The regulation of the betting market in Brazil, consolidated with the enactment of Law 14,790 in December 2023, marked the beginning of a new chapter for the iGaming sector—a term that refers to all betting activities conducted on online platforms. The measure established clearer rules and spurred the growth of a previously limited and informal market. In addition to opening new opportunities for companies and players, the regulation strengthens legal security, boosting user confidence and attracting investments.
Although this action has taken an important step in structuring the sector in Brazil, some significant challenges remain. One of the main issues is the illegal betting market. It still represents a considerable portion of the industry, moving around R$ 8 billion per month, according to estimates from the Central Bank, without contributing the taxes generated by a formalized market. This situation harms tax revenue and hinders the full realization of the sector’s potential in the country.
For Marlon Tseng, CEO of Pagsmile, a payment gateway specializing in solutions that connect businesses to emerging markets, ‘the legalization and regulation of iGaming in Brazil pave the way for sustainable growth. Beyond tax revenue, legal security encourages investments and the arrival of new operators, consolidating a more competitive and trustworthy sector for consumers.’
A survey by the International Betting Integrity Association (IBIA) indicates that Brazil’s licensed sports betting market could generate $34 billion in revenue by 2028—a sign of the sector’s growth potential under the new regulation. In 2024 alone, according to the Central Bank, the monthly volume of betting transfers ranged between R$ 18 billion and R$ 21 billion.
Moreover, according to other estimates from the Central Bank, Brazilians spent around R$ 20 billion on online bets in September 2024 (including the R$ 8 billion moved by illegal companies, which failed to generate R$ 30 million in operating fees for the government).
Marlon emphasizes that, with a more structured environment, the betting sector becomes more attractive to investors and operators. He explains that a regulated market benefits not only companies but the entire economy, creating an environment where transparency and compliance with laws ensure the sector’s strengthening and attract more investors interested in participating in a solid and ethical market.
‘This new scenario fosters innovation in business models and requires platforms to adapt to legal requirements, driving the entry of new players and the professionalization of the sector, positioning Brazil as one of the most promising destinations for betting in Latin America,’ he concludes.
