Data from Pay4Fun, the first payment institution authorized by the Central Bank of Brazil (Bacen) to operate in the entertainment and sports betting segment, shows that the sector experienced a decline of over 90% in February, reflecting the adaptation period to the new regulatory demands.
However, the market responded quickly: by March, the decline had already narrowed to 22% compared to the same period in the previous year. The recovery pace accelerated in the following months. In April, transaction volume surged by 1,973%, and in May, growth remained positive at 115%.
The data is based on thousands of financial transactions processed through legal betting platforms integrated with Pay4Fun in Brazil.
According to Pay4Fun, the initial downturn reflected an unprecedented adjustment process in the country. Users faced new requirements such as document submission, facial recognition, and linking bank accounts, factors that created friction in the betting journey.
Many users were not even aware of which platforms were officially regulated. On the business side, licensing costs and new compliance obligations led some operators to temporarily exit the market.
For Leonardo Baptista, CEO and co-founder of Pay4Fun, the initial decline was “a natural adjustment to the new reality.” According to him, regulation was introduced to bring order to a segment that had previously operated informally, distinguishing legal operators from illegal ones.
“The market has shown it's adapting, with platforms updating their systems and processes to comply with the new rules. This brings greater security for both bettors and operators,” the executive affirms.
User awareness, favoring regulated platforms with a ".bet.br" domain, has helped drive the market’s recovery. Additionally, the entry of major international operators has increased both competitiveness and confidence in the sector.
With clearer rules and the formal entry of leading players, the Brazilian online betting market is expected to experience significant growth throughout 2025. Pay4Fun projects an increase of between 20% and 30% in total betting volume by year-end, reinforcing Brazil’s potential to become one of the largest global markets in the industry.
Founded in 2018, Pay4Fun is the first payment institution operating in the sports betting sector to receive authorization from the Central Bank of Brazil. The company reached R$ 2.6 billion (US$474m) in financial transactions in 2022. It was named Best Payment Method for Latin America at the 2022 SAGSE Awards and chosen as Best Payment Method at the Brazilian iGaming Awards.
In 2023, the company earned the RA 1.000 seal from 'Reclame AQUI', ranked 3rd best financial services company to work for by GPTW, and took 2nd place in the Payment Innovation of the Year category at the SBC Awards in Barcelona.
To learn more about the company, visit the website or connect via Linkedin.
Source: GMB
