This article first appeared in Portuguese on 4 March 2025.
Regulation has been driving significant changes in the betting market in Brazil since last year, aiming to establish a safe and transparent environment for operators and bettors. One of the key milestones in this process was the regulation of online gaming even before the legalisation of physical gaming, a reverse path from that adopted by other countries. This advancement happened due to a massive demand from the sector and the need to bring legal security to operations. During a panel at the SBC Summit Rio, Senator Irajá Abreu, Undersecretary of Authorisation Daniela Olímpio, and Deputy Secretary of the Carolina Yumi discussed several important topics related to regulation, including their trajectory and priority themes for discussion within the Department of Prizes and Bets.
“We approved the regulation of online gaming, and now, after a long time, we are finally discussing and voting on physical gaming.”
Senator Abreu emphasised that this approach was necessary due to the growing demand and the urgency of establishing clear rules for the digital sector. However, he pointed out that adjustments will be inevitable over time.
“Time is the master of reason and will guide us in the possible changes that legislation will require.”
Another relevant point was the need for greater transparency in the betting sector, especially in the online segment.
“In physical gaming, there is the possibility of on-site audits of the machine algorithms. In the online sector, we need to create mechanisms that offer more transparency to the public opinion.”
Senator Abreu mentioned that the legislation should provide practical tools for monitoring and oversight, ensuring that platforms operate safely and follow the established rules.
One of the challenges the sector faces today is combating illegal practices and protecting consumers. To address this, the senator advocated for adopting technologies that enable the traceability of operations and transparency in the operational rules of platforms.
Another point highlighted by the senator was the excessive bureaucracy that may hinder foreign investments in Brazil’s gaming sector.
“We need to create a regulatory environment that encourages investors and promotes the sector’s sustainable growth.”
He warned that, without adequate regulatory balance, the country risks driving away serious operators and creating space for companies that do not follow good practices.
For the senator, legislation must establish clear and practical rules to facilitate the entry of companies into the Brazilian market. He advocated for a simplified licensing process and the reduction of bureaucratic barriers that could make Brazil less attractive to the sector.
“If we want a strong sector, we must ensure that regulation does not become an obstacle to the market’s development.”
With the new regulation, online games were included in the selective tax, being taxed similarly to products like cigarettes and alcoholic beverages.
“We cannot equate responsible gaming to activities harmful to human health. We need to work with the government to correct this issue.”
According to him, excessive taxation could undermine Brazil’s sector’s competitiveness, making the market disadvantaged compared to other countries.
“If we want a strong and sustainable sector, we need a fair tax burden that does not make legal operations unfeasible.”
The senator warned that high taxation could encourage the illegal market, reducing government revenue and compromising consumer safety.
In her speech, Daniela Olímpio highlighted the work done by the Department of Prizes and Bets (SPA) during its first year of existence. She commented on the number of regulatory actions established in 2024. Daniela described these advances as true “miracles,” considering the timeframe between September and December to analyse, regulate, and authorise many companies.
An important point raised was the number of authorised companies: 71 out of around 350 applications were filed. Daniela says this number shows significant success for the Brazilian market, especially considering the adaptation process for legal entities already operating before 2025.
Daniela explained that, although the SPA is part of the Ministry of Finance, where the priority is usually raising money, the main focus has been organising and controlling the betting market. Companies were released with great care, following well-defined rules to ensure safety for bettors and a more stable market. Even so, the authorisations have already helped raise over R$ 2 billion.
She also spoke about the concern with bettors’ mental health and more responsible practices in the sector. Daniela felt it was important to remind that it is essential to have a safe and transparent market, putting player protection and social responsibility first.
Carolina Yumi highlighted the importance of transparency and control in the betting market since the Department of Prizes and Bets (SPA) creation on January 31, 2024. She explained that the first regulatory agenda was launched in April of the same year, containing 11 topics organised in 10 ordinances, which were completed by July. According to Carolina, the objective was clear: “One of the concerns is transparency,” ensuring that all understood the rules.
An important point was the platform requirement to transparently show the Return to 바카라er (RTP). In addition, all algorithms, systems, and procedures operators used must be certified by bodies accredited by the Ministry of Finance. Carolina explained, “This guarantee must be explicit for everyone, for all players accessing the system.” The SPA receives large daily volumes of data for oversight and to ensure everything operates according to the rules.
She also mentioned creating a working group with the Ministry of Health, Sport, and the Presidential Communication Department. The goal is to develop awareness campaigns to alert the public about the risks of gambling, especially to prevent betting on unauthorised sites. This group has already appointed its members in the Official Gazette and should start meetings soon.
Another highlight of Carolina’s speech was the public consultation that opened in February to gather opinions on the next phase of regulations. More than 200 people participated in a public hearing on February 21, contributing suggestions until the final deadline on March 27. According to her, this consultation aims to define “what the priorities would be” for the new rules, allowing society to participate actively in this process.
Finally, she mentioned the creation of a National Betting System, following the guidelines of the same law, which allows states and the Federal District to also act in oversight. This initiative aims to standardise the rules and improve control over the sector, ensuring greater security for both bettors and the market.