BRAZIL ECONOMY spoke to dozens of players in this sector to shed light on the importance of betting in the national economy. They defended the current regulation, which promotes the collection of taxes and rules for companies that intend to operate in the country. And they explained the advantages of this market, in the face of some criticism that they receive from time to time.
One of the most skeptical points is about the influence that betting could have on the purchasing power of Brazilians in retail, in particular. But data from IBGE indicate that this is not an absolute truth.
According to the institute, in December 2024, the sales volume in expanded retail trade – which includes vehicles, motorcycles, parts and pieces; construction materials; and wholesale specialized in food products, beverages and tobacco – grew 1.4% compared to the same month in 2023 and in the year to date, the increase was 4.1%.
Without many consolidated and open studies in Brazil about betting, BRAZIL ECONOMY had access to a survey by the company H2 Gambling Capital, a leader in market data, intelligence and consulting for the gaming sector, which estimated a forecast of GGR (Gross Gaming Revenue) in Latin America of US$ 23 billion in 2024, an increase of 38% compared to the US$ 17 billion generated in 2019.
GGR is different from the total betting volume. It is the revenue from bets minus the prizes paid to winners and the Income Tax deducted from the prizes. H2's estimate takes into account physical gaming houses and online betting. Casinos have seen stable turnover over the last five years, while digital gambling has increased by 220% in the period.
The consultancy estimated that Brazil accounts for 57% of the total GGR from online betting and gaming in Latin America. Colombia comes in second place, with a share of close to 10%. Here, GGR should reach approximately R$30 billion (US$5.1bn) in 2025 and R$51 billion (US$8.7bn) in 2029, for a national market that has 15.6 million active users. This is very much in line with what some Brazilian banks are already measuring. One of them estimated R$3.5 billion (US$595m) in GGR in January of this year.
Expert analysis
For Marcos Sabiá, CEO of galera.bet, Brazil, as the eighth largest economy in the world, has a historical relationship with gaming, combined with a financial system that has provided fast and secure payment methods and the arrival of giants in the sector that already operate in developed and regulated countries, bringing their expertise and technology, has enabled the establishment of a relevant industry in entertainment.
“I would highlight three sectors: payment methods, technology and marketing, especially the advertising and sponsorship market. Without a doubt, Brazil's financial system, which has solid institutions and thriving technology in numerous payment institutions, in addition to advanced payment methods such as Pix, has enabled the flourishing of a healthy and secure market in online gaming,” assessed the executive.
He projects the development of the sector this year. “Without a doubt, 2025 will still be a year of growth for the betting market.”
Marco Tulio, CEO of Ana Gaming, highlighted that, with the regulation sanctioned at the end of 2023 and the structuring of the new regulatory scenario in 2024, the 2025 figures are expected to reflect a new level for the sector, with greater formalization, increased tax collection and an even more significant economic impact.
“Sports betting drives a wide chain of suppliers and services, covering areas such as sponsorships, advertising, software development, customer service, data analysis, events, creation of gifts for activations and other areas,” he listed.
“In addition, the impact on the sports ecosystem is significant, since bookmakers have become major sponsors of clubs, leagues and athletes, fostering the development of sports in Brazil,” he added.
In addition, factors such as the advancement of digitalization, the popularization of instant payments (such as Pix) and the growing acceptance of mobile gaming have facilitated access to betting platforms.
Pillars
Fellipe Fraga, Chief Business Officer at EstrelaBet, which has two offices, one in São Paulo and the other in Belo Horizonte, employs around 320 people. He pointed out a significant impact on the legal and compliance sectors, which have become essential pillars to ensure operations within the new regulatory standards.
“With the regulation of the Brazilian market, operators began to operate in a safer and more structured environment, requiring continuous monitoring against fraud and sports manipulation,” said Fraga, highlighting investments in Artificial Intelligence and automation to optimize service, offers and retention, in addition to more efficient and predictive support, offering a more fluid and secure experience.
“EstrelaBet reinforces this commitment by maintaining partnerships with companies specialized in sports integrity, such as Genius Sports and Sportradar, which provide advanced technology to detect irregular patterns in bets, ensuring greater transparency and security for the market,” he highlighted, also mentioning that the evolution of sports betting in Brazil not only strengthens the sector itself, but also drives innovation, new technologies and strategic partnerships in complementary areas.
José Francisco Manssur, partner at CSMV Advogados, worked in 2023 as a special advisor to the Executive Secretariat of the Ministry of Finance. He was in charge of drafting the rules for the fixed-odds betting sector in Brazil.
“In a regulated manner, we see a series of levers in the economy provided by the sector. Furthermore, there is something that I consider quite relevant, which is the injection of resources that can reach R$ 2 billion (US$340m) in the actual sports activity,” he highlighted.
Manssur pointed out that before the entry of bets into the sports sponsorship scene, the sport was very dependent on state-owned companies, such as Caixa Econômica Federal, Petrobras, Eletrobras and other public companies.
“Today we see this movement towards the development and promotion of the sport as a whole. And I am not just talking about the big men's football clubs. There are also contributions from bets in youth categories, women's football and Olympic sports financially incentivized by online betting companies,” he emphasized.
Bernardo Freire, legal consultant for the National Association of Games and Lotteries (ANJL) and partner at the company Betlaw, analyzed that the regulation of bets and the development of the sector should lead to other advances. He mentioned the possibility of casinos expanding in the country, based on the organization of online betting.
“I see the success of electronic gaming as a possibility to show that there is nothing wrong with casinos. And, just like betting, it can boost an ecosystem that brings with it tourism, aviation, gastronomy, hotels… Several sectors that benefit from this,” he argued.
Source: BRAZIL ECONOMY
