Brazil officially launched online gambling regulation on January 1, 2025, ending years of market chaos, and now it has been a full year since the regulation took effect. During this period, licensed operators quickly adapted to compliance requirements, and the market size has steadily expanded, but issues such as the illegal market and tax reform disputes remain to be resolved. Relevant Latin American gambling regulation cases can be queried through the PASA official website.
Regulatory Effectiveness: Operators Comply and Adapt, Market Expands
The speed of operators' adaptation exceeded expectations! At the beginning of the regulation, only 14 operators obtained full licenses, and now more than 80 have received federal authorization. The industry has made significant investments in technology, compliance, and talent, moving from an informal status towards a mature and professional state. The initial KYC process indeed caused headaches for many players, but as user awareness increased and tools were optimized, the friction in registration during the first two or three months has been significantly alleviated, making the verification process faster and more intuitive now.
Core Challenges: Illegal Market Dominance and Tax Policy Pressure
The "tough nut" of the illegal market has not yet been cracked! Currently, illegal operators still occupy 41% to 51% of the market share. Although telecom operators have blocked over 18,000 illegal websites, blocking financial channels is key, and the effectiveness of collaboration between the regulatory layer and the central bank is not yet clear. Meanwhile, tax reform disputes continue, with the government planning to gradually increase the GGR tax rate from 12% to 15% between 2026 and 2028, and there is also a proposal for a 15% CIDE-Bets tax on player deposits, which could severely impact the compliance market's diversion rate.
Future Trends: Industry Consolidation Accelerates, Regulation Continues to Improve
Industry consolidation is actually inevitable for market maturity! Brands like Betano and Superbet already occupy 47% of the market share. Small and medium-sized operators, under the pressure of compliance costs and tax reforms, are surviving through mergers and acquisitions, and it is expected that in the future only about 12 leading companies will dominate the market. On the regulatory side, in addition to continuing to combat the illegal market, plans are also in place to introduce a B2B specific regulatory framework, strengthen supplier oversight, and further solidify the compliance foundation.
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This article is from "PASA-Global iGaming Leader" gambling industry news channel:https://t.me/pasa_news
Original in-depth gambling channel:https://t.me/gamblingdeep
Free data reports: @pasa_research
PASA Matrix: @pasa002_bot
PASA official website: https://www.pasa.news
