Brazilian iGaming Boom
Brazil has taken off as ‘the place to be’ for new and upcoming iGaming businesses. Interest in Brazil at the Brazilian Lounge in ICE London 2023 proved just that. But what are the reasons behind this sudden influx of iGaming businesses in South America’s largest country, and what can we expect in the future in the heart of the Latin American market?
Brazil has a long history of rich cultural heritage. Sport is a key area of influence on the people of Brazil. Popular sports include futsal, motor racing, basketball, and of course, football. Record-breaking five-time winners of the FIFA World Cup in 1958, 1962, 1970, and 2002, and being the home of football legends such as Pelé, Ronaldo, Ronaldinho, and Neymar (to name just a few!), pretty much cement Brazil as a country that takes sport seriously.
Sports betting with family and friends has always been part of Brazilian life, with friends getting together to enjoy their favourite teams and events. And it’s from this that the current soar in iGaming grew.
Brazil is a nation of about 217 million people with a 3% annual growth rate since 2010. There are close to one million active players online, which is an increase of 24% in just a year. The market is set to hit a total value of R$20 billion by 2025. It seems Brazil’s iGaming time has arrived.
Gambling law in Brazil has changed considerably in recent years. Previously, tight restrictions meant that only certain activities, such as lotteries and horse betting were allowed. This later developed with the legalisation of bingo and slot machines in the early 90s. Several changes subsequently took place with regulations changing to provide financial gain for sectors such as sports.
Since changes in sports betting legislation came into force in 2018, more officials are now championing the increase in sports betting in Brazil. A new initiative to regulate Brazil's gambling industry led to the creation of the Brazilian Institute of Responsible Gaming (IBJR). Brazil has worked hard to establish itself as a safe and rewarding market for potential players and businesses, seizing the chance to capitalise on a growing market. The inception of Associação Brasileira de Defesa da Integridade do Esporte (Abradie) sports integrity body is good news for everyone in the world of iGaming and the potential growth of the Brazilian market.
Between December 1st 2022 and March 24th 2023, a survey was conducted of elected parliamentarians on the regulations of gambling. Roughly 65% responded to the survey with 38% in favour of regulating gambling in Brazil.
Recently, the Brazilian Ministry of Finance and representatives of the National Association of Games and Lotteries (ANJL) met to discuss the regulation of online sports betting with an announcement expected in April 2023. If PL Nº 1822/2023 gets approved, it is likely that Brazilian iGaming will continue to steadily grow.
The last five years show massive financial growth in iGaming and increased transparency of sports betting advertising at top-level events and leagues.
Pedro Duarte, a councillor in Rio de Janeiro, recently gave instructions on preparations needed for cities to receive bookmakers. Currently worth in the region of R$12 billion a year in Brazil, the success is easy to see with each of the twenty clubs in Serie A of the Brasileirão having some form of sponsorship from the sector.
The Associação Brasileira de Defesa da Integrida do Esporte (Abradie), the National Futsal League (LNF), and the National Basketball League (LNB) announced their partnership to uphold the integrity of Brazilian sport and Brazilian sports betting. The LNF and LNB bring together two of the nation’s leading sports industries to work with Abradie. It’s an important step in legitimising sports betting in Brazil as more businesses will see the partnership as proof of the robust and thorough stance Brazil is taking in the sports betting world. The LNB and LNF join the founding members of ABRADIE – Rei Do Pitaco, Bichara e Motta, Maia Yoshiyasu Advogados (FYMSA) Genius Sports, and Entain on this promising initiative.
Fernando Haddad, a Brazilian academic and the Brazilian Minister of Finance, has further increased interest with talks of how cities can benefit from gambling. Currently, São Paulo is leagues ahead of Rio being the hub for the technical iGaming community. It’s known for being one of the most luxurious cities on the globe with a bustling nightlife and a shopping magnet for the rich and famous. However, Rio de Janeiro, known for its artistic paradise of beautiful beaches, sports and arts culture, has plans to take over the helm with talks at City Hall between key people in power and the betting sector.
Representatives from the segment shared data with the Brazilian Ministry of Finance this March that showed sports betting in the country now moves around BRL 100 billion per year. Wesley Cardia, CEO of ANJL (National Association of Games and Lotteries), said, “Companies will feel safe to work. The regulation will bring order to the market, it will say who is able to work in Brazil. This is what we want.” Not only is this great news for the Brazilian economy by boosting businesses and creating more jobs, but it is also great news for companies looking to expand their iGaming business into Brazil.
Brazil is also one of the main markets that have continued to grow in the eSports sector, making it more attractive now than ever before for potential eSports businesses. And events such as the World Cup, highlight the need for Brazil to take hold of the potential to be a front-runner in this exciting industry.
The future is bright for Brazilian iGaming businesses. As the rise in interest grows and regulations get finalised, the establishment of a secure and appealing iGaming community is a certainty. There has never been a better time to get into Brazil.
If you want to know more about how we can help you start up your own Brazilian iGaming business or expand your current brand with our platforms solutions, get in touch with us via email at: email@example.com