Despite significant growth and the licensing of 80 companies, the Brazilian sports betting and gaming market remains a highly challenging environment, according to a panel of experts at the SBC Summit Lisbon.
The discussion, moderated by industry veteran Neil Montgomery, concluded with a stark warning that “Brazil is still not for beginners.”
One of the most significant obstacles identified by the panel is the thriving illegal gambling market. Leonardo Baptista, CEO of Pay4Fun, estimated that the black market could account for as much as 50% of all betting activity in the country, posing a substantial threat to licensed operators.
Andre Gelfi, President of the Instituto Brasileiro de Jogo Responsável, echoed this sentiment, stating, “Combating the illegal market is what we are trying to do at the end of the day.”
The panel also heavily criticized the country’s evolving and often unpredictable regulatory landscape. New PIX-related payment regulations, including a BRL 15,000 ($2,826) limit on withdrawals, were highlighted as creating a “damaged user experience.” The government has faced backlash for continuously changing the rules, preventing the market from achieving a stable equilibrium.
Furthermore, Roberto Regianini, a UX Group Board Advisor, noted that the market is already undergoing rapid consolidation, with the number of dominant operators shrinking to around 25-30.
He expressed concern that “large governmental involvement” is creating uncertainty and could drive foreign operators out of the market. Almir Silva, CEO of BetMGM Brazil, argued against harsh advertising restrictions, stating that robust marketing is crucial to help consumers distinguish between legal and illegal operators.
The consensus was clear: while Brazil is already the third-largest regulated market in the world, its complexities demand deep local knowledge and a resilient strategy.
