Brazil gambling market set for consolidation in 2025, lawyer says

Brazil’s inaugural year in the legal online gambling market is poised to be a transformative period marked by regulatory nuance and potential for significant consolidation, according to Udo Seckelmann, a seasoned betting lawyer at Bichara e Motta Advogados. Seckelmann asserts that the prevailing public sentiment against gambling is likely influencing decisions made by the Secretariat of Prizes and Bets (SPA).

In an interview with iGB, Seckelmann, who leads the firm’s gambling and crypto practice, emphasized that the initial year of operation for Brazil’s online gambling landscape will entail substantial regulatory shifts as stakeholders adapt to the newly established framework.

Looking ahead, he anticipates that 2025 will emerge as a “year of consolidation” where both regulations and regulatory expectations are clarified, allowing businesses to align their operations with statutory requirements.

“This year will witness considerable changes and consolidation as interpretations of regulations solidify within the SPA,” Seckelmann stated. “We will see what practices are permissible and which will be curtailed, alongside possible revisions to existing rules.”

Seckelmann highlights a critical area of focus: “Given the scrutiny impacting the sector, it’s conceivable that the regulatory body or other government entities may implement tighter constraints on advertising and adjust gambling tax rates.”

The launch of Brazil’s regulated online gambling market commenced on January 1, 2025, marking a vital step toward positioning Brazil as a significant player within the global betting landscape, buoyed by its population exceeding 200 million and a culturally entrenched affinity for sports.

During this launch, the SPA granted full online betting licenses to 14 operators, while over 50 additional companies received provisional licenses, enabling them to fulfill technical compliance and certification requirements.

International powerhouses such as Bet365 and Betsson have entered the Brazilian market, joining local contenders like Aposta Ganha and Rei do Pitaco, reflecting a growing competitive environment.

However, despite the enthusiasm surrounding this burgeoning market, challenges remain. Operators are grappling with public concerns related to gambling addiction and navigating complex Know Your Customer (KYC) compliance procedures.

Shifting Public Perception of Gambling in Brazil

According to Seckelmann, the sector’s uphill battle is compounded by a prevailing negative perception of gambling within certain demographics in Brazil, particularly following a wave of criticism in the latter half of 2024.

Improving public sentiment will be paramount in 2025, along with the industry’s efforts to avoid overregulation akin to what has transpired in European jurisdictions like Germany, leading to channelization challenges.

“The industry is working diligently to convey the message that we are not antagonist forces,” Seckelmann said. “We aim to comply with legal standards and contribute positively to the community.”

He further cautions against heavy taxation and increased restrictions, noting that such measures do not yield effective results based on historical analyses from other regions. “Operators this year will need to invest in public relations to convey the inefficacy of these approaches,” he remarked.

The Impact of Negative Narratives on Policymaking

Seckelmann points out that the surge in public pressure towards the end of 2024 was fueled by a contentious retail sector study alleging that gambling erodes their profits and diminishes consumer spending on essentials like healthcare and food.

This backlash has prompted numerous political initiatives aimed at constraining operator activities, including a shocking proposal to prohibit betting entirely. Seckelmann argues that these legislative efforts are significantly swayed by the aforementioned retail industry narrative.

“We find ourselves at the heart of a narrative conflict, with retail and various economic sectors in Brazil asserting that significant funds are drained from the betting market without recognizing the returns players receive,” he explained.

“Consequently, the prevailing perception is that all to be seen is the money forfeited by bettors in Brazil, which misrepresents the reality of the situation.”

This skewed perspective, Seckelmann warns, is not just shaping public opinion but also influencing congressional attitudes and the regulatory outlook.