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

In the wake of FanDuel and DraftKings giving up any hopes of a gaming licence in Nevada and leaving the American Gaming Association, prediction markets are front of mind for Ed Birkin this week. He’s not convinced they even have a long-term future in the industry, so why are the market leaders going all in?

This quickly develops into the difference between white, black and grey market gambling. Do grey markets actually exist or, as Robin Harrison suggests, is the definition of what constitutes a grey market being stretched to breaking point?

On Apple? So is Right to the Source!

Gambling in Argentina highlights the grey market challenge

Argentina, with its province-by-province framework, illustrates the grey market challenge quite nicely. Most provinces may have a licensing system, but the bulk of certifications seem to have been handed out for Buenos Aires province and the capital city. 

That doesn’t necessarily mean Argentina gambling licensees are just sticking to those two jurisdictions, however. There’s an element of parts of the gambling industry trying to have their cake and eat it, Ed argues, but does anyone actually face consequences for their actions?

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.

From 2 December, residents in the following countries will be unable to place bets with William Hill; Angola, Bolivia, Burkina Faso, Cameroon, Kenya, Mozambique, Nepal, Nicaragua, Nigeria, Republic of Congo, Democratic Republic of Congo, Somalia, Vietnam.

As explained on the William Hill website, any open bets will be settled as normal up to 2 December. Any bets due to be settled after that will be voided and refunded to accounts.

Customers will be able to log in to their accounts until 5 January to withdraw their funds.

From 6 January onwards, players’ login details will no longer work. To withdraw their remaining funds, they will have to contact the customer service team.

In 2022, Evoke licensed the 888 brand to the Africa-facing joint venture 888Africa for regulated online markets in the continent. Evoke retains a stake in the venture.

Ex-Paddy Power head of competitive intelligence Christopher Coyne serves as CEO of 888Africa, while former William Hill online manager director Andrew Lee holds the position of chief product officer.

Threat of retail closures in the UK

The withdrawal from these 13 markets comes after Evoke warned it could close up to 200 William Hill retail shops in the UK should the government increase gambling tax in the November budget, which is due next Wednesday.

Evoke is reportedly mulling the closure of up to 15% of its UK William Hill stores, with 1,500 jobs potentially being lost.

An Evoke spokesperson said: “As part of our ongoing planning, we are assessing the potential impact of different overall tax scenarios on our UK operations. This includes the difficult but necessary consideration for shop closures.

“We are mindful of potential tax increases in the forthcoming budget which would impact investment in the UK and drive more customers to the black 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.

Codere Online reported its Q3 earnings on Monday. It said net gaming revenue for the period had dropped slightly to €51.6 million from the €51.7 million reported last year. 

Adjusted EBITDA for Q3 was up €2.9 million or 93.3% compared to €1.5 million last year, with Codere Online reiterating its full-year NGR guidance of between €220 million-€230 million and adjusted EBITDA of €10 million-€15 million. 

The company’s NGR in Mexico was €26.8 million, a 0.4% year-on-year rise. Codere Online CEO Aviv Sher noted revenue had been flat in Mexico despite a 5% devaluation of the peso and a consistently low sports betting margin. 

However, Mexico is in the process of increasing its tax rate on gambling from 30% to 50%, as part of the government’s 2026 budget. 

The hike hasn’t yet been approved, but CFO Oscar Iglesias, who will shortly be replaced by Marcus Arildsson, expects it to come into effect 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,” he told analysts during the earnings call, in response to questions on its position in the market.  

“The tax obviously factors into that in terms of 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.” 

Mexico government targeting the wrong side of legality 

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

Its monthly active players in Mexico soared by 39% to approximately 88,300, compared to 50,200 in Spain. 

Elsewhere, Codere Online is working with the Mexican government to highlight the prevalence of the black market in the country.  

Iglesias said the government should be looking to bring illegal operators onshore as a source of additional revenue. 

“Directionally, obviously, a tax increase is not good,” Iglesias explained. “We always are looking for governments to look to increase compliance with anyone operating offshore or operating in the grey or black markets. That’s the first place we prefer for governments to look for additional revenues.  

“We are partnered with the Mexican government. We are partnered with governments in every market in which we operate, and we are going to find a way through this and continue to be confident that the Mexican market is going to be a winner for us over the short, medium and long term.” 

Tax rise might ease competitive landscape in Mexico 

Iglesias did note the incoming tax increase could dampen the competitive landscape in Mexico, perhaps benefitting well-established players such as Codere Online. 

“While it is difficult to know how other operators will react, we are expecting that this tax increase may have a chilling effect on both new market entrants in regards to their appetite for further investment in the Mexican market and on those not yet operating in Mexico, but with near or medium-term plans or ambitions to enter the market,” Iglesias said.  

“It is difficult to quantify the impact of that chilling effect, [but] we would at least directionally expect a more benign competitive landscape in Mexico going forward, which we believe will be to our and other incumbents’ benefit.” 

Codere Online five-year strategy does not include Colombia 

In the company’s Q1 results, Codere Online said it was pulling back in Colombia because of the 19% temporary VAT. Sher reiterated this strategic change on the business’ post-Q2 earnings call. 

The VAT is set to come to an end from the start of 2026, but the company is working under the assumption it will either be renewed or made permanent. 

Speaking on the Monday call, Codere Online executive vice-chairman Moshe Edree said the operator’s short to mid-term strategy “does not include Colombia”.  

“We just monetise it as it is. So we’re not going to invest any further unless the tax will change,” he said.  

Iglesias added more colour: “We continue operating under the assumption that this will continue, that this will get legislated in a more permanent way.  

“That said, that may not necessarily be the case. If it’s not the case, then we will rethink what it is we want to do. Obviously, that’s a game changer and fixes the primary problem in Colombia, which is the unit economics are not good in the context of a tax on customer deposits. It is a situation we’re monitoring. 

“As things stand today, it’s a tough market for us to find a way forward that makes sense for us.” 

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.

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.”

Kambi scores with Holland Gaming Technology

First, Kambi Group has signed a multi-year agreement with Holland Gaming Technology in the Netherlands.

Under the deal, Kambi will provide its full turnkey sportsbook solution to the operator. This includes advanced trading capabilities, an open platform and bet builder product.

The partnership comes after Holland Gaming secured a sports betting licence from Dutch regulator, Kansspelautoriteit. It is already active within the county’s online casino space.

“We’re excited to partner Holland Gaming Technology as they expand into sports betting,” Kambi CEO Werner Becher said. “Their strong marketing and deep industry expertise make them an ideal fit for our turnkey sportsbook solution.”

BetGoodwin launches EveryMatrix sports betting product

Next, EveryMatrix has also detailed a new sports betting venture, linking up with UK-facing BetGoodwin.

The operator has rolled out a full turnkey sports solution from EveryMatrix. This followed the signing of a multi-year full turnkey agreement signed in 2024.

The platform offers more than 200,000 monthly live events and up to 800 live markets on English Premier League fixtures. Betting options include pre-live and live bet builder across 11 sports, cash out functions and odds boost.

Julian Head, CEO of BetGoodwin, said: “This is a milestone launch for us. EveryMatrix’s modern sportsbook gives us a feature-rich platform that will help deliver an outstanding betting experience to our customers.”

Pragmatic Play opens Colombia studio

In other news, Pragmatic Play has expanded its reach in Latin America by launching a new live casino studio in Colombia.

Delivered and operated by ARRISE, the Bogotá-based studio will deliver localised, premium live casino experiences in Latin America. Supported by an investment of over $15 million, the facility is set to create over 1,500 new jobs.

More than 100 tables will be located at the studio. These include roulette and blackjack, all customised to local preferences and hosted by Spanish and Portuguese-speaking dealers.

Irina Cornides, chief operating officer at Pragmatic Play, said: “This new live casino studio in Colombia represents a major milestone in our native content expansion strategy across Latin America.” 

Michigan regulator targets illegal websites

Into the US, the Michigan Gaming Control Board (MGCB) has taken further action against unlicensed gambling operators.

The regulator issued cease-and-desist letters to eight online casinos found to be illegally offering iGaming to Michigan residents. The MGCB regularly sends these notices to tackle unlicensed activities.

Aussie Play, CryptoGames, FortuneJack, Hugewin Casino, My Stake Casino, Play at Harry’s Casino, RuneChat and Slots Garden were all contacted by the regulator.

“These unauthorised websites often appear sophisticated and legitimate, but they operate outside of Michigan law, MGCB Executive Director Henry Williams said. “The MGCB will not hesitate to intervene when we find operators ignoring our state’s gambling laws.”

NCPG welcomes affiliates in Texas and Vermont  

And finally, the National Council on Problem Gambling (NCPG) in the US has announced two new members.

The Texas Coalition on Problem Gambling and the Vermont Council on Gaming and Health have joined the organisation. Both groups will work with the NCPG and other members on supporting those impacted by problem gambling.

While the NCPG advocates for problem gambling support at the national level, its state affiliates focus on regional efforts. With the new additions, NCPG now has affiliates in 37 states.

“Every state has a unique gambling landscape, but the need for prevention and support is universal, NCPG Board President Derek Longmeier said. “Affiliate organisations are vital partners in NCPG’s mission.”

On Friday, Betsson announced its Q3 results for the period ending 30 September. Group revenue was up 5.6% to €295.8 million ($343.5 million), while EBITDA (€82.5 million) and operating income (€66.9 million) also increased by 2.7% and 3.7% respectively.

Q3 revenue from locally regulated markets shot up by 16% in Q3, accounting for 64% of Betsson’s total revenue, compared to 58% last year.

Overall growth was powered by performance in Western Europe, particularly Italy which achieved all-time high revenue across the quarter.

This was largely driven by growth in Betsson’s online casino product in Italy, which recorded trecord revenue for the period. The group did not break down its numbers by specific market.

Revenue for the whole of Western Europe’s in Q3 stood at €56.9 million, accounting for 19% of Betsson’s total group revenue for the quarter, up from 16% in Q3 2024. Broken down by vertical, iGaming revenue in the region came in at €45.7 million during the period, while sportsbook was €11.1 milion.

Betsson balance sheet supporting continued investment

In the press release announcing the results, Betsson CEO Pontus Lindwall said Betsson was continuing to “drive the digitalisation” of the global gaming market, with a geographically diversified offering protecting the company from potential headwinds in some markets.

“We have a proven, successful product portfolio consisting of both casino and sports betting, as well as a well-diversified mix of revenues from different geographical regions, which lowers the risks of periodically weaker developments in individual products or markets,” Lindwall said.

“I look forward with confidence to the end of the year and ahead to 2026 with the upcoming World Cup in football. Our strong balance sheet enables continued investments in product development and strengthened market positions to support continued stable profit growth and dividends to our shareholders.”

Record LatAm casino revenue for Betsson in Q3

A key area of focus for Betsson this year has been the LatAm region, as it launched in both Brazil and Paraguay in 2025, while also maintaining a presence in Colombia and Peru.

It’s proving a fruitful market, too, with LatAm revenue growing 10.2% year-on-year in Q3.

Casino revenue in the region was at record levels, increasing to €56.6 million from the €46.1 million generated in the same quarter last year.

This offset a year-on-year decline in sportsbook revenue from €23.1 million to €19.8 million.

Betsson attributed the sportsbook decline to seasonally lower activity and a lower sportsbook margin, with Q3 last year featuring the European Championship and Copa America football tournaments.

LatAm revenue accounted for 26% of Betsson’s revenue in Q3 compared to 28% in Q2.

However, Betsson noted continued underlying growth in Argentina in terms of customer deposits and turnover, while Peru and Colombia’s revenue also grew year-on-year.

Betsson plans to sustainably outgrow the market

For the nine months ending 30 September, Betsson reported an 11.7% increase in group revenue to €893.1 million.

EBITDA increased 6.5% to €244.4 million, while operating income also rose by 7.2% to €199.9 million.

Looking ahead, Betsson said its long-term plan was to sustainably “outgrow the market”, highlighting growth in existing markets, expansion into new markets and development of its B2B offering as growth areas.

Betsson initiates share buyback programme

Alongside its Q3 results, Betsson also announced it will initiate a share buyback programme with a maximum purchase amount of €40 million.

The buybacks will take place on the Nasdaq Stockholm stock exchange, with the process of repurchasing class B shares in Betsson to be managed by Arctic Securities AS.

The buyback programme starts on Friday and will last until 30 April next year.

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.

Land-based gambling was banned in Ecuador in 2011 through a referendum under then-President Rafael Correa.

But the possible return of casinos within five-star resorts has been included in the upcoming referendum, which is a typical method for enforcing new laws and economic and political measures in the South American country.

The plans come under new proposals from current Ecuador President Daniel Noboa.

On 5 August, Noboa set out seven questions to be included in the upcoming referendum, including whether to allow casinos in five-star hotels and whether the sector should be taxed at a rate of 25% of sales.

This tax revenue would go towards the financing of programmes to combat chronic child malnutrition and school feeding.

The question was at first rejected by Ecuador’s Constitutional Court because it was considered unclear for the public and included three topics in one question.

However, the question was then reformulated to focus on just the legalisation of gambling in five-star hotels. This was subsequently approved by the Constitutional Court.

Casino infrastructure is already in place, says local expert

The referendum is set to take place on 16 November and, should the re-legalisation of casinos receive the required support, Juan Carlos Loza Mendoza, head of LatAm gambling sales at ProntoPaga, predicts it won’t be long before land-based gambling makes a return to Ecuador.

“I think it will just be a couple months,” Mendoza tells iGB. “The infrastructure is ready. The culture is ready. Sports betting sites and online casinos are now working on it.

“The financial ecosystem and the payment ecosystem is ready to receive [land-based gambling]. There is a lot of protection [for] a big amount of money that will be processed. They’re ready.

“I believe it will be just a matter of couple of months, maybe three months.”

Land-based casino return in Ecuador would be ‘sensational’

Mendoza says the return of legal land-based casinos to Ecuador would be “sensational”.

Ramiro Atucha, who was CEO of platform provider Vibra Gaming between 2020 and 2025 and is an expert on LatAm gambling, believes the phrasing of the question centring gambling in five-star hotels is important.

“What’s happening now is they are working on authorisation and regulation for land-based casinos, but tied to five-star hotels which, in my opinion, is a very good start because it’s going to bring investment to Ecuador,” Atucha says.

“Ecuador is a very interesting market because their currency is the US dollar, so that simplifies things a lot. It has about 20 million inhabitants. It’s not that big, but it’s a dollar economy.”

However, Atucha notes Ecuador is currently facing social issues and political unrest, including a spate of violent protests after Noboa’s government decided to cancel fuel subsidies.

The Ecuador government claimed Noboa was the target of an alleged assassination attempt earlier this month.

Atucha says if the situation calms down, Ecuador could benefit hugely from the economic investment that comes with legal land-based gambling.

“They’re struggling with electricity, they’re struggling with social protest, et cetera,” Atucha declares. “If they manage to improve that situation and they manage to get some five-star hotels, it’s going to be very good for the economy, especially if it’s well taxed.

“Imagine if all the money that is currently being gambled with no taxes at all had some tax. The difference would be huge.”

Ecuador online reform shows progress

Notably, the 2011 referendum only strictly banned physical gambling, with online betting not forbidden.

Last year, Ecuador introduced reforms for its online betting grey market, with a 15% gross revenue tax for sports betting coming into effect on 1 July 2024.

Executive Decree No 313 also implemented a 15% withholding tax on player winnings.

The Ecuador government then lifted a ban on sports betting advertising, another signal of growing acceptance of gambling in the country.

Santiago Albán, managing partner of Ecuadorian law firm Heka, believes the online reform observed last year is an indicator the government is willing to implement a regulated land-based sector.

“The online betting reform demonstrated the government’s capacity and willingness to integrate gaming activities into the formal economy, establishing clear taxation, reporting and compliance obligations,” Albán comments.

“This development not only reflects a shift towards a controlled and transparent model of supervision but also serves as a regulatory precedent for the potential relegalisation of land-based casinos.”

The CGA issued a press release following media reports earlier in the week that claimed Curaçao’s Prime Minister Gilmar Pisas had assumed control of the gambling regulator after the entire supervisory board had resigned.

In its update, the CGA confirmed the resignation of its supervisory board in September, but clarified that responsibility for the regulator had transferred to Minister of Justice Shalten Hato on 19 August. Previously, it fell under the ministry of finance’s remit.

The process to appoint new members of the supervisory board has begun and the CGA stated there would be no impact on the performance of the authority’s supervisory duties.

Additionally, the implementation of the LOK, which started in 2024, will continue. All licensing and supervisory activities are expected to continue uninterrupted.

“The Curaçao Gaming Authority remains committed to ensuring the integrity and reliability of the gaming sector in Curaçao,” the CGA press release read.

CGA PR advisor slams ‘fake news’

The CGA’s marketing and PR advisor, Aideen Shortt, hit out at media reports which claimed the administrative changes had impacted the rollout of Curaçao’s LOK framework.

On Tuesday, Shortt said in a LinkedIn post: “Despite sensationalist headlines and fake-news articles there is no delay or deviation in the rollout of the LOK, and no disruption to the CGA’s licensing or compliance programmes.

“The resignation of the supervisory board is an administrative process following government transition. CGA supervision, enforcement and licensing activities continue without interruption. The rollout of the LOK remains unchanged.

“Once again I find myself having to urge caution to all readers about intended or unintended misinformation and conjecture about the CGA and the rollout of the LOK legislation.”

The LOK marks new era for gambling in Curaçao

Last December, Curaçao’s Parliament approved and passed the LOK on a 13-6 vote.

The move ushered in a new era for gambling regulations on the island, with the intention of improving Curaçao’s previous reputation as a haven for grey market operators.

Under the new regime operators have had to reapply for new look licenses, as the previoud ‘master licence’ system was scrapped.

Minister of Finance Javier Silvania previously called the LOK a “safety net” against offshore operators.

On Monday, Trinidad and Tobago Finance Minister Davendranath Tancoo fired a warning to illegal operators in his budget statement.

According to Tancoo, the National Lotteries Control Board (NLCB) contributes an annual GGR of nearly TTD3 billion ($441.9 million).

However, Tancoo said illegal lotteries offering bets and payouts facilitated by third parties on the NLCB’s legal lottery games “continue to impair the NLCB’s profit margins”.

Tancoo estimates revenue from illegal lotteries in Trinidad and Tobago amount to upwards of TTD9 billion a year, which is three times the licensed market.

As a result, he proposed increasing the penalties against illegal lotteries, beyond the existing sanctions in sections 19, 20 and 21 of the Gambling and Betting Act.

Section 19 would be amended to increase the penalty to a fine of TTD250,000 and imprisonment for three years, or conviction on indictment to a fine of TTD3 million and a prison sentence of seven years.

The plans are in line with the government’s Gambling (Gaming and Betting) Control Act 2021, which is awaiting its full enforcement. Currently, only parts I, II and X of the act have been proclaimed by the government.

Trinidad and Tobago looking to stay one step ahead

Tancoo also highlighted a new form of illegal gambling in Trinidad and Tobago, in which lottery tickets issued to players resemble a receipt from a grocery store, using the results from the NLCB’s online lottery draws.

In response to this, Tancoo proposed the introduction of a new criminal offence, which criminalises the receipt of a bet, issuance of a ticket or the payout of any proceeds from NLCB’s online draw results.

This offence would carry the same penalties laid out by Tancoo in the amended Section 19 of the Gambling and Betting Act.

Under the new offence, the NLCB’s evidence of its draw results and who it believes are authorised agents will be treated as prima facie evidence, allowing the police to act upon NLCB-provided information.

The law would also broaden the definition of “ticket” to cover “grocery receipts”.

Plans for a more efficient revenue transfer

Additionally, Tancoo said a lack of audits has led to the NLCB retaining “tens of millions of dollars” that should have been transferred to the government over the years.

To stamp out this issue, Tancoo proposed quarterly payments from the NLCB to the Consolidated Fund, the main bank account for the Trinidad and Tobago government. Currently, these payments are made on an annual basis.

NLCB would also be subject to financial limits expressed by the minister of finance for various expenditures, bringing in a “hard and fast budget” that would result in better revenue retention.

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.

By a 3-2 vote Tuesday, the Third Chamber of the Supreme Court ordered internet service providers to block access to illegal sports betting websites in Chile.

The decision upholds a protection appeal filed by the Concepción Lottery and reverses an April lower court ruling that refused to block platforms which were operating illegally.

The court ruled that refusing to block such platforms was illegal, as only companies with legal authorisation should offer online sports betting. It found that unauthorised sites harmed the lottery’s exclusive concession rights, violating its constitutional property guarantees.

Under current law, gambling is illegal in Chile unless offered by the Concepción Lottery, Polla Chilena, racetracks or at expressly authorised gambling casinos.

Internet service providers such as Claro Chile and Empresa Nacional de Telecomunicaciones must immediately block all websites requested by the Concepción Lottery.

“It is hereby ordered that the respondents may not broadcast or promote games of chance unless they provide legal authorisation and authorisation from the administrative authority,” the Supreme Court’s ruling read.

Supreme Court ruling sends a message to illegal sites

The ACCJ believes the Supreme Court’s ruling sends a “strong signal” to illegal online gambling operators.

In its view, the ruling confirms the ACCJ’s long-held claims that online gambling operators operate outside the law, without government oversight.

ACCJ President Cecilia Valdes said on Thursday: “We deeply appreciate the Supreme Court’s clear ruling on online gambling platforms, stating that they are illegal in Chile.”

According to the ACCJ, the ruling establishes a “significant legal precedent” and sends a warning to authorities, operators and the Chilean public that illegal gambling cannot be normalised.

The body expects the Chilean Department of Telecommunications and internet service providers to fully comply with the Supreme Court’s ruling.

Fresh calls for online gambling regulation in Chile

In addition, the ACCJ has called on Congress to advance the bill to regulate online gambling in Chile.

A bill was introduced in 2022 and passed by the Chamber of Deputies the following year. However, progress has since stalled, with the bill currently stuck in the Senate.

Valdes and the ACCJ hope the ruling marks another step in the right direction towards a regulated online gambling market in Chile.

“The next step is clear: enforce the ruling and move forward responsibly with serious regulations that respect the principle of legality and ensure fair competition,” Valdes continued. “We cannot allow legislation to be passed under pressure from actors who have operated illegally.

“Chile needs modern regulations, but ones built on compliance with the law, not pressure from those who have violated it. The most important thing today is that the discussion puts the consumer at the centre, that safeguards be set for those who legitimately seek entertainment.”

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.

BetMGM names Schwarz as new COO

BetMGM has announced the appointment of Jarrod Schwarz as its new chief operating officer.

Schwarz moves into the role after serving as the company’s chief product officer for nearly five years. He will now oversee product, customer operations, technology and trading.

Prior to joining BetMGM, he spent more than seven years at Disney, including the launch of ESPN+. He also worked at eBay and Bloomspot, a startup acquired by JP Morgan Chase.

“Jarrod has been an integral part of our incredible team, building BetMGM into one of the most recognisable and successful brands in sports betting and iGaming,” BetMGM CEO Adam Greenblatt said. “I’m confident that this change will ensure we continue to deliver exceptional products and experiences to our players.” 

Evolution launches new slots studio

Evolution has announced the launch of a new slot development studio in the form of Sneaky Slots.

The studio expands the group’s RNG portfolio, with a focus on titles that are “loud and full of character”. It has already rolled out its first game, Nip Tuck, with a new release due each month through the end of the year.

Sneaky Slots joins an extended portfolio of slot brands, which already includes Nolimit City, Red Tiger, NetEnt and Big Time Gaming.

Malcolm Mizzi, head of commercial operations of RNG at Evolution, said: “This is a natural next step for Evolution, creating an exciting new brand from the ground up and leveraging our immense knowledge base of slots development across multiple brands.”

Digitain secures Belgium licence

Digitain is set to expand its services into Belgium after securing an E Category Licence in the country.

The licence enables Digitain to provide its iGaming solutions in line with local requirements in Belgium. Digitain said this forms part of its wider, ongoing expansion strategy.

Digitain holds licences in other key European markets such as the UK, Malta, Romania, Greece and Sweden.

“This latest milestone reflects Digitain’s unwavering commitment to regulatory excellence, partner success and innovative product delivery across global markets,” Digitain said.

CT Interactive grows LatAm presence with Rushbet

CT Interactive has expanded its presence in Latin America through a partnership with Rush Street Interactive and its RushBet brand.

Rushbet will roll out the complete portfolio of games from CT Interactive in both Mexico and Peru. This includes content such as Lucky Clover, 40 Treasures, Win Storm and Big Chilli.

CT Interactive said the partnership underscores its commitment to long-term collaboration and delivering tailored gaming solutions across Latin America.

“Our partnership with Rushbet strengthens our strategy for Latin America,” said Martin Ivanov, COO of CT Interactive. “By delivering our full library of games, we’re bringing high-performing, locally relevant content to a broader audience.”

Winpot partners InsightPlay for player acquisition

Mexico-facing online casino and sportsbook Winpot has entered into a customer-focused partnership with InsightPlay.

Under the deal, InsightPlay will support Winpot with player acquisition, engagement and retention. This will include making use of InsightPlay’s AI technology for personalised, real-time interactions with players.

Powered by the Wiztech platform, Winpot is regarded as one of the leading operators in the Mexican market.

Yoni Sidi, CEO of Winpot, said: “Being able to communicate with players and engage with them in an authentic way is critical to building strong relationships that ultimately lead to them joining our brand and staying with us.”

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.

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.  

Revenue for the six months to 30 June reached €387 million ($452.3 million), Playtech said in its H1 results announcement. This lagged behind the €429.7 million reported in H1 2024.

The new-look agreement with Caliente caused a 9% drop in B2B revenue to €347.6 million, as Playtech stopped receiving an additional B2B services fee during the period. As such, revenue from the joint venture declined during the first half.

Announced in September 2024, the new agreement signalled the end of a dispute between the two companies, with Playtech holding a 30.8% interest in Caliplay as of 1 April this year.

Excluding the impact of the revised agreement, Playtech’s B2B revenue was up 3% year-on-year. Playtech maintained the joint venture is “ideally placed to deliver significant value” for the group in the mid-term.

“Our revised agreement with Caliente Interactive, which completed in March, sets both parties up for continued success in the future,” Playtech CEO Mor Weizer said. “Caliente Interactive paid its first dividends in the second half of the year following a period of strong performance.”

Caliente impact clear to see with B2B decline

Taking a closer look at H1 data, the biggest B2B decline came in Latin America – on the back of the revised Caliente agreement – with revenue in this market falling 32% to €87.7 million.

UK B2B revenue dipped 3% to €64.2 million. Playtech reported growth across new and existing licensees but absorbed a decline in revenue from an operator continuing to insource their self-service betting terminals.

There was better news in Europe, however, where revenue climbed 4% to €102 million. The supplier said this was primarily driven by strengths in Poland, Spain and Switzerland. It added that it continues to scale its product offering across European markets. Rest of world revenue increased 27% to €6.6 million.

Playtech also saw growth in the US and Canada, with revenue jumping 64% to €21.8 million. In the US, revenue more than doubled, due to a combination of increased wallet share with existing licensees and the impact of successful launches with new operators in 2024.

The group went live during the year with several major brands including DraftKings, FanDuel and Delaware North.

Playtech returns to B2B focus with Snaitech sale

H1 also saw Playtech complete the sale of Snaitech to Flutter Entertainment in a deal worth approximately €2.3 billion. This lined up with the supplier’s switch in strategy to become a pure-play B2B supplier.

Also forming part of this new approach was the sale of HappyBet, which went through on 28 May. The German-facing brand was sold to Pferdewetten AG subsidiary NetX Betting, just two months after Playtech began the sale process.

UK affordability regs hit Playtech H1 B2C revenue

As a result of these sales, Playtech H1 B2C revenue totalled €41 million, down 17% year-on-year. As HappyBet was disposed of part-way through H1, Playtech only drew €7.8 million from the business.

The remaining €33.2 million of B2C revenue came from Sun Bingo and other B2C activity. This was 17% lower than the previous year, with Playtech blaming increased regulation including financial vulnerability verifications in the UK. This, it said, resulted in a drop in overall player activity.

While Wiezer said recognised revenue was down, he talked up what he saw as a “strong” performance in H1. He said Playtech transitioning “back to its roots” as a predominantly pure-play B2B business will be of value in the long term.

“We continue to see significant growth opportunities in the market for Playtech,” he said. “I am confident that the combination of our market-leading technology and talented people puts us in a strong position to deliver on this exciting potential.”

Earnings-wise, Playtech reported €12.9 million in EBITDA, which was 87% short of €99.3 million in 2024. However, adjusted EBITDA came in at €91.6 million. Although 16% less than the previous year, this was in line with expectations.

Pre-tax loss for the period hit €58.8 million, while after tax, loss from continuing operations stood at €78.1 million. However, when including €1.65 billion in profit from continuing operations – namely the Snaitech sale – this left a healthy bottom line net profit of €1.58 billion, compared to just €5.9 million in 2024.

But when adjusting this bottom line to discount one-off items, including selling Snaitech to Flutter, net profit was €93.1 million, marginally ahead of €92.3 million last year.

What can we expect for Playtech in H2?

In terms of the rest of the year, Playtech said it has had a “solid” start to H2 with normal seasonality.

It has plans to increase investment for growth in both the US and Brazil. However, it flagged certain headwinds in Brazil and Colombia. In its May trading statement, Playtech highlighted Brazil’s transition to a regulated market, as well as Colombia introducing a temporary VAT charge.

Despite this, it remains on track to deliver FY 2025 adjusted EBITDA ahead of expectations. As such, it has retained its guidance of between €250 million and €300 million for the full year.

“These results show the strong start Playtech is making in its transition back to its roots as a predominantly pure-play B2B business,” Weizer said.

“I’m very pleased we have reported earnings ahead of expectations from earlier in the year, reflecting the strong performance across our key markets.”

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.” 

On 5 August, Ecuador President Daniel Noboa laid out seven questions to be included in the upcoming referendum. The final one focused on whether citizens would support the reopening of land-based casinos.

Ecuador is somewhat unusual in that the country holds referenda relatively frequently. Questions can focus on a wide array of topics.

The referenda give the public a chance to be involved in key decisions on topics including defence, finance and criminal law.

Casinos were banned in a 2011 referendum, but Noboa’s questions proposed the reopening of land-based casinos based within five-star hotels, taxed at a rate of 25%. This would go towards the financing of programmes to fund school meals and combat chronic child malnutrition.

However, last week the constitutional court ruled the question didn’t meet its parameters for two reasons.

The first was that the preamble to the referendum question wasn’t clear enough to readers and would create confusion among voters as they lacked the required information to be able to answer properly.

The second reason for the exclusion of the question was that it touched on three topics, which were the reopening of land-based casinos, the creation of a new gambling tax and the specific allocation of tax proceeds.

With the three topics included in just one question, voters would have had limited freedom to disagree on certain aspects of the proposed law.

The constitutional court rejected the question in its current form, although the proposal could yet be amended to ensure it falls in line with Ecuador’s constitutional limits.

“With these decisions, this body ensures that proposals for amendments to the constitutional text and those for referendums respect constitutional limits and are formulated with clarity and loyalty to the voters,” the court said.

Another blow to land-based casinos prospects in Ecuador

This isn’t the first time Noboa has floated the idea of reopening casinos in Ecuador.

Last January, he scrapped a question for a 2024 referendum that again enquired about the possibility of reopening casinos.

According to Noboa, the president felt it was inappropriate to include the question due to the rising levels of civil unrest in Ecuador, with other questions on topics such as fighting organised crime remaining on the referendum.

However, Ecuador did make changes to its online sector during 2024, with 65 companies registering in H1 to pay the new 15% gross revenue tax, which came in on 1 July last year.

Under Executive Decree No 313, player winnings are now also subject to a 15% withholding tax.

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.”

Arizona targets unlicensed website

The Arizona Department of Gaming (ADG) has issued cease-and-desist orders to four unlicensed and unregulated gambling operators.

The operators are accused of offering access to illegal online platforms, including sweepstakes casino-style models and event wagering sportsbook betting options.

Fliff Online Gambling and Thrillzz Mobile Gambling have been flagged for event wagering. The ADG also identified BettySweeps Casino and Pulsz Casino as offering sweepstakes options to players.

“Unlicensed operators operating outside the law and without regulatory safeguards pose serious risks to consumer protection and financial security across the state, undermining the integrity of Arizona’s regulated gaming industry,” the ADG said.

Kambi pens betting deal with Oneida Indian Nation

Kambi Group has signed a long-term sports betting partnership with the Oneida Indian Nation.

Kambi will provide its retail sportsbook solution to Turning Stone Enterprises’ three locations in upstate New York. The solution will replace the current offering from a third-party sports betting supplier.

Turning Stone Enterprises is the parent organisation for all business operations of the Oneida Indian Nation. Its venues include Turning Stone Resort Casino, YBR Casino & Sportsbook and Point Place Casino.

Werner Becher, CEO of Kambi, said: “Oneida has a proven track record of offering best-in-class gaming experiences and we look forward to working with them to ensure they have an unparalleled sportsbook offering for years to come.”

RubyPlay partners second Ondiss brand in Argentina

In South America, RubyPlay has expanded its presence in Argentina by partnering with Ondiss-powered Casino Club.

RubyPlay content is now available to Casino Club users. Titles include Volcano Rising SE, Zeus Rush Fever Deluxe and Elephant Stampede.

The deal follows the launch of RubyPlay with Ondiss-powered Casino Magic last year.

Eyal Loz, chief product officer at RubyPlay, said: “This launch with Casino Club reflects our deep commitment to Argentina’s vibrant iGaming market.”

Parimatch nets Manchester United deal

Parimatch has entered a new partnership with English Premier League football club Manchester United.

According to Insider Sport, Parimatch branding will feature on LED perimeter boards at every home match. This began with the match against Arsenal on Sunday.

Parimatch will also work with United on a series of fan-focused regional campaigns. These will include VIP matchday tickets and interactive fan competitions.

Betway Scores announces first global ambassador

Betway Group-owned Betway Scores has named Italian football journalist Fabrizio Romano as its first global ambassador.

Romano will offer updates, behind-the-scenes insights and commentary via the Betway Scores app. A Betway Scores spokesperson said: “We’re thrilled to welcome Fabrizio as our first global ambassador. His reputation for accurate information from the football world is second to none. He’ll bring tremendous value to our users.”

Betway Scores offers fans access to live scores, results, fixtures and other sports content.

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.

Peru’s nascent licensed gambling sector was thrown into stormy waters last year, when a 1% selective consumption tax (ISC) on the value of every bet was reintroduced. It had originally been scrapped from proposed legislation in July 2021.

The consumption tax was approved in mid-December, with the Peru government confirming it would come in from January. The initial tax rate would be 0.3% of every bet, before the full 1% rate kicked in from 1 July onwards.

Nicolás Samohod Rivarola, founding partner of local law firm Samohod Lawyers, warns the impact of the current consumption tax on the regulated market will be “catastrophic”.

“We are talking about the future, about the very permanence of the activity in the market,” Rivarola tells iGB.

“That is how apocalyptic the impact of the ISC would be on the Peruvian market if it remains as it is currently.”

Operators forced into lose-lose position

Gonzalo Perez, CEO of the market-leading operator Apuesta Total, previously told iGB the consumption tax, alongside the existing 12% tax on GGR, would lead to the tax burden on operators doubling.

In neighbouring Colombia, operators have looked to offset the effects of a new temporary 19% value-added tax (VAT) by giving players bonuses. However, this has heavily impacted profitability in the market, leading Codere Online to reduce operations there “to the bare minimum”.

The situation is similar in Peru, with operators sitting between a rock and a hard place. The question is whether they should risk their profitability to try and maintain market share by absorbing the tax’s impact themselves.

When asked what operators are concerned about with regards to the tax, Rivarola says bet amounts for players will decrease once the tax costs are passed on to them.

“The portfolio of customers to whom the tax is transferred will see the initial amount of their bet decrease, a fact that is unacceptable for the player. [It creates] a situation in which the temptation for the end consumer to direct their gaze to unregulated gambling scenarios is very risky and highly contingent,” Rivarola warns.

“On the other hand, if the operator directly assumes the burden and impact of the ISC, the margin of the business will be so small that investment will be discouraged as well as the economic-financial planning of any business model.”

Is the consumption tax in Peru unconstitutional?

Ultimately, the additional consumption tax could harm the government’s revenue collection aims. Rivarola says there will only be one winner – the illegal market.

“There is no other way or alternative to save our market than to repeal this disastrous tax.”

One way out for the licensed Peru market could lie in the tax being deemed unconstitutional. Rivarola is unsure whether the current structure of the tax is compatible with the sector in the long-term.

“In my opinion, the ISC for sports betting and/or remote gaming in Peru, as structured by the Congress of the Republic and by the Ministry of Economy and Finance, constitutes an unconstitutional tax because it is anti-technical and confiscatory,” Rivarola explains.

If the government does persist with the tax, Rivarola says it must at least assess the consumption tax’s impact on operator net win or GGR.

Dent in Peru’s gambling ambitions

Much of the frustration around this new tax relates to operators being largely happy with the market before this policy emerged.

With its regulation coming into effect last year, Peru is considered to have a very strong framework in comparison to some neighbouring LatAm markets.

The market was expected by many to become a podium player in the region. However, that optimism has been thrown into doubt by this unsettling tax measure.

Rivarola warns it could “destroy” the decades-long work and efforts to arrive at a regulated online market in 2024.

Rivarola puts the blame for the tax firmly on the government, praising the regulator – the Ministry of Foreign Trade and Tourism (Mincetur) – for its lengthy work in developing and establishing the market.

“We have one of the best regulatory authorities in the world,” Rivarola adds.

In his view, the licensed sector must continue to “fight to survive, to protect its investments and companies, to preserve the jobs of its thousands of workers”.

“The operators are heroic businessmen (national and foreign), who seek to make formal companies despite obstacles and adversities, who know how to work in a highly regulated and supervised market like this,” Rivarola concludes.

“Please do not abuse them, do not destroy their investments, do not leave their workers on the street without formal employment.”

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%.

Las Vegas ‘too expensive’ for tourists

The US gambling haven of Las Vegas is becoming “too expensive” for tourists, according to a new poll.

Some 87.9% of over 15,000 respondents said the Nevada city is not affordable for tourists. In contrast, just 6.6% said it was not too expensive, while 5.5% were undecided.

Conducted by Las Vegas Locally, the poll, published on X, also drew comments suggesting the problem is deeper than simple affordability for tourists. Several comments said locals can also no longer afford to visit the famous Strip.

Concerns raised included minimum bets of $25 on tables, the price of food and drinks and rising hotel room costs.

Betano scores extension with Sporting CP

Betano has signed an extension to its partnership with Portuguese football club Sporting CP.

The new deal runs for four years, through to the end of the 2028-29 season. Betano, a brand of Kaizen Gaming, will remain the club’s premium sponsor and work with Sporting on various activations and initiatives.

The agreement covers Sporting’s A and B teams. Betano branding will continue to appear on the front of Sporting playing jerseys.

“We are delighted to extend our partnership with Sporting Clube de Portugal,” Kaizen Chief Commercial Officer Julio Iglesias said. “Over the years, we have built a solid relationship based on trust and shared ambition.”

Gaming Corps doubles monthly production with expanded agreement

Gaming Corps is to double its monthly game output under an expanded deal with an unnamed operator.

The widened remote game server (RGS) agreement is effective immediately. Gaming Corps said the partnership is with a “a major global iGaming group” and will deliver two new titles per month.

Swedish-based Gaming Corps added that the partnership forms part of its broader strategic partnership with major shareholder Denwena Limited. This, it added, has led to increased production demands for original content.

Gaming Corps CEO Juha Kauppinen said: “Our close collaboration with Denwena gives us the opportunity to write completely new chapters in our journey.”

CT Interactive eyes Argentina with Ondiss deal

CT Interactive has announced a strategic partnership with Argentine online casino platform provider Ondiss.

CT Interactive’s titles have been integrated into the Ondiss platform. This will expand the company’s reach within the regulated iGaming market in Argentina.

The deal builds on an existing retail relationship with Ondiss, covering the Casino & Hotel Casino Magic in Neuquén.

“Partnering with Ondiss marks a pivotal step in our Latin America strategy,” CT Interactive Chief Operating Officer Martin Ivanov said. “This collaboration allows us to strengthen our footprint in one of the most promising markets in the region.”

Incentive Games enters UK with Jumpman Gaming

Incentive Games is to launch real-money content in the UK through a link-up with Jumpman Gaming.

The deal will see content from the provider’s Incentive Studios division added to Jumpman-owned platforms. Jumpman operates a number of online casino and bingo sites.

The announcement comes after Incentive Games secured a licence from Britain’s Gambling Commission in March this year.

Ahmed Baker, chief commercial officer at Incentive Games, said: “We’re thrilled to partner with Jumpman Gaming as our first UK operator, marking a major step forward in Incentive Games’ real-money expansion. Their reach and unique white-label model give us access to a wide network of brands, making this a powerful launchpad.”

Rush Street Interactive revenue hit $269.2 million in Q2, a 22% year-on-year rise, while adjusted EBITDA increased 88% to $40.2 million from $21.4 million in the same quarter last year.

Net income, meanwhile, stood at $28.8 million, an impressive improvement when considering Q2 2024 resulted in a net loss of $0.3 million.

Q2 marked the ninth consecutive quarter for Rush Street Interactive of improved quarter-on-quarter revenue and adjusted EBITDA, which it says underlines the strength and consistency of the company’s business model.

RSI ups 2025 guidance after strong Q2

The results have led Rush Street Interactive to raise its full-year guidance, expecting revenue to reach between $1.05 billion and $1.1 billion, while its EBITDA target now stands at $133-$147 million.

In the company’s Q2 earnings call, Rush Street Interactive CEO Richard Schwartz voiced his confidence in the business’ strategy.

“The positive momentum across our markets are far outweighing any headwinds from increased taxes in the US and Colombia,” Schwartz said.

RSI excelling as exclusive Delaware iCasino operator

In late 2023, Rush Street Interactive succeeded 888 as the exclusive operator for the Delaware Lottery’s iCasino offering.

In the last 12 months, Rush Street Interactive has generated $102 million in iCasino gross gaming revenue in Delaware, compared to just the $15.1 million 888 achieved in its final year as the exclusive operator.

It is an example of Rush Street Interactive’s strong performance in North America, with monthly active users up 21% year-on-year in Q2 to approximately 197,000. ARPMAU in the region hit a new quarterly high at $391.

Aside from Delaware, other standout markets included Michigan, which grew 42% year-on-year, while revenue from West Virginia was 47% higher.

The operator ranks among the top four for net revenue in US iCasino, with the company active in as many states for the vertical as any other operator.

“This strong momentum reflects the effectiveness of our focus on markets where we can deploy our full suite of gaming offerings and maximise player value,” Schwartz declared.

Rush Street Interactive boasts a total addressable market (TAM) of $145 billion, with $109.8 billion of this in the US and $6.6 billion in Canada. In LatAm, the operator has a current TAM of $28.9 billion.

RSI flourishing in spite of significant headwinds

The headwinds Schwartz referred to in the earnings call largely centre around the new temporary value-added tax (VAT) in Colombia.

In February, Colombia’s government announced a 19% VAT on player deposits to online gambling operators, with the measure expected to last until the end of 2025.

Similar to Stake and other market leaders in Colombia, Rush Street Interactive introduced a bonusing strategy to absorb the impact of the tax on bettors.

As a result, net revenue was flat in Colombia despite Rush Street Interactive’s GGR in the market increasing by over 70%.

With the VAT set to expire at the end of the year, Rush Street Interactive CFO Kyle Sauers expects the company’s GGR and net revenue growth in Colombia to kickstart from 2026 onwards.

“It’s a big headwind for us here while this tax is in place, and that obviously hits revenue and profitability,” Sauers explained. “So we’re pretty excited for the time when that isn’t in place any longer.”

Mexico set to become a key market

Elsewhere in LatAm, monthly active users rose nearly 42% year-on-year to 403,000, although average revenue per monthly active user across the entirety of LatAm dropped from $38 to $30, which it again attributed to the bonusing strategy in Colombia.

The company achieved impressive results in Mexico, with revenue up by 125% when compared to Q2 2024, while it also grew 40% from Q1 this year.

Schwartz believes Mexico will ultimately become one of Rush Street Interactive’s largest markets, with the revenue growth in that market ahead of where it was in Colombia during the same timespan after launch.

“We are very unique in our user experience, and I think it resonates very well with the players down there who are looking for something different and exciting and differentiated and high quality compared possibly to what you see in the market,” Schwartz said.

“So, we are very optimistic and continue to believe that can be a very significant market for us for many years to come.”

Significant TAM in LatAm for Rush Street Interactive

In its Q2 presentation, Rush Street Interactive explained how it expects to have a total addressable market of around $28.9 billion across LatAm by the end of 2028.

Already live in Colombia, Mexico and Peru, Rush Street Interactive lists Chile, Ecuador and Argentina as potential expansion opportunities.

Also included in the potential expansion section is Brazil, with Rush Street Interactive yet to enter the market despite seven months of the regulated online market now being in the books.

In Rush Street Interactive’s post-Q2 call last year, Schwartz expressed interest in the market, although he also stated any entry would involve a cautious approach.

“Brazil is a large and exciting market,” Schwartz said last year. “There’s lots of moving parts there. It’s very important that we sort of remain disciplined and more thoughtful about how we approach the market.”

Shares in Rush Street Interactive closed up 25.53% at $20.16 per share in New York, with its share price up 101.4% over the past 12 months.

Land-based gambling in Slovenia rules the roost

In the Slovenian gambling market online gaming licences are linked to brick-and-mortar properties, meaning the channel remains smaller than casinos and gaming halls. Land-based gaming, with 12 casinos in Slovenia and 25 gaming halls, continues to perform well, and Ed has the figures to shed more light on revenue it’s generating.

But the online tethering and small market size is stunting online growth. Where other Eastern European gaming markets are transitioning into ominichannel operations, Slovenian gambling remains an in-person proposition. 

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Why can’t Chile regulate online gambling?

A long-haul flight later, we touch down in Chile, where legislative progress for online gambling has stalled. A bill introduced in 2022 and passed by the Chamber of Deputies in 2023 is now stalled in the Senate. As ever, offshore operators are thriving, with potential licensees unable to gain a foothold. 

We’ve also got some commentary on rap beefs in relation to New York downstate casinos. There’s also a few words on Brazil, and Ed complaining about Sheffield Wednesday falling into disrepair. 

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.

The choice of markets may seem somewhat random, but it’s at least somewhat deliberate. We want to offer listeners a truly global view of the gaming market with the numbers to back it up. 

Panama online gaming: A springboard for challenger brands?

We kick off in the Panama gambling market. It’s a small country where regulated online gambling GGR per capita is just $8, compared to $48 in Brazil or $27 in Mexico. Yet companies such as Codere Online see significant potential there.

And with taxes going up in larger territories, does that make smaller regulated markets such as Panama more attractive, to use as a springboard for larger markets further down the line?

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Liechtenstein casinos count the cost of self-exclusion

Next we move to Liechtenstein, where a self-exclusion passporting scheme with Switzerland is taking its toll on local casino operators. 

Liechtenstein casinos are required to exclude players that have signed up to Switzerland’s self-exclusion scheme. The government expected this to prompt a 30% drop in gaming revenue, but within two weeks Liechtenstein casino revenue fell 85%. The market is now on track for a €50 million year-on-year decline in gambling tax revenue with one casino in Eschen already shutting its doors permanently. 

The kicker for the Liechtenstein operators is the self-exclusion passporting doesn’t apply to German or Austrian casinos, so players can just cross the border and gamble. Ed manages some outstanding off-the-cuff calculations to size up the market in a matter of seconds. 

Italian gambling: Now that’s resilient!

Finally we touch on Italy, where Ed spent last week conducting a market research project (definitely not a holiday). Despite Italian gambling operators facing an advertising ban and a pandemic, the market continues to grow. It’s also increasingly consolidated, with Lottomatica building up a strong position to establish a leading position in the market. 

Coincidentally, remember Panama’s online gaming GGR per capita of $8? Italy’s is $118 for contrast. 

Get all these stats and more in the full episode!

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.”

Alexander Pechtold exits as chair of Nederlandse Loterij

Nederlandse Loterij has announced the planned departure of Chairman Alexander Pechtold after more than four years in the role.

Pechtold was recently reappointed to a second four-year term as chairman. However, after he was appointed mayor of the municipality of Delft, Pechtold decided he will step down from the lottery.

He will remain in the role until 1 January 2026. Nederlandse Loterij will now commence a search for a suitable successor.

“I leave behind an organisation that is ready for the future, with a clear positioning, an ambitious strategy, and enthusiastic and driven employees,” Pechtold said.

EveryMatrix extends US presence with Boyd

EveryMatrix has expanded its presence in the US by launching content in partnership with Boyd Interactive in New Jersey.

Boyd Interactive brands Resorts and Mohegan will have access to EveryMatrix’s library of exclusive titles from its in-house studios. Titles from Fantasma Games and Armadillo Studios will be made available via integration with SlotMatrix.

The SlotMatrix game aggregation platform features more than 37,000 games from over 350 studios.

EveryMatrix entered the US in February this year by partnering with betPARX, also in New Jersey. It has also rolled out several games in North America this year such as Glorious Diamonds.

Kambi names Lenoble as Latin America sales head

Kambi Group has appointed Mateo Lenoble as head of sales in Latin America.

An experienced professional, Lenoble joins Kambi after 10 years at Sportradar. He had roles there as director of sales and most recently vice president of account management.

Kambi said the new hire reinforces its commitment to expanding its footprint across Latin America. The provider offers a range of sports betting products and services in the region.

“The region is full of opportunity,” Lenoble said. “Kambi’s reputation for product excellence, flexibility and regulatory expertise positions us perfectly for success.”

Eddy takes chief revenue role at Yolo Group

Another new appointment is Stephanie Eddy, who has joined Yolo Group as chief revenue officer.

Eddy will oversee commercial performance across key regions and strategic channels within the Yolo Entertainment division.

She joins Yolo after more than 11 years with Betway. Eddy was most recently commercial development director after serving in various other positions during her time with the business.

“Steph is a proven leader with the commercial instincts and strategic vision that align perfectly with our ambitions,” Yolo Group CEO Matthew D’Emanuele said. “We are thrilled to welcome her to our leadership team.”

Stake.com scores partnership with football star Evra

Stake.com has signed former professional footballer Patrice Evra as a new global ambassador.

Evra will work with Stake.com on sports promotions and offer betting tips to customers. He will also take part in various VIP experiences run by the operator.

Capped 81 times by France, Evra played for several major clubs during his career. He is best known for his time with English Premier League side Manchester United, for whom he played between 2006 and 2014.

“With five Premier League titles, three League Cups and the 2008 UEFA Champions League wins under his belt, we’re beyond excited to have this champion as part of the Stake family,” Stake.com said.

Revenue for the three months to 30 June was €303.7 million ($352.9 million), Betsson said in its Q2 report. This exceeded the €271.5 million reported in Q2 of 2024 and was also 3.4% ahead of Q1 this year.

Record figures in Latin America and Western Europe were stand-out highlights for Betsson in the quarter, with CEO Pontus Lindwall focusing on the former. LatAm revenue topped €84.7 million, a rise of 35.4%, helped by high customer activity and record deposit levels.

Peru and Argentina were singled out as key growth markets in the region for the group. On top of this, Betsson secured a full licence to offer online and sports betting in Brazil in March. This will build on the presence it has had in the country since acquiring a 75% stake in local sportsbook operator Suaposta in 2019.

“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,” Lindwall said.

Nordics still a sticking point for Betsson

As for its performance in other areas, Western Europe revenue hit a new Q2 high of €59.3 million, an increase of 35.6%. Betsson put this down to a record performance in Italy and growth in France, although Belgian revenue dipped slightly.

Central and Eastern Europe and Central Asia (CEECA) revenue also edged up 3.7% to €118.2 million, meaning it remains the group’s primary revenue region. Growth was reported across Latvia, Lithuania, Croatia, Greece, Georgia and Poland.

However, the situation was very different in the Nordics region, where Betsson has its roots. Revenue was down 28.4% to €33.9 million as a consequence of lower marketing investment. Nordics revenue was also down in Q1.

The remaining €7.6 million was attributed to Rest of World operations, up 93.7% year-on-year. Betsson said this was mainly driven by a favourable sportsbook margin and its August 2024 acquisition of Sporting Solutions.

CEECA drew 39% of total Q2 revenue, ahead of Latin America on 28% and Western Europe 20%. Nordics contributed 11% and Rest of World 2%.

Revenue rises despite reduced customer activity

Looking at the group as a whole, casino revenue increased 11.1% to €212.4 million, or 70% of overall revenue. This was despite only a modest rise (0.9%) in gross turnover to €9.05 billion.

As for sportsbook, revenue climbed 14.9% to €90.0 million, representing 29% of total Q2 revenue at Betsson. This was an impressive feat considering gross sportsbook turnover declined 4.3% to €1.47 billion.

Revenue from other products including poker and bingo dropped 35.0% to €1.3 million, with this accounting for just 1% of total revenue.

Betsson also noted that revenue from locally regulated markets increased 33.0% to €199.6 million, or 65.7% of total revenue.

As for customer behaviour, deposits in Q2 was up 4.4% year-on-year at €1.49 billion. This was despite active customers falling 1.4% to 1.3 million and a 3.7% drop in registered customers to 30 million. Betsson put the latter down to its exit from certain markets.

Betsson in ‘strong’ position for M&A

During its Q2 earnings call on Friday, Lindwall addressed Betsson’s M&A strategy. Towards the end of Q2, Betsson pulled out of its planned acquisition of Holland Gaming Technology and Holland Power Gaming.

At the time, Betsson said this was due to the length of the approval process by Dutch gambling regulator Kansspelautoriteit (KSA). The group said KSA did not issue a decision by the agreed long-stop date, so it elected to withdraw from the deal.

However, Lindwall said M&A is very much still part of Betsson’s future plans, saying the group has a number of opportunities to consider.

“We are in a better position than ever with M&A,” he said. “We have a very strong balance sheet and we have a few interesting opportunities in the pipeline. This could be in existing markets where we want to strengthen our presence or acquisition to move into new markets.”

Net profit nears €50 million in Q2

Cost of services increased 16% on the back of higher gaming taxes in some markets. On top of this, operational costs were up 10.8% due to higher marketing and personnel spend.

However, such was the level of revenue growth that operating profit was 7.6% higher at €69.0 million. After finance costs, pre-tax profit hit €63.7 million, a rise of 11.6%.

Betsson paid €14.6 million in income tax, leaving a net profit of €49.2 million, up 10.8% year-on-year. In addition, EBITDA was 8.5% higher at €161.8 million.

Growth present throughout H1

Looking at the six months to 30 June, the figures told a similar story. Revenue was 14.9% up to €596.3 million, with this leading to a 9.0% rise in operating profit to €133.0 million. This was despite higher services and operational costs.

After finance costs, pre-tax profit hit €125.5 million, a rise of 12.5%. Income tax amounted to €28.2 million, meaning a net profit of €97.3 million, up 11.6%. EBITDA was also 8.4% higher at €84.1 million.

“We are entering the third quarter with good pace and confidence,” Lindwall said. “With a constant focus on product development, data-driven marketing and responsible gaming, we are well placed to continue delivering profitable growth.”

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.

Right to the Source on Apple Podcasts

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.”

Hard Rock has suspended Alex Pariente, the company’s senior vice president for hotel and casino operations, weeks after explosive claims from a whistleblower of an alleged structuring scheme at Hard Rock Punta Cana in the Dominican Republic.

The whistleblower, a federal informant, accused Pariente of allowing a bevy of illegal bookmakers to gamble at the resort, including Matt Bowyer, a Southern California bookie awaiting sentencing on federal money laundering charges. Bowyer is known mostly for accepting approximately $325 million in illegal sports wagers from Ippei Mizuhara, the former interpreter for baseball star Shohei Ohtani.

“Hard Rock International is aware of the allegations involving one of our executives and is treating the matter with the utmost seriousness,” the company wrote in a statement. “Honesty and integrity are core values of our organization, and we hold all team members — regardless of their role — to the highest ethical standards.”

The suspension was first reported by the New York Post Monday morning. Hard Rock suspended Pariente without pay pending results of an investigation, the Post reported.

Deep experience in the Caribbean

While Pariente has been based in South Florida for nearly seven years, he has extensive experience in the Caribbean. Shortly before the Covid-19 pandemic, Pariente spent 10 months at Nexus, an international hospitality real estate development and asset management company located in Nassau. The Bahamas company is backed by Tiger Woods, Ernie Els and Justin Timberlake, according to Pariente’s LinkedIn bio.

Prior to that, Pariente spent 13 months as executive vice president of casino operations & marketing at Baha Mar, a 1,000-acre resort complex located on the Bahamas island of New Providence. Pariente joined Baha Mar in 2017 after a short stint at Hard Rock Punta Cana. There, he served as chief gaming officer at the largest casino resort in the Dominican Republic.

He returned to Hard Rock International in Feb. 2019, moving to the company’s headquarters in South Florida. The Post broke Monday’s story several weeks after Casino.org published a detailed expose alleging a series of transgressions by the executive tied to overseeing the Punta Cana casino.

Pariente did not respond to a call from iGB on Monday seeking comment.

High rollers in Punta Cana

Among the most serious allegations, Pariente is said to have knowingly allowed several illegal bookies, including Bowyer, to gamble at the casino, Casino.org reported. The allegations were made by R.J. Cipriani, a federal informant in a joint Las Vegas-Southern California investigation that has ensnared several major illegal bookmakers.

By his own admission, Bowyer ran one of the nation’s largest illegal sports betting rings before the FBI raided his Orange County home in October 2023.

In that year, Bowyer accumulated net losses of approximately $13 million, he said this month when interviewed this month on the StraitJacket podcast.

At his peak, Bowyer took action from more than 700 clients, most notably Mizuhara. Mizuhara, the disgraced interpreter, received a 57-month sentence in February for embezzling approximately $17 million from Ohtani.

Along with his own affinity for placing multi-million wagers on sports, Bowyer also bet heavily on numerous table games, according to sources. The bookmaker played high-stakes blackjack at the resort on at least one occasion, multiple sources told iGB.

Efforts to contact Bowyer on Monday were unsuccessful.

Explaining structuring

A violation of the Bank Secrecy Act, structuring is a technique employed by criminals to evade anti-money laundering regulations. Structuring is an integral element in the initial phase of a laundering cycle. In virtually every case, structuring involves breaking a large deposit into smaller tranches to bypass detection.

The Post identified one allegation previously reported by Casino.org. At one point, a Hard Rock employee accepted a $100,000 deposit from a Chinese national. According to reports, the customer apparently lacked the requisite sources of funds to meet AML standards on the island.

Instead, the employee divided the entire sum into 33 separate tranches of around $3,000 each. The practise is a violation of Dominican law against money laundering.

Potential implications in the Big Apple

Hard Rock is among eight applicants bidding for a downstate casino in the New York City metropolitan area. The company is partnering with Mets owner Steve Cohen to bring a multi-billion casino resort to the area surrounding Citi Field. Hard Rock submitted its bid before last month’s deadline.

Hard Rock Metropolitan Park, an $8 billion project, is replete with a live entertainment venue, a convention center, retail areas and a 1,000-room hotel. A spokesman for Hard Rock International did not respond to multiple inquiries from iGB on Monday for comment.

Two other bidders, MGM Resorts and Resorts World, operate subsidiaries that reached settlements with the Nevada Gaming Commission this spring over AML violations. Nevada regulators issued a $10.5 million fine against Resorts World Las Vegas in March, weeks before approving an $8.5 million settlement with MGM Resorts.

The Resorts World Las Vegas settlement pertains to anti-money laundering deficiencies related to dealings with several illegal bookmakers, including Bowyer. The NGC revoked former MGM Grand President Scott Sibella’s license last December.

The penalties against MGM Resorts center on AML failings related to Sibella’s association with Wayne Nix, another illegal bookmaker in the case. After leaving MGM Grand, Sibella joined RWLV in a similar capacity. Resorts World Las Vegas terminated Sibella in Sept. 2023 for numerous violation of company policies.

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.”

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.”

This week: World Pool bets on Royal Ascot were up 10%, controversy continues to dog South Africa’s lottery licence award and Romania has changed its advertising rules.

World Pool up at Royal Ascot

World Pool bet types for Royal Ascot 2025 were up 10% from 2024, rising to HK$1.57 billion ($200 million) for the five days.

Including a record-high on Wednesday of HK$330.7m, the most bet on the second day of the meeting since the inaugural World Pool meeting at Royal Ascot in 2019, turnover was up year-on-year every day.

Turnover at the 2022 meeting remains the highest at HK$1.61 billion, approximately 2% higher than this year’s level. In 2025, punters from across the globe were able to access commingled pools on the event for the seventh consecutive season.

Sam Nati, head of commingling at the HKJC, said: “In terms of quality, quantity and competitiveness, the fields were fantastic all week. There was also some good international representation, both in the horses running and the jockeys taking part, so it was a good mix of key factors for both local and overseas punters.”

Tycoon defends SA lottery link

South African tycoon Moses Tembe has dismissed accusations that a consortium he headed was awarded the country’s next National Lottery licence contract due to political influence.

Concerns have been raised about Sizekhaya Holdings’ links to South African Deputy President Paul Mashatile. Bellamont Gaming, a company owned by Tembe and Mashatile’s wife’s sister, Khumo Bogatsu, has shares in Sizekhaya.

However, Tembe told Times Live that Bellamont has a minimal share of Sizekhaya stock.

Tembe added: “We have indicated previously that Sizekhaya [Holdings] won the right to operate the fourth national lottery licence because of the strength of our bid, the deep knowledge of gaming that we bring to the table, our pledge to propel the lottery to new heights by generating more money for the government, for good causes and for players.”

Romania bans celebs from gambling ads

Romania’s National Audiovisual Council (CNA) has banned celebrities from appearing in gambling promotions.

CNA members unanimously approved the ban during a public session on Thursday.

They amended the Audiovisual Regulatory Code to prohibit celebrity appearances in gambling ads on TV, radio and online platforms.

Romanian outlet PaginaDeMedia published the updated wording of the regulation. The new rule states: “It is prohibited to broadcast gambling ads featuring public, cultural, scientific, or sports personalities.”

Gambling ads previously featured celebrities such as footballers Florin Răducioiu and Ilie Dumitrescu and singers Antonia and Alex Velea.

Kaizen to sponsor CONMEBOL Copa América Femenina 2025

Kaizen Gaming has been named as official sponsor of the CONMEBOL Copa América Femenina 2025.

Hosted in Ecuador in July and August, the tournament will bring together South America’s 10 women’s football teams.

The sponsorship of CONMEBOL Copa América Femenina 2025 is part of Betano and CONMEBOL’s broader partnership, which started with the CONMEBOL Copa América 2024 and extends through 2028.

Alejandro Domínguez, president of CONMEBOL, said: “Having Betano’s support encourages us to continue raising the level of the tournament and to provide more opportunities for our athletes to shine on the field and keep leaving their mark both on and off the pitch.”

F1 and Allwyn launch community award

Formula 1 and lottery operator Allwyn have announced the launch of the F1 Allwyn Global Community Award.

The programme will spotlight community-focused initiatives across the world of Formula 1 to showcase their positive impact on society. As well as global recognition, winning initiatives will each receive a €100,000 donation from Allwyn to further transform communities around the world.

Winners must demonstrate a meaningful contribution to society away from the racetrack, which could include advancements in education, culture, well-being or sustainability. For each race, the local promoter will identify Formula 1-linked community initiatives run by teams, partners and media that have had an impact in their country.

Stefano Domenicali, president and chief executive of Formula 1, said: “We will give the local initiatives that go the extra mile for making their communities and make the world a better place the recognition and global platform they deserve.”

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.

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.

This is despite the new licensing framework coming into force in December, which prohibits the use of licences awarded under the former regime

Under the new rules provisional gambling licences issued through the National Ordinance for Games of Chance (LOK) were due to run for an initial six months to 24 June. However, the CGA will now extend this by another six months for select operators.

The extension applies to both ‘Green Seal B2C’ entities and ‘B2B’ licence holders in Curaçao. Applicable operators will receive their updated licences on or before 27 June.

The CGA said this extension will grant licence-holders additional time to ensure they are fully compliant with rules and regulations in Curaçao. Should this be the case, they will be eligible for a full licence at the end of the extended provisional period.

“Operators licensed by or after 25 December 2024 should be compliant or show significant progress in relation to their issued checklists including additional requirements under LOK during the first six-month period from the date of issuance of their provisional licence,” the CGA said in a statement released on Tuesday

“An extension of up to a maximum of six months, or the issuance of a full licence, will depend on the level of progress demonstrated by the operator.”

Under the new structure, operators and suppliers are required to adhere to much stricter regulatory requirements. Operators must provide a dispute resolution portal to help solve payer disputes and prevent them from progressing to court.

The new licensing system also sought to improve the market’s AML rules and boost its overall reputation as a heavily compliant market.

Rocky road to new regulation in Curaçao

But Curaçao’s journey to its updated regulatory framework has faced challenges.

The LOK was in development since September 2023, when the CGA first established its new licensing window process. An influx of new licence applications in the summer last year, set back the licensing process, as many failed to submit the appropriate documentation in the first stages.

Amid the changes, a host of master licences in Curaçao expired. The CGA opened a licensing window on several occasions to allow B2C, B2B2C and B2B operators to submit applications for new licences.

But an influx of new applications in the summer of last year set back the licensing process, as many failed to submit the appropriate documentation in the first stages.

All this came against a backdrop of corruption reports related to the licensing process. The allegations, which also included fraud and money laundering, came from local politician Luigi Faneyte, a member of the opposition Real Alternative Party.

Fanayte filed a report with the attorney general’s office in November, He claimed gambling licences were issued without legal basis, which in turn led to financial losses.

However, the GCA rejected the allegations, defending what it describes as a “comprehensive licensing process”.

ITIA hands provisional suspensions to Dominican players

The International Tennis Integrity Agency (ITIA) has given provisional suspensions to two players from the Dominican Republic over corruption allegations.

Jossting Cruz and Jasel Beltre have been suspended since 30 May this year. They will remain inactive pending the consideration of charges under the Tennis Anti-Corruption Programme (TACP).

The ITIA said the double suspension is in line with section F.3.b.i.4 of the TACP. This states that there is a “likelihood” the named individual has committed a “major offence”.

Cruz, 19, reached a career-high ITF singles ranking of 2,318 in May 2025, while Beltre, 24, is unranked. Neither player has elected to appeal their provisional suspension.

ICRG welcomes Soll as new president

Elsewhere, the International Centre for Responsible Gaming (ICRG) has appointed Michael Soll as its new president.

Soll will commence his new role on 7 July and replace Arthur Paikowsky, who has led the ICRG since October 2021.

Soll has served on the ICRG board since 2022 and has almost nearly 30 years of gaming industry experience. Most recently, he was president of research and advisory firm The Innovation Group (TIG).

Prior to his time with TIG, he held planning and development roles at Hard Rock International and Caesars Entertainment.

TaDa Gaming lands UK licence

In other news, slots and casino games provider TaDa Gaming has secured a licence from Great Britain’s Gambling Commission.

The approval enables TaDa to work with licensed operators in the British market. This will cover new content such as Fortune Coins, Jackpot Joker and Legacy of Egypt, which will launch at iGB L!VE 2025 in July.

TaDa will also adapt its games for regional audiences. This follows similar, regional releases in other markets including the US and Brazil.

“The UK is a core focus for us,” TaDa Director of Business Development Ray Lee said. “We are excited to connect with new partners ready to benefit from our diverse, glocalised content and powerful engagement solutions.”

SIS pens extension with Greyhound Racing Ireland

Meanwhile, Sports Information Services (SIS) has extended its partnership with Greyhound Racing Ireland.

The three-year deal will see SIS broadcast over 500 races per month from 10 of the country’s leading tracks. Additional venues will also be announced in due course.

The agreement covers major Irish racing events such as the Irish Derby, Kirby Memorial and Winter Racing Festival. In total, operators will be provided with over 24,000 live greyhound races every year.

“Greyhound racing from Ireland has in recent years established itself as a core part of the greyhound coverage for retail and online operators, both in the UK and international markets, and our coverage showcases the very best the nation has to offer,” SIS EMEA Managing Director Paul Witten said.

Bet365 scores Chicago Sky partnership

Finally this week, Bet365 has entered into a partnership with WNBA team the Chicago Sky.

The multi-year deal will see Bet365 become the official sports betting partner of the Chicago Sky.

Bet365 will benefit from a branding presence on behind the basket on the north end of the court, along with the centre pole pad on both home and visiting team baskets. The operator will also receive logo inclusion on in-arena, social media, broadcast and digital promotional marketing products and materials.

Chicago Sky’s Vice President of Corporate Partnerships, Alex Teodosi, said: “We’re thrilled to partner with Bet365 to align with a growing sports trend that brings new visibility to the WNBA and the Chicago Sky.”

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.

Announced on Wednesday, Cirsa’s IPO will involve a primary offering of newly issued ordinary shares, aiming to achieve an equity raise of €400 million to accelerate its growth strategy and strengthen its capital structure.

The IPO will also help fund future M&A plans, as the company expects to continue its bullish acquisition strategy.

Since 2015, Cirsa has completed over 130 acquisitions, including a move to take a 70% stake in leading Peru operator Apuesta Total in 2024, before then entering Portugal by securing a 68% stake in Casino Portugal.

The company is expecting shares to be admitted for trading on Barcelona, Bilbao, Madrid and Valencia stock exchanges, although the definitive date for the submission is subject to factors such as market conditions and approval from the Spanish Securities Market Commission.

Cirsa believes it is well-placed strategically to capitalise on growth opportunities, having achieved EBITDA growth for 67 consecutive quarters, excluding those impacted by Covid-19 (likely 12 quarters between Q1 2020 and Q1 2022).

Cirsa Executive Chairman Joaquim Agut described Wednesday’s announcement as a “significant milestone” for the company, while CEO Antonio Hostench also shared his excitement for the move.

“Today, we are taking a defining step to continue writing another page in this extraordinary history of growth by announcing our intention to go public, which will provide us with the opportunity to undertake new projects and continue to consolidate our leadership in the sector,” Hostench said.

Both Agut and Hostench will retain their Cirsa investments and remain shareholders following the IPO.

Secondary sale of shares planned

A secondary sale of around €60 million in shares will be carried out after the IPO, for the purposes of settling taxes and other expenses linked to the restructuring of management holdings.

The secondary sale will be conducted by LHMC Midco and is solely for the indirect benefit of certain current and former employees, as well as managers. Cirsa stressed management won’t receive any cash proceeds, other than those diverted towards paying taxes and expenses.

Cirsa’s plans also include a customary over-allotment option granted to joint global coordinators Barclays Bank Ireland, Deutsche Bank Aktiengesellschaft and Morgan Stanley Europe.

Cirsa 2025 earnings expectations

Alongside accelerating the company’s growth strategy, Cirsa says the primary offering will repay existing debt, expecting it to reduce the group’s net leverage ratio to around 2.7x.

The company has forecast a 2025 EBITDA range of between €740 million and €750 million. For online operations, it expects EBITDA to come in at slightly higher than 2024.

In the medium term, CIRSA expects net operating revenues in the land-based business to grow in the mid-single-digit area and online gaming to grow by double digits. It is targeting net operating revenues of between €2.28 billion and €2.33 billion by the end of 2025.

It is aiming for its net debt to EBITDA ratio to be between 2.0x to 2.5x post IPO.

In the 2025-2027 period, Cirsa aims to have further capacity for M&A investment with organic cash flow generation of €400-500 million.

Cirsa IPO plans follow on from strong Q1

Rumours of Cirsa’s IPO had been circulating for some time, but the IPO launch confirms its plans to capitalise on its recent strong performance.

Founded in Spain in 1978 and acquired by Blackstone in 2018, Cirsa now holds a presence in 11 countries, including Spain, Panama, Colombia, Peru, Mexico, Costa Rica, the Dominican Republic and more recently Portugal.

In Q1 it recorded a net operating revenue of €576.7 million ($164.5 million), a 12.5% increase when compared to the same quarter last year.

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.”

Illegal horse betting arrests in Singapore and Malaysia

Police in Singapore and Malaysia have arrested 16 people in a joint investigation into a criminal syndicate that carried out illegal horse betting.

Officers from the Singapore Police Force’s Criminal Investigation Department (CID) and Special Operations Command conducted simultaneous raids at multiple locations across Singapore. Some 14 men and one woman were arrested as a result.

Another man was arrested in Malaysia during a raid by the Royal Malaysia Police’s CID. A further 41 people across both countries are also being investigated in connection with the case.

The raids also led police to seize cash, bank accounts and electronic devices such as mobile phones and gambling-related items.

According to The Straits Times, the wider investigation remains ongoing.

Michigan regulator targets five illegal gambling websites

The Michigan Gaming Control Board has issued cease-and-desist letters to a further five gambling websites.

The MGCB said BoVegas Casino, BUSR, Cherry Gold Casino, Lucky Legends and Wager Attack Casino are operating without a licence in a breach of state law.

All five websites offer some form of online casino gaming, while BUSR Wager Attack Casino also runs sports betting.

“We will not tolerate unlicensed gambling operations that exploit Michigan residents,” MGCB Executive Director Henry Williams said. “Our top priority is to protect the public by enforcing the law and shutting down these illegal platforms.”

Maverick partners with Delasport for Ontario launch

In Canada, Maverick Games has partnered with Delasport to launch its sports vertical in Ontario.

Built on Delasport’s technology, Maverick will offer a range of sports betting options to players. It is the second brand to launch with Delasport’s technology in the province.

The launch follows the announcement of SuperPot, a new sports betting jackpot product that will soon be rolled out in Ontario.

“Our sports vertical is a major step forward for us,” Maverick CEO Matt Rathbun said. “Launching it with Delasport has been the right move from day one.”

BetMakers pens Total Performance Data deal

Meanwhile, BetMakers Technology Group has entered a partnership with Total Performance Data (TPD).

Under the deal, BetMakers will distribute TPD’s real-time odds across its network of clients. The service includes in-running coverage of premier UK and US racetracks, as well as Victorian metropolitan racing in Australia.

TPD’s data will be available via BetMakers’ Core API and managed trading services.

“Adding more quality racing product such as this partnership with TPD to the BetMakers network is a win for the industry and our global customer base,” said Joey Carroll, director of business development and partnerships at BetMakers.

Betano scores Club World Cup partnership

And finally this week, Kaizen Gaming’s Betano has struck a partnership with the ongoing Fifa Club World Cup.

Betano become an official partner of the competition for South America. The tournament is taking place in the US from 14 June to 13 July.

Some 32 teams from around the world are featured in this summer’s event. These include Paris Saint-Germain of France, England’s Manchester City and Chelsea and Inter Miami of the US.

“It is a privilege to work closely with Fifa for a tournament that brings together millions of fans from all around the world as they get to watch the best club teams and players football has to offer,” Kaizen Gaming co-founder and CEO George Daskalakis said.

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.”

Nasdaq sent the operator a “staff determination letter” on 16 May notifying Codere Online that it planned to delist the company from the exchange, as it had failed to file its 2024 annual report on time.

But on Friday the operator stated it had received confirmation from the exchange to continue trading, as it had filed its Form 20-F (annual report for foreign companies) for the year 2024 with the SEC on 2 June.

It said: “Codere Online today announced it has received formal notification from the Nasdaq Stock Market LLC confirming that the company has regained compliance with Nasdaq Listing Rule 5250(c)(1) and that the company is therefore in compliance with the Nasdaq Capital Market’s listing requirements. As a result, the company’s securities will continue to be listed and traded on the Nasdaq Capital Market and are no longer subject to a delisting process.”

Last month, the operator had expected to file its 2024 annual report with the SEC on or prior to 30 May.

And a hearing on the potential suspension and delisting of its stock on 22 May had been requested, but that meeting with a Nasdaq panel was cancelled once the report was submitted.

Cause of the delay in filing

Nasdaq first threatened to delist the company in November due to its failure to file a previous annual report for the year ended 31 December 2023.

It was given an extension in in January, requiring Codere Online to file the report by 12 May, and the deadline was met on 1 May.

Codere came out fighting in May and appealed Nasdaq’s delisting notice. It said the delay was related to an audit of the company that took longer than expected, as it was using new independent registered public accounting firm, MaloneBailey LLP, which Codere Online started working with on 31 December.

The change was made after their prior accountant Marcum LLP resigned on 20 December 2024.

Marcum had said it was not able to complete certain audit procedures due to IT control deficiencies, connected to Codere Online’s third-party platforms.

The firm also said there were insufficient controls in place at the company to mitigate those deficiencies.

Codere Online, in its Q1 results, posted net gaming revenue for the three months to 31 March of €57 million ($63.9 million), up 8% on the previous year’s €53 million.

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.”

Cirsa announced its Q1 results on Thursday, displaying net operating revenue of €576.7 million ($164.5 million), a 12.5% increase when compared to the same quarter last year.

Cirsa’s EBITDA also hit €179.8 million, a 9.1% rise from Q1 2024, with the company attributing this increase to successful execution of its strategic plans across multiple operating markets.

Cirsa’s growth was particularly evident in its online gaming and sports betting division, where net revenue rocketed by 54.8% year-on-year to €131.1 million, an increase of €46.4 million.

The segment is Cirsa’s fastest-growing and now accounts for 22.7% of total group net revenue, up from 16.5% in Q1 2024.

Apuesta Total and CasinoPortugal deals expand Cirsa’s horizons

The company said this was driven by full consolidation of two deals, having acquired a 70% stake in Peruvian operator Apuesta Total in July last year, before also entering Portugal after securing a 68% stake in CasinoPortugal.

In terms of EBITDA mix, Spain continues to be Cirsa’s dominant market, accounting for nearly half (49.3%) of its EBITDA total, a 0.6% rise. Second-placed Panama dropped from 13% to 11.8%, but Colombia (9.9%), Italy (8.8%) and the Dominican Republic (3.9%) all increased their share.

Cirsa’s geographical diversification strategy allowed it to offset negative effects from foreign exchange developments.

Total cash availability as of 31 March stood at €567.6 million, up from €549.8 million at the end of 2024.

Mixed results for Cirsa’s casino segment in Q1

Cirsa initiated over 15 renovations and expansions in its casino estate during Q1, with the company demonstrating its dedication to improving the experience for its customers.

The casino segment edged up its net revenue by 0.6% to €238.7 million, despite headwinds of economic slowdown in Mexico and Panama, caused by uncertainty generated by ongoing US government policies.

The casino division’s EBITDA dropped slightly, from €97.3 million in Q1 2024 to €95.5 million in the first quarter of this year.

Cirsa says it will continue to deploy CRM strategies in order to boost the number of visits to its casinos.

Slot growth in Spain and Italy

Cirsa was particularly enthused by the growth in its Spanish slots segment. The operator described increases in net revenue (8.3%) to €108.2 million and EBITDA (17.8%) to €54.5 million as “outstanding”.

The company primarily attributed this growth to the increased net revenue per slot machines, with the number of slot machines slightly growing.

“Our strategy to optimise the pool of slots continues to yield excellent results in terms of increased revenue per slot,” Cirsa explained.

Cirsa’s B2B division continues to lead the Spanish market and the company is looking to capitalise with new game launches.

The business’ slots division is also performing well in nearby Italy, with net revenue up €5.3 million to €103.4 million in Q1, while EBITDA also increased to €8.2 million from the €7.6 million reported in the same quarter last year.

The acquisition of Italian operator Royal contributed to this growth, helping Cirsa to navigate the country’s “complex general market environment”.

Cirsa on course to meet 2025 guidance, IPO still an option

Cirsa stated its geographical diversification has set the company up to meet its 2025 guidance.

The company expects to post overall net revenue growth in the high single digits, with its land-based segment reaching mid-single digit growth and its online business hitting growth of low to mid-20s.

Last year, it was reported Blackstone-owned Cirsa would undergo an IPO in 2025 and this remains part of its plans, the operator said. However the timing is unclear. In February Reuters suggested the IPO would take place in the second quarter, in April, but that date came and went with no development.

“Its execution and more specifically potential dates will depend on market conditions to ensure an optimal valuation of the company,” Cirsa said.

For the three months to 31 March 2025, revenue at the Athens-headquartered gaming technology group reached €94.4 million ($107.1m/£79.5m). This was up 10.9% compared to the same period in 2024. Intralot also saw gross gaming revenue (GGR) grow by 8.3% to €88.5 million.

Lottery games remained the largest moneymaker for Intralot, drawing 55.2% of all revenue during Q1. This was up slightly on the 54.8% share during the 2024 financial year. Sports betting generated 25.0% of total revenue in Q1, video lottery terminals 11.6% and IT products and services 8.2%.

Within revenue per activity line, Intralot’s B2B segment accounted for 88.9% of the total figure. This was slightly down on the 90.2% of FY2024.

Argentina trading conditions continue to improve

Intralot’s best performing business unit remains Technology by some distance, accounting for €61.4 million and 65% of the total. However, this was down from 71% during Q1 2024, with takings up by just €1.0 million. The segment was aided by strong performance in Argentina, upward sales trajectory in Croatia and organic growth in Oceania. However, performance in the US has been impacted by lower activity of multi-state jackpots, Intralot said.

The group’s B2C Licensed Operations, located in Argentina, remains the smallest segment, however it grew by 64.8% year-on-year and now accounts for €10.5 million and 11% of the total. In Q1 2024 it made up just 7% of the total. Intralot said improving macroeconomic conditions in Argentina are supporting market growth. In local currency terms, the results for the current period posted an increase of 106.1% compared to the same period last year.

Game Management was up 22.8% to €22.5 million, now accounting for 24% of the total. The increase was triggered by 61% growth of online sports betting in Turkey, despite the 14.8% devaluation of the Turkish lira.

Intralot’s EBITDA flat during the quarter

Total operating expenses increased slightly by €1.0m (up 3.7%), which Intralot said was necessary to support topline growth. Other operating income came to €7.6m, an increase of 14.2% year-on-year.

EBITDA was almost flat compared to the same period last year, growing by 0.3% to €30.2 million. Intralot said the steady performance “demonstrate[d] the continued resilience of the group’s operations.” While, it added, “robust performance from key markets contributed positively to the overall results”.

Operating cash-flow improved by €21.8m, reaching €48.9m compared to €27.1m in Q1 2024. This increase, Intralot said, was mainly driven by the collection of prior-year receivables.

Chairman Sokratis P Kokkalis welcomed the results and focused on post-period gains. One of those was Intralot recently signing a new six-year agreement with the Department of Internal Affairs (DIA) of New Zealand, he said, which continues a long-term supply deal for an electronic monitoring system (EMS) solution for gaming machines. Meanwhile, in April, the group extended its gaming systems contract with the New Hampshire Lottery Commission for an additional seven years.

“Intralot’s 1Q2025 results are characterised by revenue growth and free cash flow generation combined with stable profitability and continuing debt reduction, resulting in net debt leverage ratio of 2.4x,” Kokkalis explained.

“On the commercial front the company renewed key contracts in New Zealand through 2032 and New Hampshire through 2033, with the latter becoming the first US state to install our new central lottery platform Lotos X with its advanced functionalities.”

No Australian acquisition on the horizon for Intralot

Earlier this month, Intralot rejected speculation it has held talks over a possible acquisition in Australia. Reports in the country suggested it is weighing up a move for Max Gaming, the gaming monitoring arm of Tabcorp.

According to an article in The Australian, Intralot made an initial approach to Tabcorp over a potential purchase. The same article said Max Gaming could be worth up to AU$610 million (€348 million/US$394 million).

Responding to the reports, Intralot said in a statement that no such talks have taken place. “Intralot clarifies that no binding agreement of this kind exists,” it said. “Currently, Intralot is not conducting any negotiations relating to any acquisition in Australia.”

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.”

The in-depth report features exclusive insights from leading licensed operators including Betano, Sportingbet, EstrelaBet and Superbet, alongside commentary from influential stakeholders such as the National Association of Games and Lotteries (ANJL) and Loterj President Hazenclever Lopes Cançado. Their contributions provide a clear view of the regulatory, commercial and operational realities on the ground.

Supported by data and forecasts from H2 Gambling Capital, the report outlines the significant long-term potential of the Brazilian market, which is projected to hit BRL31 billion in online GGR by 2025, growing to BRL64 billion by 2030. It also examines the structural challenges that may impact growth, including ongoing illegal market activity, evolving KYC requirements and other complexities of regulation.

In addition to market sizing and regulatory context, the report places a strong focus on social responsibility, particularly around responsible gambling. With increased scrutiny on player protection and sector perception, licensed operators are actively collaborating with regulators to build a more sustainable and accountable betting ecosystem.

Whether you’re an investor, platform provider, operator or policymaker, A New Era in Brazil provides a data-driven foundation for informed decision-making in one of the most dynamic emerging markets in global gaming.

Download the report now by completing the form below to access exclusive operator insights, regulatory analysis and the data you need to shape your Brazil strategy.