The beginning of 2025 marked a major turning point with the implementation of federal regulations for sports betting and online gaming. Licensed operators began operating under clear rules: mandatory licensing, minimum capital requirements, compliance, player protection, and tax collection.
However, the mere existence of rules does not automatically lead bettors to migrate to the legal market. The real challenge now is to make the regulated market competitive—not just among licensed operators, but against the grey market itself, which remains active and appealing.
Brazilian bettors have been shaped by unlicensed platforms, known for their speed in betting, withdrawals, and offering promotions. These are young, digital-savvy users who place bets on a weekly or even daily basis, spending an average of R$200 (US$36) per month. They don’t tolerate friction. If the regulated experience is slow, bureaucratic, or less advantageous, the migration simply won’t happen, regardless of the penalties in place.
According to Brazil’s Federal Revenue Service, over R$3 billion (US$545m) in federal taxes were collected between January and May. The oversight fee totaled R$21.4 million (US$3.9m) in Q1, according to data from SPA/MF. Estimates from the Central Bank suggest the sector generates between R$6 billion and R$8 billion (US$1.1 to US$1.45bn) per month in GGR. However, the majority of this is still outside the legal curve.
There’s another issue: most bettors don’t know how to identify whether a platform is licensed. The lack of clear communication, educational campaigns, and visible differentiators keeps the regulated market invisible to many.
If we want to compete, we must deliver a seamless journey: fast account verification, quick withdrawals, efficient support, and creative promotions—all within the rules. We must make it clear that betting legally is not a punishment, but a smart choice: protection against fraud, audited odds, refunds in case of errors, data security, and prevention of underage gambling.
The role of the state is also critical: ensuring a stable legal environment, active enforcement against illegal operators, and speed in issuing complementary regulations.
Regulation was the first step. But to compete, we need more. We need user experience, differentiation, and intelligent communication with the bettor. Being right is not enough—we must be desirable.
We don’t need to lower the bar. We need to raise the game.
Leonardo Sampaio
Chief Operating Officer at Todos Querem Jogar (TQJ)
