Licensing and compliance
Brazil is taking a bold step to regulate its booming online gambling industry. The Secretariat of Prizes and Betting (SPA), part of the Ministry of Finance, has announced a crucial requirement for companies looking to operate legally in the market: a licensing fee of R$30 million (about $5.2 million), payable within 30 days. This payment is non-negotiable and necessary to secure an operational license in the newly regulated sector.
Major industry names like Entain (known for Sportingbet), Betsson, Flutter, Rei do Pitaco, MGM LeoVegas, Betnacional, Mr. Jack, PagBet, and Kaizen (operating locally as Betano) have already received notices about this mandate.
The SPA has made it clear—failure to provide proof of payment within the deadline will result in the permanent dismissal of an operator’s application, with no exceptions or extensions.
This move underscores the Brazilian government’s commitment to a tightly regulated market that prioritises transparency and accountability.
Beyond the licensing fee, operators must also prove they have equivalent paid-up share capital and provide documentation confirming the legitimate origin of their funds. These strict conditions are designed to filter out any operators who fail to meet Brazil’s high financial and regulatory standards.
For companies that don’t comply, the consequences are severe: their applications will be permanently archived, cutting them off from one of the most promising online gambling markets in the world.
With the regulated market set to launch on 1 January 2025, this is a pivotal moment in Brazil’s efforts to build a fair and transparent gambling ecosystem.
By enforcing these requirements, the government is laying the groundwork for a future where only financially sound and fully compliant operators can participate—setting the tone for the industry’s evolution in the country.
Market landscape
As of November 2024, Brazil’s betting market features 219 authorised platforms operated by 100 different companies. However, change is on the horizon.
One notable development is Betway’s decision to exit the Brazilian market, effective 13 December 2024. The timing is significant—just weeks before the new regulatory framework is set to launch.
Betway’s departure underscores the growing pressures and challenges in navigating the country’s upcoming strict regulatory requirements.
Meanwhile, Superbet Brasil, a prominent sponsor of São Paulo and Fluminense football clubs, has taken a different path. The operator has become the first to secure official regulatory approval by paying the required R$30 million (approximately $5.2 million) concession fee mandated by the Brazilian government.
This early compliance places Superbet in a strong position to capitalize on the newly regulated market. By moving proactively, the company has set itself apart in an increasingly competitive environment.
Regulatory crackdown
The Ministry of Finance has ordered the blocking of 1,812 additional unlicensed gambling domains, pushing the total number of blocked sites to over 5,000.
As the regulatory launch date approaches, the message is clear: only those willing to meet Brazil’s stringent requirements will be allowed to participate.Consumer protection measures
November 2024 brought critical advancements in consumer protection as Brazil moved closer to launching its regulated gambling market.
The Federal Supreme Court (STF) issued a unanimous ruling that enforces two key restrictions:
- • A ban on using social welfare funds for betting
- • A prohibition on gambling advertisements aimed at minors.
In parallel, the National Consumer Secretariat (SENACON) implemented stringent measures to regulate promotional activities.
The agency banned bonus promotions, such as registration offers, before the market’s official launch. Any operator found violating this rule could face hefty daily fines of R$50,000 (approximately $8,300).
The Supreme Court also mandated immediate updates to gambling regulations. These changes reinforce the prohibition of using social benefits for betting and impose stricter guidelines to prevent gambling-related advertising from targeting minors.
Industry response and challenges
The iGaming sector in Brazil has largely welcomed recent consumer protection measures. The National Association of Games and Lotteries (ANJL) has described these steps as “positive and necessary,” reflecting the industry’s commitment to responsible gambling practices.
However, the sector is confronting significant challenges. A notable concern is a legal action initiated by Brazil’s Attorney General, questioning the constitutionality of the current regulatory framework for online betting. This development introduces uncertainty for operators and could potentially delay the implementation of the new regulations.
Government oversight
The Brazilian government is stepping up its efforts to regulate the gambling industry. Central to this initiative is the SPA, a newly established body tasked with overseeing all betting activities.
During this transitional period, the SPA has introduced a detailed set of rules designed to guide operators and ensure compliance with national standards. These regulations are aimed at achieving three key objectives:
- • Promoting fair competition among operators
- • Protecting consumers from potential harm
- • Guaranteeing that gaming companies make appropriate tax contributions to the state.
What do the November 2024 market metrics show?
According to Blask:
- • Average monthly eGGR: $84m
- • Average monthly eFTD: 5.6m
- • Total active users: 184m, according to Blask Index
- • Daily active users: ranging from 4m to 8.9m, according to Blask Index
- • Peak daily activity: November 9 (8.9m users), according to Blask Index
Who were the market leaders in November 2024?
Top 5 operators by Relative Market Share in November 2024 according to Blask:
- 1. Betano: 16.83% (Blask Index: 31m)
- 2. Bet365: 8.53% (Blask Index: 16m)
- 3. Esportes da Sorte: 8.02% (Blask Index: 15m)
- 4. Betnacional: 7.75% (Blask Index: 14m)
- 5. Sportingbet: 6.81% (Blask Index: 13m)
Comparison of November 2024 vs October 2024 market performance
Key Metric Changes:
- • Average monthly eGGR: -4.5% (from $88m to $84m)
- • Average monthly eFTD: -31.7% (from 8.2m to 5.6m)
- • Total active users: -11.5% (from 208m to 184m)
- • Peak daily activity: -11% (from 10m to 8.9m users)
- • Daily active users range: Decreased from 6.6m-10m to 4m-8.9m
Relative Market Share Changes:
- • Betano: -4.4% (from 17.61% to 16.83%)
- • Bet365: -9.3% (from 9.40% to 8.53%)
- • Esportes da Sorte: -9.4% (from 8.85% to 8.02%)
- • Betnacional: +5.2% (from 7.37% to 7.75%)
- • Sportingbet: -0.7% (from 6.86% to 6.81%)
Overall Market Analysis
General downward trend across most metrics
- • The most significant decline in eFTD (-31.7%)
- • Betnacional was the only operator showing positive growth
- • Daily user engagement showed substantial deterioration
- • Market leader Betano maintained a dominant position despite the decline
Looking ahead
As the launch of Brazil’s regulated iGaming market approaches, the industry is undergoing rapid change.
The government has taken a proactive approach, combining comprehensive regulations with strict measures to crack down on illegal operators. This effort aims to create a well-structured and transparent gambling market, but its ultimate success will hinge on the effectiveness of enforcement in the critical months ahead.
The shift from a largely unregulated “grey” market to a fully regulated industry marks a turning point not only for Brazil but for Latin America as a whole. This transition highlights the country’s commitment to modernizing its gambling policies, setting a precedent for the region.
As industry stakeholders adapt to the complexities of Brazil’s new regulatory framework, the global iGaming community is watching closely. The success or failure of this initiative could significantly influence the future of gambling policy across emerging markets worldwide.
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About Blask: Founded by visionaries Dmitry Belianin and Max Tesla, Blask is changing the landscape of iGaming analytics. Blask’s mission is to provide cutting-edge, data-driven solutions so market leaders can make quick, informed decisions.
