Fixed-odds online sports betting has taken off in Brazil like a space rocket to the iGaming universe, writes iGF Brazil special correspondent Jordi Bacardi.
In less than a year the South American country has become one of the largest betting markets in the world, with projected income similar to countries that have long been in the business like Spain and the Netherlands.
Online betting began in Brazil in 2018 but was only regulated last year, forcing companies to have a base in the country and register as a legitimate business.
The deadline to register was August 20, and there was a rush to sign up.
Among the big international names that asked to register was MGM Resorts, which announced a joint venture with Brazil’s largest media empire, the Globo group; SportingBet, from the Entain group: Betfair, from the Flutter Entertainment group; Sweden’s Betsson and Caesars Sportsbook.
The Finance Ministry’s Secretaria de Premios e Apostas, which oversees betting in Brazil, said 113 registration requests were formalised by companies that want to operate in Brazil. Unlicensed companies will be penalised as of January 1.
“It is certainly a new and long awaited phase,” said Leonardo Benites, CEO of Propane iGaming Agency.
Brands Alive
“We believe in a market that is regulated, where companies are free to invest by declaring their revenues and paying their taxes,” he added.
Companies authorized by the government to operate in Brazil will be able to adopt the bet.br domain for their brands.
Since each authorisation gives companies the right to explore up to three betting brands, there could be more than 300 brands operating in Brazil.
With Brazil’s active betting population exceeding 20 million and an estimated market size of over US$3 billion (£2.27bn), growing annually in double digits,
If all 113 requests are granted, the equivalent of US$3.4 billion (£2.27bn) will flow into the Brazilian Treasury by the end of the year in payment for the right to operate in Brazil, not counting various taxes collected on bets.
At present, Brazil’s government has no idea who is operating bets in Brazil and is not collecting taxes on bets.
“The period without rules is ending. The market has understood there is only one way to operate in Brazil: complying with the law and rules, respecting people and with the Ministry of Finance’s authorisation,” betting Secretary Regis Dudena said in a statement.
The National Association of Games and Lotteries estimates regulated betting will have a tax burden of between 32 percent and 36 percent, and could generate 100,000 direct and indirect jobs over five-years in a market that will generate 25 billion reais a year (£3.37bn).
Betting Pa Ti
Brazilians love betting.
In fact, Brazil is undergoing a betting epidemic now, according to research by Instituto Locomotiva that found 25 million Brazilians started betting in the last six-months, encouraged by widespread advertising.
The research institute found that 52 percent of Brazilians bet to make money, 22 percent just play for fun, another 10 percent bet for the adrenaline rush and 13 percent say they do it to pass the time or out of curiosity.
One third said they lost more than they won, but 37 percent said they won more than they lost betting.
Brazilian bettors lost, on balance, 23.9 billion reais (£3.22bn) in the 12 months from June 2023 to June 2024, on bets worth 68.2 billion reais (£9.2bn), according to a study by economists at Itau Bank.
