Betting and iGaming GGR reached BRL17.4 billion ($3.2 billion) in Brazil in the first six months of the licensed market, new data from the Secretariat of Prizes and Bets (SPA) has reported.
The online market in Brazil began on 1 January after six months of operators applying for licences and meeting all the strict regulations surrounding the launch.
What does the SPA’s H1 data show?
In its first update on the market’s performance, published on Tuesday, the SPA said 17.7 million Brazilians had wagered with licensed operators during that first six months and 71% of these were men, while 28.9% were female.
Betting was most prevalent among those aged between 31 and 40 (27.8% of the total number of bettors). The 18-25 (22.4%) and 25-30 (22.2%) age groups ranked second and third, while just 2.1% of bettors were aged between 61 and 70.
The bets, placed with 78 licensed operators via their 182 authorised brands, amounted to BRL17.4 billion ($3.2 billion) over H1, with average monthly spending per active bettors standing at around BRL164 a month.
In July, the Federal Revenue Service said it collected BRL3.8 billion in gambling taxes during H1, while the SPA collected around BRL2.2 billion in licence fees, as well as approximately BRL50 million in inspection fees.
The SPA said it will continue to publish frequent data on the market’s performance.
SPA chief Regis Dudena said: “Our goal is, from now on, to periodically disclose the SPA’s activities and the evolution of the fixed-odds betting market in Brazil, fulfilling this government’s commitment to transparency and, above all, reporting to society regarding the responsibilities of the state and private actors.”
Data supports regulation
Early optimism over Brazil’s regulated market performance has been dampened somewhat by proposed regulatory changes.
New ad restrictions, such as watersheds, are currently progressing through parliament, while a preliminary rise to gambling taxes is awaiting a vote by the Congress, which is deciding whether to make the policy permanent.
Many in the industry have warned these changes will boost the black market and are calling for data to be utilised to more effectively assess the damage they could cause.
Dudena echoed these thoughts, saying reports such as Tuesday’s are “crucial” when it comes to potential alterations to the regulations.
“It provides concrete data on regulatory action, addressing topics such as oversight and control, as well as initial figures that reflect reality, not just estimates,” Dudena said.
“From here on, the debate on the fixed-odds betting market in Brazil can be conducted with even more solid elements, enabling us to advance evidence-based regulation.”
SPA notes illegal market progress in Brazil
The SPA’s data also provided an update on the state’s efforts to stamp out the illegal market. Many believe this is the primary issue for regulated operators. H2 Gambling Capital Managing Director Ed Birkin estimates around 30% of the Brazilian betting market is currently offshore.
Since October 2024, 15,463 illegal sites have been taken offline by the National Telecoms Agency, which was tasked by the SPA with removing sites of black market operators.
The SPA itself conducted 66 inspections involving 93 companies, with 35 of those cases resulting in sanctions across H1.
Additionally, the SPA noted 24 financial institutions made 277 reports of suspicious activity to the regulator over illegal betting transactions, with 255 bank accounts closed down. These belonged to individuals and legal entities believed to be involved in offshore betting.
The SPA also requested information from 13 payment institutions over suspicious accounts, resulting in the closure of 45 company accounts.
Further progress was made on advertising for illegal gambling, with 120 cases concluded, which led to 112 influencer pages and 146 social media posts being removed.
The SPA will continue to release data, and its head Regis Dudena hopes these insights will help to guide future regulatory decisions.