Brazil Regulated Betting Market Posts BRL 37 Billion in First Year

Brazil's regulated online betting market completed its first full calendar year on 31 December 2025 with gross gaming revenue of BRL 37 billion (approximately USD 7 billion), comfortably surpassing initial forecasts of BRL 31 billion. The Secretariat of Prizes and Bets released its annual data in early 2026, confirming 78 licensed operators running 138 brands. Whether those numbers represent success depends on how seriously you take the parallel illegal market.

Revenue and enforcement in year one

Law No. 14,790/2023, known as the Lei das Apostas, created Brazil's federal licensing framework for fixed-odds betting and online casino games. The Secretariat of Prizes and Bets (SPA), a department within the Ministry of Finance, began accepting applications through the SIGAP system in 2024. Licensed operations went live on 1 January 2025, with each five-year license carrying a BRL 30 million fee (approximately USD 6.1 million).

Over the year, 25.2 million Brazilians placed at least one bet on licensed platforms, roughly 11.8% of the population. Men accounted for 68.3% of bettors. The 31-to-40 age bracket made up the largest segment at 28.6%, with 18-to-24-year-olds close behind at 22.7%. The Federal Revenue Service collected close to BRL 10 billion in tax revenue from the sector, with operators paying 12% of GGR plus standard corporate taxes. Licensed operators also contributed BRL 2.5 billion in license fees and BRL 95.5 million in inspection fees.

On enforcement, the SPA coordinated with telecommunications regulator Anatel to block over 25,000 unauthorized betting websites. Ordinance No. 566, enacted on 21 March 2025, mandated financial institutions and payment providers to monitor, report, and block transactions tied to unlicensed operators. By year-end, 54 financial institutions had filed 1,255 reports covering 1,687 individuals, resulting in 550 bank accounts being closed. The SPA also concluded 412 inspection processes against social media influencers promoting unlicensed platforms, removing 324 profiles and 229 publications.

The illegal market is the real test

Licensed operators and industry groups estimate that unlicensed operators still hold up to 50% of the total market. SPA Secretary Regis Dudena has framed the regulatory trajectory in phases: 2024 for rule-setting, 2025 for monitoring and enforcement, 2026 for refinement. A gradual GGR tax increase is already scheduled, rising to 13% in 2026, 14% in 2027, and 15% in 2028.

Channelization, the share of total betting activity flowing through licensed operators, is the metric that will determine whether regulation succeeded. Industry consensus puts the target above 70%. One expert quoted at the ICE conference noted: "If our channelisation is lower than 60% within the next two to three years, I would say there was a failure." With the illegal market still capturing roughly half of all activity, Brazil's next enforcement push will need to be substantially more aggressive than 2025's efforts. The SPA's 2026 agenda focuses on tightening self-exclusion APIs, expanding SIGAP reporting capabilities, and running successive public consultations on outstanding technical standards.