The sports betting market, also known as ‘bets’ in Brazil, has been increasingly attracting consumers in the country. Between 2018 and 2020, the sector grew from R$2 billion (US$400 million) to R$7 billion (US$1.4 billion), solidifying the country as one of the largest markets in the world in this segment.
The numbers continue to rise, proving its great potential, as it is forecasted that by 2027, LATAM will move amounts in the order of US$ 6.75 billion in GGR, with Brazil alone expected to hold 45% of the share.
Currently, Brazilians bet up to R$ 54 billion (US$ 11.1 billion) per year, in both physical and online quotas, according to a survey based on recent data from the Central Bank, which includes remittances to betting companies operating abroad. To give an idea of the magnitude, this number exceeds the country's beef exports during the same period.
The rise of eSports
The popularity of sports among Brazilians is helping to increase interest in sports betting. A mapping by Comscore revealed that Brazilians spend 2 billion minutes per month on sports betting sites—a 281% increase compared to 2019. A survey conducted by TGM International in 2022 found that 8% of bettors bet daily and 31% bet a few times a week, the highest percentage in Latin America.
Another factor driving the growth of this market is the association of sports betting with Brazilians' favorite sport: football. Betting sites sponsor 69% of all football teams in the country. Data shows that of the 124 clubs scheduled to compete in a national division in 2023, betting platforms sponsored 69.4%. This includes 33.9% of master sponsorships, which occupy the most prominent space on team jerseys.
On social media, the gambling sector registered 617,000 actions on major social media platforms between January and April 2023, with 98% of users on YouTube, more than 87% on Instagram, 86.5% on Facebook, 54.4% on TikTok, 39.9% on Kwai, and 36.6% on Twitter.
Healthy ecosystem
Regarding the betting market, Brazilian legislation still has an extensive agenda to be developed by the end of the year. However, we already have guidelines such as CONAR's Annex X and the most recent ordinance approved: money laundering prevention (No. 1,143/2024), which are dictating best practices and the way forward for promoting responsible and safe gaming.
The "Annex X - Betting Advertising" of the Brazilian Code of Advertising Self-Regulation by CONAR sets guidelines to ensure that betting advertisements are responsible, focusing on the protection of children, adolescents, and vulnerable individuals. It emphasizes that all betting activities must be authorized by the relevant public authority and that advertising must strictly comply with current laws and regulations.
The principles covered include clear identification of advertising, truthfulness and information, protection of children and adolescents, social responsibility, and responsible gambling.
Meanwhile, Law 14,790/2023, called the “Sports Betting Law,” also highlights aspects such as the prohibition of minors participating in betting and requires operators to adopt user identification procedures, ensuring effective systems and processes to identify harm or potential harm to bettors.
Additionally, SPA Ordinance No. 1,143/2024, which addresses policies, procedures, and internal controls for preventing money laundering, financing terrorism, and the proliferation of weapons of mass destruction (AML/FTP) and other related offenses to be adopted by fixed-odds betting operators (BETs), establishes, in summary, that operators must apply for authorization in the SISCOAF (COAF system) for reporting suspicious transactions, adopt AML/FTP policies and procedures in accordance with current regulations, qualify bettors or platform users, and classify bettors in the risk categories defined in internal risk assessments.
Payment Institutions, regulated by the Central Bank, also play a fundamental role in promoting a safe and responsible betting market in Brazil. These institutions not only facilitate the operation of betting companies that operate in the country but also have the responsibility of adapting their operator clients to the local market. This includes offering a robust legal advisory basis, developing products and implementing features that assist in transactional monitoring, ensuring security associated with rapid and excellent operational performance.
Thus, Payment Institutions contribute significantly to a safer and more responsible betting environment.
Annia Gastelum
Growth Marketing Manager at WEpayments and Supervisor of the Engagement Committee of the Women in the Gaming Industry Association.
