The iGaming industry is one of the fastest growing in Brazil and the world. According to data from Jornal do Brasil , online betting was legalized in the country in 2018, however, the government only began working on effective regulation from 2023. However, lawyer and CEO of NossaBet, Luciana Macorin de Azevedo, clarifies that the application process actually began on May 21, 2024, when Ordinance No. 827 of the Ministry of Finance was published, in conjunction with the Federal Government’s Betting and Prizes Secretariat.
The significant growth of the sector was driven by a series of factors combined with the market regulation movement, such as the increase in digital connectivity, the growing interest in sports betting and the popularization of the market linked to marketing and sales strategies with national scope associated with football teams.
There has been a steady growth in revenue generated by the market, indicating a significant expansion of the iGaming sector in the country. A series of factors justify this growth, however some points are crucial for the real understanding of the prosperous scenario experienced today:
Regulation
Ordinance No. 827 indicates the rules and conditions required to obtain authorization for commercial exploitation of the fixed-odds lottery modality in Brazil. Based on it, some requirements are indispensable to obtain the license, such as: legal qualification, tax and labor regularity, suitability, economic-financial qualification and technical qualification, as pointed out by lawyer and CEO of NossaBet Luciana Macorin.
Furthermore, the Brazilian government continues to discuss regulatory frameworks for online gaming, seeking a balance between tax collection and consumer protection.
Market Growth
Brazil is popularly known as the country of football, which makes its population passionate about the sport, characterizing it as one of the largest markets in Latin America and with the largest population whose consumption habits are ideal for the expansion of the iGaming market.
Consumer Preferences
The popularity of sporting events such as the Brazilian Championship, Libertadores, as well as regional and international championships of countless modalities are a driving force for the betting market, for example. As soon as sports betting, online casino games such as poker, roulette, and slots, as well as virtual sports and eSports are already part of the daily lives of most of the Brazilian population.
Technology and Access
Another interesting piece of data comes from research published by the CNN Brasil portal, showing that the percentage of homes connected to the internet in Brazil rose from 80% to 84% between 2022 and 2023. Parallel to this, we have the increase in the acquisition and daily use of smartphones, two factors that together facilitate access to iGaming services, leading more and more Brazilians to seek online leisure options, including betting and games.
Challenges
After the sector is fully regulated, a considerable challenge is linked to illegal operators, who still operate in the market, representing unfair competition and risks for consumers.
Opportunities
The opportunities are endless, supported with robust regulation, Brazil has the potential to become one of the largest iGaming markets in the world and the entry of large operators combined with the development of local partnerships, as is the case with Salsa, can accelerate the growth and professionalization of the market.
Furthermore, it is important to highlight the main economic contributions of the iGaming market to the country, which are revenue generation, creation of new jobs and expansion of tourism. Brazil has invested significantly in the areas of technology and telecommunications in order to strengthen its communications infrastructure, with a focus on high-speed internet and data centers. These improvements not only benefit the economy, as by improving connectivity and technological capabilities, other sectors are also boosted.
The iGaming industry, in turn, drives consumption, with the increase in Brazilians’ participation in online gaming. This generates expenses that benefit several companies, such as payment processors and advertising agencies, further stimulating the economy.
The future of iGaming in Brazil is bright, with huge opportunities for growth and innovation. Companies that quickly adapt to local preferences and take advantage of the latest technologies will be well-positioned to capture a significant share of this growing market. Want to learn more about how our technology can help your business stand out in the Brazilian iGaming market? Contact us today!
Flávia Izidoro
