The Brazilian iGaming and sports betting market is currently experiencing its “unicorn moment.” Once a true digital Wild West, with over a thousand brands operating without regulatory oversight, the sector is now entering a new era of formalization and professionalism. Today, around 200 brands operate under regulation, while others still function in the so-called “gray market.” But the message is clear: Brazil is no longer a no-man’s land in this sector.
It’s no wonder the eyes of the world are on Brazil. Since 2023, the country has been leading the way in Gross Gaming Revenue (GGR) growth in Latin America, capturing an impressive 40% of the regional share. And forecasts are even more aggressive. By 2028, the Brazilian market is expected to reach US$3.63 billion in GGR—nearly half of all of South America’s total, according to 2024 data from Statista.
According to economists analyzing data from the Central Bank, Brazilians spent R$68.2 billion (US$11.8bn) on betting in 2023. And that’s no coincidence. The sector's marketing strategy has been striking, capturing the curiosity - and the wallets - of 51% of bettors who were influenced by advertising.
These companies have invested around R$550 million (US$95m) per year in football club sponsorships, helping to boost a market now moving R$ 120 billion (US$21bn), with 71% growth in just three years, according to data from the Ministry of Finance. It’s no surprise that the government now wants its slice of the pie, projecting annual tax revenue of R$ 12 billion (US$2.1bn).
To understand the scale, in 2024 Brazil registered 5.3 million variable income investors, according to B3. Meanwhile, Tigrinho, one of the country’s most popular games, has over 30 million players, almost six times the number of stock market investors, even though the stock exchange has existed for over 130 years.
Given this massive reach and the sector’s rapid growth, it’s natural that legitimate concerns would arise. The widespread involvement of digital influencers, for instance, has sparked debate about the need for stronger regulatory guidance, especially regarding exposure to younger or more vulnerable audiences.
It’s precisely within this context of rapid growth and increasing demand for accountability that the new regulatory framework comes into play. Provisional Measure No. 1182 of 2022 and the regulations published in 2023 represent a turning point for the sector. The government created the Secretariat of Prizes and Betting (SPA) to ensure the industry operates under clear rules, reducing room for irregularities. To remain competitive, companies now need robust financial structures, sharp compliance, and cutting-edge technology.
This isn’t just about ticking bureaucratic boxes, it’s a full-scale transformation in how these companies operate. Businesses that once thrived in the shadows of informality now need transparent governance and sophisticated anti-fraud systems. Financial tracking tools that ensure predictability and security are a must—and all of this must align with international compliance standards.
But who said that’s a problem? Brazil’s market-fit is so promising that it has already sparked a wave of mergers and acquisitions in iGaming. Major players are racing to gain scale and operational efficiency. The merger between Betnacional and Betfair, a deal valued at US$1 billion, is just the tip of the iceberg. Moves like this allow for cost reductions, expanded customer bases, and greater capacity to invest in innovation.
In this scenario, the financial structure of betting companies becomes the sector’s foundation. With regulation, it’s not enough to be big, you must also be solvent. The regulatory process imposes a series of new banking, tax, and operational standards that require sophisticated financial infrastructure. Companies wishing to operate legally must ensure transparent financial flows, comply with strict tax regulations, and implement secure, efficient payment systems.
That’s why banks and financial institutions have become indispensable strategic partners—capable of meeting the complex demands of high transaction volumes, elevated fraud risks, and the need for real-time liquidity. Without a financial partner who understands these intricacies, operations simply won’t take off.
Genial Investimentos has established itself as one of the key forces behind the sector’s financial structuring. With over 40 clients and five M&A mandates currently in progress, the firm has emerged as a leading provider of Pix payment infrastructure, ensuring fast and secure transactions. Additionally, it is launching tailored financial solutions to ensure compliance and operational efficiency, offering services such as risk management, tax consulting, and cash flow optimization.
In short, a country once infamous for its endless bureaucracy has, in record time, built a regulatory framework that propelled the iGaming market into high gear. From underground operations to solid corporate structures. From shady transactions to sophisticated financial systems. Of course, major challenges still remain, as pirate operators continue to capture significant market share. That’s why enforcement must be relentless. But it’s precisely at the intersection of regulation and innovation where the biggest opportunities emerge.
This is a time of opportunity! This industry opens a vast ocean of possibilities to fuel the ecosystem, from creating new products to exploring untapped vertical markets. So, the crucial question is not if the Brazilian iGaming market will grow—the numbers already prove that it will—but who has the vision, capital, and agility to lead it. Place your bets… literally.
Venâncio Velloso
Head of Strategy and Digital Transformation Journey at Genial Investimentos. He has 17+ years of experience in the digital market as co-founder of three startups (VTEX, Sapatino, and WebPesados). He later served as a digital strategy consultant for major groups such as Tracbel, Aliansce Sonae, and Athie & Wohnrath, and more recently, was part of the Amazon Brazil Marketplace expansion team. He holds a degree in Business Administration from Babson College and a master’s in Innovation, Strategy, and Marketing from MIT (Massachusetts Institute of Technology).
