Game change: Predictions for the iGaming market after regulation at bookmakers

The regulation of the betting market in Brazil, consolidated with the sanction of Law 14,790, in December 2023, inaugurated a chapter for the iGaming sector (a term that refers to all activities based on bets that occur on online platforms. The measure established clearer rules and boosted the growth of a previously limited and informal market. In addition to opening new opportunities for companies and players, regulation strengthens legal certainty, increasing user confidence and attracting investments.

Although this action has taken an important step to structure the segment in Brazil, some significant challenges still persist. One of the main is the illegal betting market. It continues to represent a considerable portion of the sector, moving about R$ 8 billion per month, according to the Central Bank estimate, without the tax contribution generated by a formalized market. This situation undermines tax collection and hinders the full use of the potential of the sector in the country.

For Marlon Tseng, CEO of Pagsmile, payment gateway specialized in solutions that connect businesses to emerging markets, “a legalization and regulation of iGaming in Brazil pave the way for sustainable growth.In addition to tax collection, legal certainty stimulates investments and the arrival of new operators, consolidating a more competitive and reliable sector for” consumers.

A survey by the International Association of Betting Integrity (IBIA) points out that the Brazilian market for licensed sports betting can generate US$ 34 billion in revenue by 2028 % of the potential growth of the sector under the new regulation.Only in 2024, according to the Central Bank, the monthly volume of transfers for bets ranged between R$ 18 billion and R$ 21 billion.

In addition, according to other Central Bank estimates, Brazilians spent about R$ 20 billion on online betting in September 2024 (including those R$ 8 billion handled by illegal companies, which no longer generate R$ 30 million to the government in running rates). 

Marlon stresses 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 strengthening of the sector and attract more investors interested in participating in a solid and ethical market. 

“This new scenario favors innovation in business models and requires platforms to adapt to legal requirements, boosting 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.