The Brazilian gambling market: overview, expert opinion and future prospects

In 2023, Brazil, the world’s most promising new gambling market, changed its nickname from “sleeping giant” to “dreamland for gambling operators.” Slot egrator Experts and media partners shared their key insights about this exciting new market.

Brazil caused quite a stir at the end of 2023 when the country finally regulated online sports betting – and, somewhat unexpectedly, casino games. The approval follows the adoption of Bill 3,626/2023 of 2018, which legalized sports betting but did not provide for regulations. Ultimately, the regulations were approved after a heated debate in a plenary session of the Chamber of Deputies.

Revenue from the Brazilian sports betting and online casino market is forecast to exceed 100 billion Brazilian reals ($200.4 million) over the next three years. This revenue, expected to be generated primarily from tourism, is one of the reasons why so many online casino and sports betting operators are considering investing in the country’s gambling market.

Flavio Figueiredo, Founder and CEO of the media company iGaming Brazil, Slotegrator’s media partner comments: “During this long regulatory process, there have been several changes, several draft laws, and in my opinion there are still points that need to be improved, but the most important thing at this moment is to regulate, to bet ball in play and address needs as they arise. Working in a regulated market brings much more security to the companies operating in this sector and credibility to the bettor.”

As a promising market where operators would do their best to get started now and be ready for any possible changes in the future, Brazil is perfectly suited for modern platform software with maximum flexibility and a unified back officeHow The turnkey solution from Slotegrator. The platform has a number of powerful modules, including the ability to customize multiple front ends – perfect for a multi-market project.

Ayvar Gabidullin, Business Development Manager at Slotegratorsaid that it is an advanced solution for operators who have a strong desire to operate in this market but want to avoid exorbitant investments in a market that is completely new to them.

Slotegrator experts also note the increasing interest in mobile games. which is no surprise given the country’s communications infrastructure; with 81% internet penetration With 99 out of 100 citizens using a mobile connection, there is hardly a Brazilian who does not have some form of access to the Internet, and they probably do so via a mobile phone.

When localizing a platform, it is important to consider all regulations, including those related to advertising. “Brazil has a market with an annual forecast of 100 billion BRL (approximately 18.5 billion euros), which would be a goldmine in any field of activity. No wonder the world is keeping an eye on the country. The forecast is that these numbers will do so.” “For example, with the regulated market and even more aggressive advertising, we will grow even more,” emphasizes Figueiredo, Founder and CEO of iGaming Brazil.

The changes not only had an impact on the regulatory framework; Advertising was also in the spotlight. The Gambling Act 2023 also provides regulations for gambling promotions. Its framework includes:

  • Rules for communication, advertising and marketing, which are primarily committed to self-government.

  • Mandatory inclusion of warnings about the dangers of sponsored activities.

  • Prohibit misleading advertising, endorsement of unlicensed brands, or false benefits.

  • Clear ban on targeted advertising to minors (e.g. advertising in educational institutions) and requirements for appropriate age group identification.

What do operators need to consider before entering the market? Here we turn to the comments from Fernando Saffores, Founder and head of the media company Focus Gaming, Slotegrator media partners:

“Let’s break down both questions into different topic areas:

  • Legal framework: Assess the clarity and completeness of the regulatory framework. Evaluate how well it addresses important issues such as licensing, taxation and consumer protection.

  • Enforcement mechanisms: Examine the effectiveness of the Supervisory Body (SPA) and its sub-secretariats. Assess their capabilities to monitor, prevent money laundering, ensure compliance and promote responsible gambling.

  • Cooperation: Investigate cooperation between the SPA and the Ministry of Sports. This partnership is critical to maintaining sporting integrity and its effectiveness will impact the overall success of the regulatory framework.

  • Operator interest: Consider the interest of the operators. High interest may indicate trust in the market, but it is important to monitor how these operators contribute to responsible gambling and regulatory compliance.”

And a little about the expectations for the Brazilian market. What should operators prepare for?

Saffores believes it is important to note that the market’s success depends on effective implementation, ongoing monitoring and adaptability to challenges that may arise. In his opinion, there must be international comparisons: “Look at the experiences of other countries with similar regulatory frameworks. Evaluate how these markets have performed, what challenges they have faced and what lessons have been learned.”

Saffores also mentions economic impact: “Analyze the potential economic impact of the regulated market, including tax revenue generated and job creation. Evaluate whether the framework supports sustainable economic development.”

Slotegrator experts recommend paying attention to the need to educate the Brazilian population about how the market is developing and what can and cannot be done so that the market does everything right from the start.

Slotegrator Academy experts have also created special infographics that cover six things you should know before opening an online sportsbook or casino in Brazil. You can download it Here.

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