As the industry celebrates these gains, fresh challenges arise. A looming tax increase and stricter advertising limits are on the horizon.
But before discussing the potential threats posed by the new regulations, it’s important to assess the industry's current state. To begin, let’s take a look at what’s been achieved in the six months since the official rules were introduced.
Slow start, fast record
With the new regulation taking effect on 1 January 2025, only providers with a R$30 million five-year licence could keep operating. As a result, many gaming titles lost access to the market – traffic dropped, betting volumes declined, and GGR decreased sharply. Our survey at SOFTSWISS confirmed a steep decline in the sector’s GGR and total bets in January.
However, as the months unfolded, the market began to heal. By June, average daily traffic rose steadily. SOFTSWISS saw GGR climb by 25% and total bets surge by 33% compared to January. This reflects a gradual market adaptation and stabilisation of operations between providers and operators in the new regulatory environment.
The pain point of the tax windfall
In May alone, the Treasury took in over R$810?million, a 23,000% year-on-year increase. This figure shows the 12% GGR tax at work – sports bets, online casino spins, and lottery games all contributed. However, the Ministry of Treasury aims for more.
A Provisional Measure proposes increasing the GGR tax to 18% from 1 October? 2025 to fund social security and health. Although Congress overturned the immediate Tax on Financial Transactions (IOF) bump, the GGR tax increase remains on the table.
Many iGaming companies warn that Brazil is already the least profitable market. Margins are tight, and an extra 50% tax burden could slow the industry's progress. The current tax revenues prove that regulated iGaming can support Brazil’s budget – and I believe that industry stakeholders and regulators can find a balanced solution.
After all, Brazil remains the seventh-largest betting market in the world – a highly attractive prospect for both providers and operators. This is why SOFTSWISS, for example, continues to invest in this market and has recently secured certification for its Casino Platform and Sportsbook in addition to the Game Aggregator and the Jackpot Aggregator, which were certified earlier this year.
Advertising in a new era
While operators adapt to licensing, advertising faces its own shake-up. Bill?2,985/2023, which passed through the Senate in May and is popularly dubbed as the “Betano Law”, imposes strict limits on promotional content:
* TV and digital ads can only run from 7.30pm to midnight, and radio spots are limited to 9.00am–11.00am and 5.00pm–7.30pm (Brazilian Time).
* Each sports team may feature only one official betting sponsor in stadiums and sports venues.
* Gambling promotions are prohibited during live sports broadcasts and match replays.
* Active athletes and influencers are not allowed in campaigns; only retired athletes without professional ties for at least five years may participate.
* Advertisements must not reference odds, bonuses, or financial guarantees, and mascots or AI-generated characters are also banned.
* Direct marketing messages may only be sent after users provide informed consent and platforms verify the recipients’ legal age.
* All campaigns must include a clear responsible gambling warning.
This approach mirrors the European approach but carries a uniquely Brazilian intensity. Of course, protecting vulnerable audiences is vital, though too many barriers could create a parallel unregulated market, pushing curious players toward unlicensed operators.
The Brazilian iGaming system is still young. The challenge for legislators and industry voices is to craft responsible advertising rules that will not repress the growth of the licensed sector.
A call for constructive dialogue
The future belongs to markets where regulation and innovation march hand in hand. In Brazil, there is an opportunity to pioneer balanced iGaming governance – one that protects players, empowers businesses, and positions the sector as a model for emerging markets worldwide. The conversation starts now.
I strongly believe that the industry needs consensus: regulators should consider operators’ on-the-ground insights. Bills and tax measures affect real businesses and jobs. A two-way dialogue can generate proper advertising windows, reasonable tax rates, and clear certification pathways that boost both operators' revenue and player protection.
Dario Leiman
Head of Business Development in Latin America at SOFTSWISS
