The regulation of the betting market in Brazil, consolidated with the enactment of Law 14.790 in December 2023, opened a new chapter for the iGaming sector—a term that refers to all betting-based activities 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, the regulation strengthens legal certainty, increasing user confidence and attracting investment.
Although this action represented an important step toward structuring the sector in Brazil, some significant challenges remain. One of the main ones is the illegal betting market. It continues to represent a significant portion of the sector, generating approximately R$8 billion per month, according to Central Bank estimates, without the tax contributions generated by a formalized market. This situation harms tax collection and hinders the full exploitation 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 paves the way for sustainable growth. In addition to tax revenue, legal certainty encourages investment 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 the Brazilian licensed sports betting market could generate US$34 billion in revenue by 2028—an indication of the sector's growth potential under the new regulations. In 2024 alone, according to the Central Bank, the monthly volume of betting transfers 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 gambling 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 legal compliance ensure the sector's strength 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.
