The regulation of the betting market in Brazil, consolidated with the sanction of Law 14,790 in December 2023, opened a new chapter for the iGaming sector — a term that refers to all betting activities that take place 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 towards structuring the segment in Brazil, some significant challenges still persist. One of the main ones is the illegal betting market. It continues to represent a considerable portion of the sector, moving around R$ 8 billion per month, according to the Central Bank's estimate, without the tax contribution generated by a formalized market. This situation harms tax revenue and hinders the full utilization of the sector's potential in the country.
To Marlon Tseng, CEO ofPagsmile, a payment gateway specializing in solutions that connect businesses to emerging markets, “the legalization and regulation of iGaming in Brazil paves the way for sustainable growth. In addition to tax collection, legal security encourages investments and the arrival of new operators, consolidating a more competitive and reliable sector for consumers”.
A survey by the International Betting Integrity Association (IBIA) indicates that the licensed Brazilian sports betting market could generate $34 billion in revenue by 2028 — an indication of the sector's growth potential under the new regulation. Only in 2024, according to the Central Bank, the monthly volume of transfers for betting ranged between R$ 18 billion and R$ 21 billion.
Furthermore, according to other estimates from the Central Bank, Brazilians spent around R$ 20 billion on online betting in September 2024 (including the R$ 8 billion handled by illegal companies, which failed to generate R$ 30 million in government operating taxes).
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 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, 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.
