Brazil’s First Year of Legal Sports Betting In Review

January 1st, 2025, was when Brazil launched its fully regulated legal betting and iGaming market, with the enactment of Law No. 14,790/2023. A year on, and the Ministry of Finance’s Prize and Betting Secretariat, SPA-MF, was pleased to announce that over 25 million Brazilians placed bets through legal channels during 2025. It was a busy year for players, operators and lawmakers alike, as legislative changes were enforced throughout 2025 and Brazil rolled out its centralized regulation and self exclusion system, SIGAP.

The regulator’s press release regarding 2025 was highly optimistic, even reporting that it had blocked over 25,000 illegal betting websites. It still didn’t quell the gossip about the magnitude of Brazil’s black market, which persists despite legislative efforts. Brazil may have figured out how to regulate operators and formed a sturdy foundation for its iGaming and betting market, but it still has a long road ahead to winning back players and enhancing the onshore channelization of sports betting.

Brazil’s Legal Sports Betting 1 Year On

The Ministry of Finance announced that within 1 year of market regulation, its subsidiary agency, SPA, blocked over 25,000 offshore betting sites. The SPA registered over 130 cases involving betting companies during 2025, and it is understood that 80 of these cases are being assessed for potential penalties. The Ministry of Finance also closed 550 bank accounts, suspected of being used to transfer money to unregulated betting companies. This was one of the extensions to the legal betting market launched in Brazil, where many financial services and potential black market ePayment gateways were closed off. One of the most controversial was Brazil’s ban on cryptocurrencies as a deposit method for sports betting.

There are currently 79 legit betting operators in Brazil, with full licensure and permission from the gambling authorities. Around R$ 37 billion (approx $7 billion) was spent in 2025 on sports betting, with the state pocketing around R$ 9.95 billion in tax, plus R$ 2.5 billion in license fees and R$ 95.5 million in regulatory and inspection fees. With over 25 million Brazilians placing bets on legal channels, the Ministry of Finance celebrated a successful first year of legal sports betting.

Ongoing Changes to Betting Tax

Payment services were blocked, a national Self Exclusion Register (SIGAP) was set up to monitor player behaviors, municipal lotteries were shut down, and strict advertizing laws were set up in the wake of the iGaming and betting market launch. But the most important discussions revolved around the Brazilian sports betting tax. A gradual increase in sports betting taxes was approved last year, upping the 12% GGR that was established with Law No. 14,790/2023, and pushing the GGR tax up to 13% this year. It is controversial because the 13% gaming tax is not the only levy that operators have to pay, not by a longshot.

Operators also need to pay social contributions (9.25%), a municipal service tax (up to 5%), corporate income tax (34% on net profits), and monthly regulatory fees that can go up to R$ 2 million. The gaming tax, which was 12% and from January 2026 has been pushed up to 13%, is also set to rise in the next few years. It will increase to 14% in 2027 and then go up to 15% from 2028.

The combined effect of these levies can easily reach 25% up to 50% of an operator’s revenue. And when operators have to rethink their business model, it is usually at the expense of players, by cutting back on bonuses, diminishing the quality of the odds by raising sportsbook juice, or even for casino gamers, they can do this by reducing the number of more expensive casino games (think live dealer games and branded titles) in exchange for games that are cheaper to host. Players, who have to pay a 15% tax on their net winnings, will suffer from these concessions and levies the hardest.

Ministry of Finance Requiring More Resources

So it is no surprise that while Brazil has succeeded in formulating and launching its iGaming and online betting industries, it still hasn’t tackled the issue of the black market. A report back in 2025 indicated that around 73% of surveyed bettors used at least one illegal betting site in 2025. The excuses about not being able to recognize a legal channel from an offshore betting site don’t really stick anymore, especially since now legal Brazilian betting sites must have “bet.br” domain names, as stated by Article 5 of Ordinance No. 722/2024.

The SPA has worked tirelessly to identify and block black market betting sites, but there were concerns that they don’t have the resources to fully handle the issue. In December, the Brazilian Court of Accounts gave the Ministry 120 days to bolster the SPA. There were statements that suggested the SPA suffered from staff shortages, and that it didn’t have the technology required to manage the job. Though it is not an easy job, not by any standard. In Europe, there were talks last year of a cross-country alliance to battle the black market, with regulators from 7 jurisdictions agreeing to share data to find the illegal domains. These domains can change, operators can launch skin sites, and by constantly moving around, they make it extremely difficult for authorities to launch investigations and block off those operators.

The broad understanding now, among market insiders, is that Brazil’s black market comprises between 41% and 51% of the total market. So if there was R$ 37 billion spent at legal channels, then that equates to somewhere between R$ 25 billion (~$4.7 billion) to R$ 38.5 billion (~$7.3 billion) spent at black market sites.

Brazil’s Gambling Sector in 2026

Despite the looming presence of Brazil’s black market, the figures show that the first year of sports betting in Brazil was quite successful. The regulated market attracted millions of Brazilians, and over 200,000 people signed up for the SIGAP self exclusion register in the first weeks of it going live. Going from an unregulated market to a fully governed one, especially with the tight levy burdens and restraints, was not going to be an easy job. But Brazil has pulled it off, and managed to create a legal framework that sports fans can get behind.

To onboard the channelization even more requires winning the loyalty of the Brazilian betting public. Tax hikes and competition limitations may tamper with the progress, but if the regulated betting does not lose its competitive edge against the black market, Brazil’s market should be able to build on last year’s progress. This year, especially with the 2026 World Cup on the horizon, where record numbers of soccer bets are expected to be placed (especially considering Brazil are among the favorites to win – when are they not?), could be the ultimate testament to regulated betting in Brazil. If they can win the majority of the market share that goes towards the World Cup, Brazil will be well on its way to winning over the public and establishing a strong foundation for its legal sports betting channels.