In recent years, the global betting market has undergone a profound transformation. Driven by the expansion of regulation in multiple countries and growing discussions about the sector’s societal impact, the industry has been evolving consistently. This movement has attracted increasingly significant investment and strengthened protection and security standards for players.
This reality is also taking hold in Brazil. As the country positions itself as one of the world’s major betting hubs, we are closely following developments in the regulatory process. Brazil now has a concrete opportunity to become a global benchmark in the sector — as long as the framework is built upon principles such as transparency, security, responsibility, and impartiality.
That’s why it’s essential to recognize the benefits of a regulated market, including increased tax revenues, job creation, innovation stimulus, and greater oversight of responsible gambling practices. All of this must be aligned with a firm crackdown on the illegal market, which still represents a significant portion of operations in the country.
More than a legal requirement, regulation must be understood as a strategic asset for companies committed to serious and lasting operations in Brazil. In a market undergoing structural development, having a strong regulatory framework is more than a differentiator — it’s a clear competitive advantage.
Regulated environments offer predictability, legal certainty, and greater trust from consumers, investors, and partners. By raising the bar in terms of compliance and enforcement, regulation naturally filters in the best-prepared players — those committed to integrity, responsibility, and delivering a superior user experience.
BetMGM has always operated under the highest international standards of compliance and auditing, allowing us to act with transparency and confidence in every market we enter. That’s why we deeply value the existence of clear laws and guidelines, which offer technical and legal support for properly authorized operators.
In mature markets, this regulatory model translates into a virtuous cycle that fosters credibility, competitiveness, innovation, and sustainable growth.
In addition to benefiting responsible operators, regulation also demands strong and effective action from government authorities and regulators — especially in combating illegal gambling and protecting consumers.
According to research from the Brazilian Institute for Responsible Gaming (IBJR), in partnership with the Locomotiva Institute, it’s estimated that between 41% and 51% of bets placed in Brazil still occur outside legal channels. This represents a significant fiscal loss — between R$1.8 billion (US$ 330m) and R$ 2.7 billion (US$ 492m) were lost in just three months. That figure could reach as much as R$10.8 billion (US$ 2bn) annually.
Given this scenario, it is urgent that the industry as a whole advances in its dialogue and builds a clear narrative about the competitive advantage of regulation. Well-defined rules create a level playing field, encourage long-term investment, and increase consumer trust.
Requirements such as independent audits, anti-fraud systems, bet traceability, and effective anti-money laundering policies not only raise the industry’s standards but also drive out operators who are not committed to legality and ethics.
Regulation, therefore, should not be seen as a barrier. It represents the solid foundation for a safer, more professional, and sustainable market. And that’s the path Brazil now has the opportunity — and responsibility — to take.
Brazil has the chance to lead by example
It’s important to highlight that we are experiencing a historic moment for the betting industry in Brazil. Since fixed-odds betting was included in national legislation in 2018, the country has emerged as one of the world’s largest markets. With regulation coming into force in 2025, the sector will begin operating with legal certainty, driving a solid process of professionalization and maturity.
Part of this maturity stems from the legal requirement that operators maintain a local headquarters and presence. This measure strengthens institutional presence, creates jobs, boosts revenue, and encourages responsible practices.
When combined with well-executed regulation, the positive impact multiplies, laying the groundwork for a more transparent, innovative, strong, and secure ecosystem.
Brazil has everything it needs to become a global reference in this space. But for that to happen, we must clearly communicate to society the real benefits the sector can bring — and reinforce that betting should be seen as entertainment, not investment.
BetMGM is ready to be an active partner in this development. We count on MGM’s global experience and a robust structure guided by ethics, responsibility, and excellence.
We believe that security is not just a technical requirement — it is the foundation of a healthy, reliable, and sustainable betting market. And that is the commitment we uphold in every country where we operate.
Daniel Xavier
COO of BetMGM
