Sports betting in Brazil is coming out of the shadows, and it’s time to shine a spotlight on the opportunities for operators to get in on the action.
There has always been an appetite for gambling in Brazil, but laws introduced in the 1940s outlawed it. Progress toward relaxing those strict rules has been slow, but authorities are now recognizing the appeal of valuable revenue streams to help boost the economy.
With growing internet access and a sports-obsessed population, the potential for a Brazilian betting boom is clear. State lotteries and betting shops linked to horse racing tracks provided limited betting opportunities in the past, but the turnover they generate pales in comparison to the potential of the new era of legal online betting.
What has changed?
While the North American betting gold rush has captured a lot of attention in recent years, the Brazilian market appears equally ready to take off following the introduction of new regulations.
Sports betting was legalized in 2018, but the real game-changer came in July 2023 when Brazilian President Lula da Silva issued a provisional decree to regulate sports betting websites. That bill was passed by the Brazilian Senate on a Tuesday, and while some hurdles remain before it becomes law, there is clearly strong momentum for change at all levels of government—and among the public.
Not all forms of betting are being legalized. Bingo halls remain banned, and interactive gaming is still unregulated. But a revolution in sports betting is coming that may rival the developments seen in the United States.
Who will be negatively impacted?
The new regulations pose challenges for offshore betting website operators who have previously tapped into Brazil’s massive demand. Despite the risk of legal repercussions, many operators have sought to benefit from this market, but the lack of regulations has exposed both users and businesses to risk.
These operators' revenue streams are expected to dry up as the government enforces new rules determining who can operate within Brazil. Any party looking to participate will need to pay licensing fees and taxes on their profits.
What are the opportunities?
For those looking to play by the rules, the potential is enormous. Brazil’s population of over 216 million ranks it seventh in the world, and the nation’s passion for sports—especially soccer—is virtually unmatched.
Sports betting turnover is forecasted to exceed R$65 billion (about €12 billion) in 2024 and more than double by 2025.
Onshore betting accounted for around 13.5% of Brazil’s total market in 2023. That figure is expected to rise to more than 50% in 2024 and reach 94% by 2025.
Who are the market leaders?
The race for market share is already underway, and the betting landscape is shifting rapidly. Bet365 has long led the way, but its market share is expected to have fallen from a peak of 66.8% in 2020 to below 38% in 2023.
Sportingbet was the second-largest operator in recent years but saw its market share drop from nearly 12% two years ago to an estimated 8% in 2023.
Newcomers are entering the scene. Betano—recently named an official sponsor of Euro 2024—demonstrated Brazil’s market potential by capturing an estimated 14.6% share in just three years.
Blaze is another rising player. The brand has become a sponsor of Brazilian football club Santos and has signed a four-year global partnership with Neymar as their ambassador.
Having only entered the market in 2021, Blaze is estimated to have earned a 4.4% market share by 2023.
How can operators get involved?
There is clearly strong potential for new entrants in Brazil, but with government regulations still being finalized, working with reliable software providers is essential.
Altenar’s team of experts brings proven knowledge and experience in South American markets and can help optimize sportsbook performance while ensuring compliance with new laws.
