentive to the need for evidence-based claims when it comes to allegations of non-compliance, reinforcing a balanced approach between regulation and market stability.”

NSX Group not entirely out of the woods

As this is just an interlocutory decision, the case will remain ongoing, with the ruling calling for the plaintiffs to provide further information, including factual evidence of the ineffectiveness of NSX Group’s biometric technology.

If additional information is provided, the record will once again be forwarded to the Public Prosecutor’s Office.

Seckelmann says new, stronger evidence could yet turn the tide in the plaintiffs’ favour.

“Additionally, changes in the regulatory environment – such as stricter enforcement guidelines or legislative updates – could influence future judicial interpretations.”  

“For now, however, the company remains authorised to operate, pending further developments in the judicial process.”

NSX Group acquired by Flutter

Last week, it was announced NSX Group CEO João Studart would lead Flutter Brazil after the international giant closed its acquisition of the Betnacional parent company.

The deal, valued at $356 million, will comprise NSX’s brands, as well as Flutter’s existing Betfair Brazil business.

On LinkedIn, Studart shared his excitement over the future of the new Flutter Brazil business, saying: “Today, we begin a new stage in our journey.

“It is the recognition of a work that began as a Brazilian startup and that, with strategic vision, talent and consistency, has consolidated itself as a reference in the betting and digital entertainment sector, with leading brands such as Betnacional.”

However, shares were trading down 2.55% at 343.50 pence per share in London on Wednesday morning following the company’s trading update, which it released ahead of its annual general meeting later in the day. Playtech only publishes in-depth data on financial performance for its half-year and full-year results.

Brazil regulation and Colombia VAT hit Playtech

Perhaps most notable in the update was Playtech’s challenges in Latin America. In particular, it highlighted Brazil’s transition to a regulated market and Colombia introducing a temporary VAT charge, which has led to a 30% decline in the Colombian market’s online GGR since its implemention in February. Playtech remains positive about opportunities in these markets, however.

In the US, Playtech reported revenue growth across its live, casino and platform segments. Launches with major operators in 2024, including Bet365, Rush Street Interactive and Hard Rock Digital, aided growth. Playtech highlighted particularly high demand for live dealer solutions in the US.

Peace at last for Caliplay JV

Aside from this, Playtech referenced ongoing growth from the Caliplay joint venture with Caliente. A revised strategic agreement came into effect on 31 March, with Playtech now receiving dividends as a 30.8% equity holder.

However, Playtech is no longer entitled to receive the additional B2B services fees. This was the main sticking point in the dispute with Caliente, but the new agreement, struck in September last year, marked the end of the saga.

There were uncertainties over Caliplay holding an option to redeem additional services fees from the existing strategic agreement. Playtech said this option had expired, whereas Caliplay believed it was still valid. 

Initially, Playtech said it was owed €34.4m in unpaid services and licensing fees for the six months to 30 June 2022. This amount continued to increase while the dispute remained ongoing.

However, Caliplay agreed to resume paying software and services fees to Playtech, although these are no longer present in the new deal.

New-look Playtech moves forward after Snaitech sale

During the four-month period, Playtech pivoted back to a purely B2B business after completing the sale of Snaitech to Flutter Entertainment. The deal closed on 30 April, with Playtech to receive a total of €2.30 billion ($2.60 billion) in return. Proceeds from the sale will largely be distributed to shareholders, with Playtech pledging €5.73 per share.

The deal positions Playtech as almost entirely B2B-focused. Upon completing the sale, the group said there is “significant further upside” to switching to a simplified business model and pursuing B2B growth opportunities.

CEO Mor Weizer said the sale, coupled with progress during the early months of 2025, positions the business for further growth.

“Our core B2B business has delivered a solid performance in the first four months of the year, with a standout performance in the US,” Weizer said.

“Given the strategic and operational progress being made across the business, we remain confident in Playtech’s ability to execute on the exciting growth opportunities over the medium term.” 

Happybet is last B2C asset at Playtech

Playtech also took the opportunity to issue an update on the sale of the remaining Happybet business. Reports towards the end of 2024 said Playtech was preparing to sell the business, which was split out of Snaitech ahead of the Flutter sale.

Founded in 2017, HappyBet operates an online offering and betting shops across Germany and Austria.

In the update, Playtech said it continued to make progress on the sale and will provide an update in due course.

It is expected that the measure will face legal assessment, with the SPA publishing an ordinance to formally introduce the prohibition.

However Luiz Felipe Maia, founding partner of Brazilian law firm Maia Yoshiyasu Advogados, warns the ban could infringe upon the rights of Brazilians.

Felipe Maia tells iGB: “At the end of the day it becomes a civil rights issue, because what we’re saying is ‘Okay, if I am in a situation where I need welfare, I cannot decide where I’m going to spend my money, so I have limited freedom’.

“Either you give them stamps and say, ‘Okay, these stamps are for food and you can only use those for food’, or you’re giving them money and you’re allowing them to decide what they’re going to do with that money.”

Why is betting different from alcohol and cigarettes?

Betting was included in tax reform proposals earlier this year in Brazil, with the sector expecting to face a consumption tax, described by some as a “sin tax”, in the future.

While those proposals were scrapped for now at least, Felipe Maia believes the ban on betting with Bolsa Família risks harming the perception of gambling, especially when the same measures aren’t placed upon similarly addictive activities such as smoking cigarettes and drinking alcohol.

“I think this welfare issue for me, I’ve never seen anyone arguing against someone that received welfare benefits buying beer or cigarettes,” Felipe Maia added. “So what’s the difference?

“I understand that’s not the intention of those benefits, and I think it’s wrong that they are spending this with gaming, but I think it’s wrong that they are spending this on beer, or on cigarettes, and if you take into account that gaming is entertainment, maybe you shouldn’t be spending this on movies or Netflix as well.”

Bolsa Família ban could drive the illegal market

In September last year, the Central Bank of Brazil revealed around a fifth of the funds it issued through Bolsa Família had been used for online gambling.

Ed Birkin, managing director of H2 Gambling Capital, believes that while the ban on betting with Bolsa Família is well intentioned, it also risks driving players towards the black market where there are fewer player protections.

“There may be some who say, frankly, you should spend money on what you want,” Birkin said. “But if you’ve been given benefits for a certain reason, then that’s it.

“But this idea that they can stop them betting; unless they’re able to really go down to restricting almost what they can spend it on [and say] you cannot spend it with a legal betting operator, they’re just spending with the illegal ones.”

Girão blamed betting in Brazil, which launched its regulated online sector on 1 January, for increases in addiction and family debt.

With the vote to legalise land-based betting rumoured to be on the horizon, Girão has called for the entire sector to be banned, having authored a bill towards the end of 2024 that aimed to repeal the betting laws.

The bill in question is still waiting for a rapporteur to be appointed.

“We need to stop this humanitarian tragedy that is betting,” Girão said. “Only a few win: tycoons. And those who lose are millions. For me, it has to end. I have a bill to end it, to ban sports betting again.

“The damage has already been done, the signs are there. And there are still people with zero responsibility towards the Brazilian population, with zero social commitment, who are thinking of putting casinos and bingo halls to a vote in this House in the coming weeks.”

Girão has long been an opponent of gambling in Brazil, but he failed in his bid earlier this year to become the Senate president, losing out to betting advocate Davi Alcolumbre.

Influence of betting on Brazilian football

Alongside his bill to ban sports betting, Girão is also the author of PL 3,405/2023, which would prohibit use of celebrities in advertising to bet on sporting events.

That bill, alongside PL 2,985/2023, which would restrict the times during which betting ads can be broadcast, are set to be voted on this Wednesday.

If the bills are approved by the Sports Commission on Wednesday, they will be forwarded for analysis by the Communication and Digital Law Commission, which will have the final decision on whether to pass them as laws.

Girão claims the football industry’s dependence on betting sponsorships is harmful to the sport. He has called for a Parliamentary Inquiry Commission (CPI) to be set up to investigate wrongdoing by the Brazilian Football Federation (CBF).

Senator Soraya Thronicke, head of the CPI on betting, previously said the group was “having enormous difficulty – enormous – in investigating large betting companies that sponsor games in Brazil; the CBF, for example.”

Flutter agreed to acquire an initial 56% stake in Brazil-facing NSX last September. The deal was valued at $356 million and had been expected to close in Q2 of this year.

The acquisition has completed on schedule, enabling Flutter to establish a new Flutter Brazil business, led by Studart. This division will also include its Betfair Brazil brand. A mechanism is also in place to enable Flutter to increase its overall shareholding of NSX.

Studart responded to the announcement on LinkedIn, explaining that he will now lead the combined Flutter Brazil business. He said the acquisition represents “much more than a name change” for NSX.

“Today, we begin a new stage in our journey,” Studart said. “It is the recognition of a work that began as a Brazilian startup and that, with strategic vision, talent and consistency, has consolidated itself as a reference in the betting and digital entertainment sector, with leading brands such as Betnacional.”

Flutter Brazil committed to relevant and responsible gambling

Studart, who has acted as CEO for the NSX business since 2020, said the combined business will have greater reach in Brazil. He said, being part of Flutter, NSX is connected to one of the largest global platforms in the industry.

“It expands access to technology, talent and capital, reinforcing our capacity for innovation, impact and scale,” he said. “Alongside Betfair, we are now operating in an even more integrated manner in Brazil, with a very clear purpose: to offer increasingly relevant, safe and responsible experiences for our users.

“We continue with the same DNA that has brought us this far and with even more strength to build what lies ahead. The future of Flutter Brazil has already begun and it will be guided by purpose, responsibility and commitment to what really matters.”

NSX to contribute $220 million in additional revenue

Confirming the acquisition, Flutter said NSX would help drive market share growth and embed future profitability. It has forecast that the deal will generate an additional $220 million in revenue during 2025.

“The transaction demonstrates Flutter’s powerful optionality as an ‘and’ business and aligns perfectly with our strategy for value creating M&A,” Flutter CEO Peter Jackson said in a statement released on Thursday.

“The combination of NSX’s extensive local expertise, alongside our existing Brazilian business and the advantages of the Flutter Edge, creates a compelling opportunity to capitalise on the exciting runway of future growth in Brazil.”

These comments echoed what Jackson said during Flutter’s post-Q1 earnings call. He said it gives Flutter an “enhanced competitive position, in a fast-growing newly regulated market”.

“Combining a strong local management team, localised proprietary technology and a local hero brand in Betnacional, alongside our existing Betfair Brazil business and Flutter Edge capabilities, will position us for success in this very exciting market,” Jackson told analysts earlier in the month.

“Our iGaming strategy in Brazil is to offer a fully integrated 360-degree solution that drives growth across the entire player life cycle. Through ads, we deliver personalised real-time advertising across multiple channels to acquire bettors quickly and cost efficiently,” Koerl said.

Spotradar iGaming natural business fit

Sportradar said that iGaming was a “natural extension” of its business, which largely focuses on integrated betting, trading and sports data services.

“Our existing sportsbook clients already rely on our marketing services to drive customer acquisition. We are leveraging these relationships and experienced a strong test in the market of Brazil under way for iGaming,” Koerl said.

While Koerl noted that it was early days, the group was increasing its portfolio in the market and was receiving feedback from its actions.

“We learn as we speak here. And as you understand, our model here is that we are uniting the acquisition, the retention, the sports betting service and the iGaming in a 360-degree solution.”

“Once we have learned enough, you will see that we scale this in other markets,” Koerl stated.

Sportradar said it globally has 84 iGaming brands using its marketing services to acquire and retain customers and it believes it is “well positioned” to scale that initiative.

Elsewhere in the Brazilian market, Sportradar noted it has signed a multi-year partnership with the Brazilian Volleyball Confederation to safeguard competitions from match-fixing, using the group’s universal fraud detection system. It will also supply metrics and dynamic visualisations for team coaching.

Sportradar first quarter results

Sportradar reported in its first quarter results year-on-year revenue growth of 17% to €311 million ($345 million).

The group’s profit in the quarter was €24 million, up 7.8% year-on-year, with an adjusted EBITDA increase of 25% to €59 million.

Sportradar said it had achieved a customer net retention rate of 122% in the first quarter.

It also noted that it had expanded its partnership with Major League Baseball through 2032. This deal allows the company to continue to distribute ultra-low latency official MLB data, media content and audiovisual content to its client base.

“During the quarter we also further bolstered our leading content portfolio with the extension and expansion of our partnership with Major League Baseball and we signed an agreement to acquire IMG Arena’s sports betting rights portfolio,” Koerl said.

“We are excited by the unique opportunities these valuable properties will provide to our customers and look forward to generating additional value for our shareholders in 2025 and beyond.”

Last month, Sportradar agreed to take over Endeavor Group’s IMG Arena asset, in a deal that saw Endeavor pay Sportradar to offload its own business unit.

IMG Arena’s rights cover 39,000 “official data events” and 30,000 streaming events. Following the closure of the deal, Sportradar will hold betting rights to three of the four Grand Slams.

But Jackson expects its soon-to-close NSX Group acquisition to put Flutter “in an enhanced competitive position, in a fast-growing newly regulated market”, he said during the group’s Q1 earnings call on Wednesday.

“Combining a strong local management team, localised proprietary technology and a local hero brand in Betnacional, alongside our existing Betfair Brazil business and Flutter Edge capabilities, will position us for success in this very exciting market,” Jackson said.

Last September, Flutter announced it had agreed to acquire an initial 56% stake in NSX Group, owner of the Brazil-facing Betnacional brand. The $356 million deal was expected to close in Q2 2025.

Completion of the deal will create a new “Flutter Brazil” business, incorporating the company’s existing Betfair brand, as well as NSX Group’s Pagbet, MrJack.bet and Betpix brands.

Meanwhile, the NSX business reported Brazil revenue had increased 20% year-on-year in Q1, suggesting the business had not been hit with the same compliance bottlenecks as others.

“Clearly, the NSX business, which we hope will be coming in later this month, is performing really well and in line with our expectations. So it’s over 20% up in Q1 on a year-on-year basis despite some of those regulatory kind of friction challenges. So we’re really pleased with what we’re seeing so far in Brazil,” Jackson added.

Flutter previously said the acquisition would give it an 11% market share in Brazil in the long term and position the company as one of the top three in the nascent legal betting market, which launched on 1 January.

KYC friction causes Flutter Brazil Q1 revenue to decrease

Like other operators, Flutter faced difficulties adapting to the new regulatory environment in Brazil, especially in regards to KYC.

New regulations have mandated facial recognition technology for ID verification, with bettors needing to register with a bank account attached to a financial institution authorised by the Central Bank of Brazil.

“We have seen a few challenges with Betfair in Brazil due to the changes in the regulatory environment,” Jackson said. “That’s mainly around some friction in the sign-up process for customers. We’ve seen that impacting on activation.”

But Jackson also said he is “really pleased” with what the company is seeing so far in Brazil. In a letter to Flutter shareholders alongside the Q1 results, he said: “M&A in Brazil remains on track as we augment an impressive portfolio of local hero brands.” 

More broadly, Flutter reported first-quarter group revenue of $3.66 billion, up 8% versus the prior year. Adjusted EBITDA of $616 million and net income of $335 million were also YoY increases of 20% and 289%, respectively.

How did Flutter’s competitors fare in Brazil during Q1?

In terms of Flutter’s competitors in Brazil, Entain reported NGR Q1 growth of 31% in the country, with the operator saying this was ahead of expectations.

Betsson, meanwhile, reported revenue growth of 70.3% across LatAm, although as it only received its full licence for Brazil in March, the company didn’t experience too much of an uptick in the market.

However, CEO Pontus Lindwall again said the company is taking a cautious approach in Brazil, although he does expect the launch to draw on the business’ success elsewhere in the region to power its growth.

“Brazil, it’s a huge market, and we want to start off in a soft way and make sure that the product is calibrated for that market,” Lindwall said. “And then we’re going to start marketing and see what kind of traction we get.”

In March, Brazil’s Solidarity party filed a Claim of Non-Compliance with a Fundamental Precept, calling for municipal lotteries to be suspended over claims they were disrupting the newly regulated federal online betting market.

However, the Supreme Federal Court (STF) Minister Nunes Marques denied that suspension, with municipal lotteries allowed to continue operations until the STF makes a final ruling.

In response, the Leme Consultores study has revealed municipal lotteries could contribute significantly to the Brazilian economy, to the tune of nearly BRL12 billion in federal revenue for the government.

Smaller operators unable to meet federal requirements in Brazil

The study, based on existing data for companies which have obtained licences in the municipality of Bodó in the state of Rio Grande do Norte, found around BRL8 billion could come from smaller companies that can’t meet the high barriers of entry for federal authorisation.

Companies seeking a federal licence must pay a hefty BRL30 million authorisation fee, while also meeting significant technical and certification requirements.

“These barriers to entry – especially for small and medium-sized agents – not only affect competition, but also directly reduce the potential for tax collection,” the study said.

“In particular, the high initial and maintenance costs required by federal legislation may significantly restrict the number of operators able to collect taxes, reducing the effectiveness of the tax system on the sector as a whole.”

Are municipal lotteries legitimate?

The Solidarity party claims municipal lotteries are creating a “truly chaotic scenario” in Brazil, with jurisdictions navigating around federal betting laws to allow companies without nationwide authorisation to operate.

The study disputes that, however, saying municipal lotteries “may represent a legitimate way” of decentralising lottery, encouraging competition.

“Decentralised lottery models, such as those in the United States, Canada and Australia, show that the coexistence of local and national lotteries can bring beneficial results in terms of the distribution of powers and tax collection,” the study explained.

“In Brazil, the excessive centralisation of lottery activity in the Union resulted in a limited supply of products and the concentration of revenues in a few hands, making it difficult for many regions to access the benefits generated by the activity.”

However, Daniel Romanowski, president of the state lottery in Paraná, believes municipal lotteries could pose a problem to smaller companies that can’t gain federal authorisation.

“We have 5,000 cities in Brazil for sure,” Romanowski told iGB. “There are some cities, like my city Curitiba, São Paulo, they have the big structure, but also in the same level we have cities with 3,000 people.

“Checking out the websites, the systems, the games, everything that goes on, to have good suppliers for 3,000 people, I don’t know if they will have the qualities that we want for the market.”

Q1 monthly active users (MAUs) hit 354,000, which is a quarterly record for LatAm as a whole. Rush Street Interactive also posted a record number of MAUs in Colombia despite the February introduction of a 19% VAT on online gambling operators in the country.

On the post-results analyst call, Rush Street Interactive CEO Richard Schwartz explained the company had looked to absorb the impact of the tax through bonusing, rather than passing the cost onto players.

As a result, Rush Street Interactive retained its market share in Colombia while keeping GGR levels near all-time highs, up by 55% in local currency, he said.

However, CFO Kyle Sauers explained other financial metrics such as NGR were falling short of base expectations in Colombia, while average revenue per MAU across LatAm as a whole fell to $36 from $44 in Q1 2024.

“In each of March and April, our net revenue growth was significantly impacted,” Sauers said. “So, in March, our net revenue in US dollars was actually down slightly year-over-year. And in April, it’s been about flat year-over-year.

“So, we’ve got a market that may have otherwise been growing at 50%, plus that’s now relatively flat year-over-year because of this temporary VAT tax.”

Could the tax be repealed?

The Colombian government implemented the VAT in February by temporarily eliminating the exemption on online gambling operators, claiming it needed the additional contributions to cover the expenses of responding to ongoing civil unrest in the Catatumbo region.

The tax is currently only set to last until the end of December, although there is uncertainty among the industry over whether it will in fact be made permanent.

Local lawyer Juan Camilo Carrasco, a partner at Bogota law firm Asensi Advogados, previously told iGB: “We know that regarding taxes, nothing is more permanent than something that comes in temporarily.”

However, Schwartz explained the tax is under review by the Colombian courts to establish whether it is constitutional, with a final ruling expected by late May or June.

There’s underlying optimism from Rush Street Interactive the tax could yet be repealed. “Given how strong the volumes have been in Colombia, should the temporary tax go away prior to year-end, we could see meaningful upside to both revenue and EBITDA,” Sauers pointed out.

“The removal of the VAT tax should be a very meaningful driver of growth for us when that happens and when we have those as comparables with when the tax was in place.”

Excitement for Mexico and Peru

Colombia aside, Rush Street Interactive remains confident on its exploits elsewhere in the LatAm region, with the company also live in Mexico and Peru.

In Mexico, Rush Street Interactive noted year-on-year growth in Q1 was close to 50% as the company begins its third full year in the market.

“In terms of Mexico, we’re really seeing a lot of great growth out of that market,” Schwartz said. “It’s continued to be one that really excites us and things are moving in a really great direction for us there.

“And as we noted before, we expect over time it will be one of the largest markets in LatAm, larger than Colombia, ultimately. So, we feel really optimistic about Mexico.”

The business is taking a slower approach in Peru, where it launched its RushBet brand in July 2024 as part of its “strategic advancement” into the LatAm region.

“Peru has been a story where we haven’t invested much in marketing yet, because we’re continuing to optimise the experience and localise it,” Schwartz continued.

“It’s something that we continue to feel positive about, but it has been a market that we haven’t ramped up yet. It’s still something that we’re excited to be able to do in the future given the relatively large population that country has.”

LatAm expansion opportunities for Rush Street Interactive

In the company’s results presentation, it highlighted potential expansion markets in LatAm, including Chile, Argentina and Ecuador, as well as the newly regulated Brazil.

By the end of 2028, Rush Street Interactive could have a total addressable market of $15.9 billion in LatAm.

“There are other LatAm markets as well that we’ve been focused on and have been evaluating ways to enter those markets,” Schwartz added. “We haven’t announced anything and so I won’t be able to share anything with you today.

“But certainly, as you can imagine, once you have a great brand, a great platform, a great team, great marketing team, operations, local knowledge of experiences in those regions, it becomes a lot easier for us to be able to add and be successful in future markets.”

Rush Street Interactive EBITDA nearly doubles in Q1

Alongside growth in revenue and net income, Rush Street Interactive also reported year-on-year adjusted EBITDA growth of 95% to $33.2 million in Q1.

This was despite adjusted sales and marketing expenses edging up by 3% to $38.8 million.

MAUs in the US and Canada also increased by 17% to 203,000, while average revenue per MAU in North America was significantly higher than in LatAm at $368 compared to $36.

Rush Street Interactive reiterated its FY2025 guidance, expecting revenue to be between $1.01 billion and $1.08 billion and adjusted EBITDA to reach $115 million-$135 million.

“These strong results are driven by our commitment to innovation and enhancing the quality of our player experience, alongside efficient acquisition and retention of high-value players,” Schwartz said.

The LatAm region accounted for 25% of Betsson’s total Q1 revenue, boosted by higher casino activity and stronger sportsbook margins.

Betsson received a full licence for the newly regulated Brazilian market in February a month after the legal betting market launched.

However, it launched its betting offering in April and, on the Q1 post-results analyst call, Lindwall said the company had also conducted a technical launch in Paraguay in February, after obtaining a local online casino licence at the end of 2024.

Betsson now has operations with local gaming licences in 25 countries across the globe.

Launches such as Brazil, Lindwall believes, will aid Betsson in continuing its strong work in the LatAm region, where it has already achieved success in Argentina, Colombia and Peru.

However he reiterated previous comments on the operator taking it slow in Brazil, as it continues to focus on Spanish-speaking LatAm regions in the short-term.

“Brazil, it’s a huge market, and we want to start off in a soft way and make sure that the product is calibrated for that market,” Lindwall told analysts. “And then we’re going to start marketing and see what kind of traction we get.

“And given that we have really good traction in other markets in the region, we believe that we will be successful over time. Obviously, they give us a good possibility for the future to keep on growing in the LatAm region.”

Strong performance for Betsson in LatAm

Martin Öhman, Betsson CFO, said the launches in Brazil and Paraguay had come too late to have any real effect on the Q1 results.

However, Öhman went into further detail on how other LatAm markets are performing, with revenue in the region up by €31 million.

For instance, he said Argentina continued to show strong underlying activity in deposits, increased turnover and all-time high revenue in Q1.

Additionally, Betsson posted revenue growth in Peru compared to the same period last year, driven by sportsbook and casino growth.

Öhman also revealed the new 19% value-added tax on online gambling in Colombia, introduced in February, hadn’t yet had much of an impact on revenue in the market.

“Colombia is a fairly small market,” Öhman stated. “But yes, of course, all tax increases and everything, all regulatory changes impact business.

“However, it does not have a very significant impact on our total numbers.”

The companies were suspended after the SPA deemed they were in breach of Article 3 of Normative Ordinance No 2,104, which relates to the presentation of technical certifications.

The regulator had accused these operators of not filing the necessary certifications that enabled them to operate in the legal betting market.

At the time Pixbet said it was surprised by the decision, and very shortly after the licence was revoked, a subsequent federal court decision reinstated it.

Federal court judge Anderson Santos da Silva overturned the effects of the ordinance on the evening of 11 April, following a “writ of mandamus” filed by the company.

The company claimed to have submitted three of the four necessary certification documents in February, while the remaining document, the integration certificate, was submitted the day prior.

Kujawski, partner at Brazilian firm Mattos Filho, says he believes the SPA’s decision was too harsh. He fears it could show a “certain lack of dialogue and understanding” from the SPA, with overworked certification entities. Today there are only six recognised gambling certifiers in Brazil.

“In our view, the suspension of the authorisation was a disproportionate response to the infraction committed,” Kujawski tells iGB. “A suspension of authorisation should only occur in extremely serious cases of repeated violations of Brazilian law.

“Before suspension, other sanctions should be applied, such as warnings or even fines. Suspension of authorisation should only be a last resort.”

SPA flexes muscles for the first time

This suspension of four licences marked the first time the SPA has placed serious sanctions on operators, to the extent of the punitive measures available to the regulator laid out in Normative Ordinance No 1,233, published in July.

As per the ordinance on regulatory enforcement, the SPA has the power to terminate licences for the most serious cases of failing to adhere to the regulations.

The SPA can also issue fines of between 0.1% and 20% of proceeds over the year prior to the sanctioning proceedings beginning, although the penalty can never exceed BRL2 billion ($353,678).

Kujawski says the SPA needs to “assert its authority” on the market to avoid other consumer protection agencies feeling they need to fill a vacuum of power.

However, he also warns the regulator cannot go too far the other way, although he has faith the SPA will ultimately calibrate its sanctions to be more reasonable than the case of Pixbet.

“This cannot translate into an agency that applies sanctions in a disproportionate manner or adopts an inquisitorial stance against the sector it regulates,” Kujawski continues.

“A balance must be struck between an active agency and a belligerent one. I am convinced that the SPA will find this right path.”

Suspension causes reputational damage to Pixbet

Pixbet said its initial licence suspension was both “illegal and disproportionate”, claiming it caused the operator “reputational and economic damages”, in relation to its BRL470 million master-sponsorship of Brazilian top-flight football club Flamengo.

Kujawski agrees the incident caused damage to Pixbet’s reputation, both within the market and with its business partners.

“I understand that the damage here was controlled,” Kujawski adds. “But it could have been worse.

“That is why I reiterate my opinion that the lack of a mere technical certificate should not lead to the suspension of an operating licence.”

Notably, 7MBR Ltda also had its licence reinstated shortly after it was revoked, although Caixa Lotteries and Tqj-Par Participacoes Societarias remain suspended.

However, both of these operators have said they are planning to launch their licensed betting offerings later in 2025, and therefore had not yet secured all their documentation.

When asked why companies would go to the trouble of gaining authorisation when they aren’t yet planning to go live with their product, Kujawski says the reason is the slow authorisation process.

“One of the most complicated [phases of authorisation] has been the technical certificates for platforms and games, due to the workload of the certifying entities,” Kujawski says.

“There are several operators who have obtained the licence and are still organising their systems and games to begin operating.”

Speaking live from Sao Paulo, Ed and Robin discuss the first few months of legal gambling in Brazil and how the competitive landscape is shaping up. 

Listen to Right to the Source on Apple Podcasts

She said Entain had started the year well, but she wants to ensure it continues “in the right direction”.  

Group NGR excluding the US BetMGM JV increased 6%, or 10% in constant currency. The update did not break down any of the specific revenue figures. 

Overall revenue was bolstered by UK and Ireland online NGR increasing 22%. This, Entain said, was due to strong volume growth in the market, which it expects will be ahead of the market average for the period.  

Are adult gaming centres enticing retail gaming customers away from betting shops? 

Group online NGR was up 10%, while retail NGR recorded a 2% uptick. Although retail was bolstered by an increased sports margin, revenue was partially offset by lighter UK gaming volumes. 

UK&I retail NGR dipped slightly by 1% due to “lighter volume”. Speaking to analysts, CFO Rob Wood said he expected the “softer results” in retail were due to changes to consumer behaviours.  

He said in terms of gaming, double-digit online gaming growth across the UK suggested players were largely shifting to online. He also said he suspected adult gaming centres (AGCs), in arcades and amusements, were taking gaming market share.  

“AGCs have flown under the radar and don’t have the same approach to monitoring players,” he told analysts. 

Overall Wood said he was “largely happy” with how the retail business was trading. 

Entain Q1: Brazil and CEE record double-digit growth

Looking beyond the UK, Brazil NGR jumped 31% during Q1, which marked the first full quarter of Brazil’s legal online betting market.  

The operator said this was ahead of expectations and Wood noted there was no official market performance data from the regulator, which made it difficult to compare Entain’s position to its competitors.  

“The environment doesn’t feel like wholesale change versus where we were pre-regulation,” he noted.  

The CEE region also performed well with NGR up 10%. Entain noted Croatia had performed particularly well.  

International revenue remained flat but increased 5% in constant currency. Australian NGR dropped 8% (in constant currency), reflecting customer-friendly sports results.

Sports margin increases, partly driven by Poland

Both Wood and David highlighted an increase in sports margin, which Wood said had risen to 14.9% in Q1.  

“Over the course of a few years you do see a positive trend upwards, there are clearly structural growth drivers,” Wood said 

“One is player mix as we’ve become more recreational. Poland is all sports, it’s a material part of our sports mix and it trends in the 20s.”  

Also on sports, one analyst asked whether Entain would be utilising any of the tech being developed by its Angstrom business for BetMGM.  

Wood said over this year, the focus for Angstrom would be entirely on the US. But he said he could see Angstrom’s role evolving over time. 

BetMGM yesterday reported its net revenue increased 34% in Q1 to $443 million. This translated to adjusted EBITDA of $22 million, an improvement of more than $150 million from a loss in the first quarter of 2024. 

Revenue in the three months to 31 March hit €293.7 million (£249.4 million/$334.7 million). This comfortably surpasses the €248.2 million Betsson reported in Q1 last year but falls 4.3% short of Q4.

The company achieved particular success in Latin America and the company is eyeing further growth in the region driven by its exploits in the newly regulated Brazil market.

In LatAm, revenue jumped 70.3% to €74.5 million, a record-high for the region, on the back of deposits reaching an all-time high. Betsson highlighted growth across Argentina and Peru, with year-on-year increases for both casino and sportsbook revenue.

In his Q1 notes, Lindwall also referenced Betsson recently securing a full licence in Brazil. The group was awarded a full licence to offer online and sports betting in the country in March.

Betsson moved into Brazil in 2019 when it acquired a 75% stake in local sportsbook operator Suaposta. However, the full licence will expand its options in the country.

“Betsson’s ambition is to create long-term stable profit growth through geographical diversification and growth initiatives in existing and new markets,” Lindwall said. “Latin America, in particular, continues to be an important growth region where we are continuously strengthening our positions.”

Betsson optimistic despite uncertain global economic outlook

Data from Betsson shows growth across both the core casino and sportsbook businesses during Q1, with total customer deposits rising 15.2% to a record €1.59 billion. Active players increased 7%, but registered customers dipped 0.7% following the exit from certain markets.

This largely positive data, CEO and President Pontus Lindwall said, reflected the group’s overall position. He said despite “uncertainty” about the wider economy, gambling remains largely unaffected, with Betsson likely to see continuously higher demand for online gaming.

“The world around us is currently characterised by great uncertainty and concerns about reduced world trade, higher inflation and a weakening economy,” Lindwall said.

“We are closely monitoring macroeconomic developments, but at the same time we note that demand for gaming products has historically been relatively unaffected by the general economic cycle.

“Betsson operates in an attractive sector with structural growth driven by the continued online migration of gaming. The share of online gaming in the world will continue to increase for many years to come. We have a clear vision to deliver the best customer experience in the industry.”

Double-digit casino and sportsbook growth for Betsson

Looking at segment performance, casino was again the primary source of revenue for Betsson.

Casino revenue in Q1 topped €212.3 million, an increase of 17.6% and 72% of all revenue for the quarter. Some 470 new games were added to the Betsson portfolio during Q1.

As for sportsbook, revenue climbed 21.6% year-on-year to €79.7 million, or 27% of total Q1 revenue. Sportsbook margin for the quarter also increased from 6.6% to 8%.

The remaining €1.6 million in revenue came from other products including poker and bingo. This falls 27.3% short of last year.

Regional performance for Betsson

LatAm aside, Central and Eastern Europe generated €122.3 million of all revenue, up 11%. Betsson put this down to record-high deposits in Croatia and Greece, but reported declines across Lithuania, Estonia and Georgia.

Elsewhere on the continent, Western Europe revenue climbed 28.1% to €55.6 million, helped by record revenue in Italy. Revenue was also higher year-on-year in both France and Belgium.

Nordics revenue, however, was down 19.3% to €37.8 million, primarily due to lower casino activity. Betsson said this was the case in Sweden and Denmark, with sportsbook activity also lower in both countries.

An additional €3.4 million in revenue came from rest of world operations, down 14.8% year-on-year.

Net profit rises to €48.4 million

Turning towards the bottom line, gross profit after cost of services climbed 14.6% to €187.9 million. Operating costs were 16.9% higher but such was the impact of revenue growth that EBITDA was 8.5% higher at €77.7 million and operating profit up 9.5% to €57.9 million.

After finance costs, pre-tax profit was €61.8 million, up 13.4% year-on-year. Betsson paid €48.4 million in tax, leaving a net profit of €48.4 million, an increase of 13.1%.

“With a scalable, global business model and proprietary products and technology, we are well positioned for continued profitable growth going forward,” Lindwall said.

However, Romanowski says Lottopar, alongside other state lotteries in Brazil, may challenge those laws in the Federal Court. He believes states have the right to collaborate to grow their betting offerings.

“The federal [government] cannot say what the states can do,” Romanowski tells iGB. “Basically they regulate the federal, we regulate the states.

“We have our own houses of law here, so I believe we can associate in the near future, in like two or three years.”

Precedent for state cooperation in Brazil

Romanowski highlights previous examples of Paraná and nearby states collaborating on projects, pointing to the Southern Regional Development Bank (BRDE), which was founded in 1961 by the states of Paraná, Rio Grande do Sul and Santa Catarina.

Romanowski says the BRDE is evidence of jurisdictions collaborating to enhance their competitiveness, especially against powerhouse states such as Rio de Janeiro and São Paulo.

“Parana could make just his bank for his people,” Romanowski continues. “But he united with other states and made up a bigger bank with more power, with more money to lend for the people, for our population.

“And I believe the lotteries are the same and we can associate ourselves.”

Huge advantages for smaller states

The nature of lotteries is the bigger the prize on offer, the more inclined people are to participate.

For smaller states, this could prove especially advantageous as their draws are typically smaller and they have access to less players.

Romanowski suggests a “South of Brazil Lottery” as a means of competing against much bigger states, such as São Paulo, which boast populations far exceeding theirs.

“We have 11 million people, almost 12 million people in our state,” Romanowski explains. “But there are states that have like 700,000 people and they can associate with other states that size to [create] a better lottery, to make something that the population of their states is going to play with.

“We know that with the lottery, it’s more [about] imagining how your life is going to change if you win that prize. If there are smaller prizes, you’re not going to have that.”

Can Brazil replicate other global lotteries?

Romanowski cites the cases of EuroMillions in Europe and Mega Millions in the US as hugely successful cross-jurisdiction lotteries.

For him, a “BrazilianMillions” offering would prove hugely beneficial with three or four states combining to lure players in with big prizes.

“We probably can associate with Rio de Janeiro, with São Paulo and make one big lottery,” Romanowski adds. “It’s not a problem.

“EuroMillions, Mega Millions, Powerball, they all were created like that. So now they have the best lotteries. The bigger prizes in the world lottery are from them because they’re united, a lot of states.

“So, I think in the near future we are going to be on that.”

Ongoing conflict between states and federal government

The relationship between state lotteries and the federal government has been complicated of late, best exemplified by the Rio de Janeiro State Lottery’s (Loterj) failed attempts to license brands nationally throughout Brazil.

Loterj claims its state licence should allow authorised brands to offer bets across Brazil without a federal licence.

However, the government seems to have won that battle with the Supreme Federal Court last month voting to uphold a preliminary injunction that banned Loterj-licensed brands from offering bets beyond Rio de Janeiro state borders, while also mandating geolocation tracking to ensure compliance.

PL 2,234/2022, the bill to legalise land-based casinos, bingo, jogo do bicho and betting on horse racing, was approved by the Justice and Citizenship Committee in June last year.

After facing setbacks and being postponed on a number of occasions, there is some confidence the bill will be voted upon by the Senate in the near future. The bill’s rapporteur, Senator Irajá Abreu, said earlier this month he believes the bill has the necessary support to achieve final approval from the Senate.

This new study, which surveyed 5,039 Brazilian men and women aged 16 or over via computer-assisted telephone interviews between 21 February and 1 March, supports Irajá’s belief that land-based legalisation is backed by the Brazil population.

Of those surveyed, 60% said they were in favour of regulating and monitoring land-based gambling. Meanwhile, 34% stated they were against the proposals, while a further 6% said they either didn’t know, or preferred not to answer.

Economic benefits of legalising Brazilian land-based gambling

Much of the reasoning behind political support for land-based gambling relates to the economic benefits the sector could bring to Brazil.

Some have estimated legalisation could provide around BRL20 billion (£2.6 billion/€3.1 billion/$3.5 billion) in annual revenue.

When asked whether legalising land-based gambling would increase tax collection, 58% of those surveyed by DataSenado agreed, while 22% said it wouldn’t make a difference.

Additionally, 44% of those surveyed believe legalising land-based gambling would increase the number of jobs in Brazil, with international giants such as Hard Rock International already making plans for entry.

Alex Pariente, Hard Rock International’s corporate senior vice president of casino and hotel operations, previously told iGB: “We are very keen on presenting an integrated resort as a bigger impact on the economy, because of the magnitude of the investment.

“Building an integrated resort that could be a destination for tourists from the region and internationally could be very useful to pursue the government goal, which is to increase tourism. By the same token, with the job creation related to the sizeable investment of an integrated resort, you’re talking in the billions of dollars.”

DataSenado’s research shows more than a quarter (26%) of the population would participate in land-based gambling should it become legal.

Despite it not being legal, there is a general understanding that land-based gambling is somewhat widespread in Brazil and just 25% of those surveyed believe the current ban is very effective in reducing the activity.

Formalising the activity

As with the licensed online alternative, which launched on 1 January this year, legal land-based gambling would likely formalise the activity and help reduce harmful consequences such as addiction and betting-related crime, which is driven largely by illegal activity.

Of those surveyed, 65% said the creation of rules to prevent gambling-linked crimes such as money laundering was very important, with 17% describing it as just important.

It’s worth noting the federal police in Brazil are reportedly against land-based regulation, with CNN Brazil highlighting the force’s concerns over a potential rise in money laundering.

When asked whether the bill’s provision that land-based machines in casinos would be supervised to ensure they are honest and clearly state the rules, 62% of respondents said this was a positive aspect of the proposals.

Additionally, 54% believe establishing a national confidential registry of people with gambling addictions to restrict their play would be a positive move. Meanwhile 52% agreed rules to prevent people from getting into debt from gambling were very important.

This sought to uncover malicious activity from online influencers in regards to illegal betting.

The police chief told the panel that illegal betting sites are using online influencers to drive bets made via the online payment service Pix. Players are able to use channels operated by the influencers to place bets on the black market.

As influencers are not considered financial institutions, it is impossible for the gambling regulator and other federal entities to freeze their assets and block the transactions.

“After people complained about losses after having played, we realised that these fintechs, the payment intermediaries, are these payment methods that are created clandestinely, through people who have no connection with the legal entity created,” Lucimério told the CPI.

The investigation identified BRL15 million (£2 million/€2.3 million/$2.6 million) had been wagered via illegal bets in Alagoas since the start of Brazil’s legal betting sector on 1 January.

How are influencers advertising illegal gambling?

Lucimério told the CPI that influencers had been hired by illegal betting companies and were then using false accounts to mislead gamblers into thinking they had won significant sums of money from betting with black market sites.

But in reality influencers are instead profiting from the actual bettors that are playing with the brands they are marketing.

“In order to play, the gambler needs to download an app,” Lucimério said. “That app is provided the famous demo account for influencers.

“The [influencer] would post the link for people to click and bet, but they also received another [fake] link where they could log in and record the screen showing how they made the big win. It was all a scam.”

More powers needed to combat influencers

Lucimério believes further legislation is needed to prevent such activities, which exploit bettors by promising prizes that aren’t possible to win.

Last month, federal deputy Kim Kataguiri introduced a bill which aims to criminalise the advertisement of black market betting, with a maximum penalty of eight years in prison for marketing that targets children and vulnerable people.

“If there is no proper regulation of this type of activity, we are talking about predatory activity here, which poses a very significant risk to the health of Brazilians,” Lucimério added.

“It ends up taking money out of the individual’s home, stopping it from circulating the local economy and going straight to the betting shops. If they are clandestine, the money doesn’t even stay in Brazil.”

Lucimério explained how the investigation initially looked into fraudulent activity, but later observed money laundering.

Senator Damares Alves, of the CPI, praised the police force’s work in combatting such crimes, saying: “Congratulations to the police officers who had the courage to face this billion-dollar, disgusting, disgusting market.”

That consultation closed on 27 March with around 200 contributions received and the SPA has now published its updated regulatory agenda in the form of Normative Ordinance No 817.

Article 2 of the ordinance revealed the focal points of the new agenda, which include the promotion of responsible gambling and addiction prevention, as well as the fostering of a balanced, transparent regulatory environment.

At the end of each quarter, as of 30 June, the SPA will release drafts of new regulations and encourage cross-industry participation in the process.

What has the SPA included in its regulatory agenda?

Item one on the SPA’s 2025-26 regulatory agenda is the development and implementation of a national platform for players to self-exclude from gambling activities, to boost the sector’s promotion of responsible gambling and the prevention of addiction. The SPA described this as the “most important” item on the agenda.

The SPA said it expected to publish minutes relating to that initiative in Q2, as well as improvements to the rights model for allocating resources from betting companies to sporting entities, such as athletes and clubs, in relation to sponsorships and advertising deals.

Additionally, the SPA hopes to clarify the parameters for creating a distinctive seal for licensed betting operators to use, so bettors can identify licensed products from unlicensed.

In line with its plans to promote responsible gambling, the regulator will improve its guidelines for supporting vulnerable bettors and their families with the aim of mitigating the consequences of problem gambling.

The third quarter of 2025 will see the SPA modernise its advertising regulations, which have come under fire of late, with multiple bills to further restrict advertising currently going through assessment in the senate.

Within its agenda, the SPA also said it plans to review regulations on Exclusive Instant Lottery. It will additionally look at consolidating the betting ecosystem in Brazil by regulating the economic exchanges between operators and providers, which it believes could combat the pressing issue of the black market.

To round off the first year of the regulated market, in Q4 2025 the SPA will establish a national betting system to bring state laws more in line with federal regulations. To support this, the SPA last month invited state politicians to a meeting at the ministry of finance’s headquarters to discuss ways of better aligning state regulations.

Looking ahead to 2026

The SPA is looking to further enhance its regulatory framework once the first year anniversary of legal gambling in Brazil passes. It said it expects to consolidate and improve its inspection procedures in Q1 2026 to ensure operators are supervised sufficiently.

The licensing process has faced some issues so far in Brazil and the SPA is looking to resolve those problems by reviewing and improving the authorisation procedure, utilising the lessons learned from the first cycle of licence authorisations.

A partial reason for delays in the initial licensing process was delayed certifications, especially as only six technical certification entities are currently recognised by the SPA.

The SPA will review procedures for certifying operators and suppliers in Q2 2026 with the aim of rectifying its previous delays.

Finally, the SPA will review its regime for sanctioning fixed-odds betting operators that violate its regulations in Q4 next year.

Just last week, the regulator suspended the licences of four operators that failed to deliver the necessary documentation.

Pixbet has since been reinstated and received a full licence from the regulator, although the other three companies will remain suspended until the certifications are completed.