SBC News Voice of the Sports Betting Industry
André Gelfi, founder and director of the Brazilian Institute of Responsible Gaming (IBJR), has sounded the alarm over the nascent online gambling marketplace, warning of threats from the black market.
According to Gelfi, illegal operators “control about 60% of Brazil’s betting market and generate around 1 billion reais in gross revenue per month” – a liability that requires immediate intervention by authorities and lawmakers.
As the leader of the IBJR, which promotes safe and fair standards for online gambling, Gelfi recognises that the protection of the betting market has been the biggest challenge from the very beginning, which saw Bets transition from a grey-to-regulated status. Despite the efforts made, the regulated sector still holds less than half of the market share, approximately 40%,well below the channeling % rate sought be challengers and regulators.
Gelfi emphasises that raising public awareness on legal gaming and building strong relationships with authorities and regulators are essential to accelerating the legalisation process within the gaming industry.
The government has taken some measures to address illegal betting. Gelfi believes that blocking illegal sites is a positive step, but it is insufficient on its own. The Secretariat of Prize and Betting (SPA) of the Ministry of Finance had blocked more than 11,500 sites by February.
However, in late 2024, Carlos Baigorri, president of ANATEL, stated that more effective legal tools are needed. Consequently, the Treasury and ANATEL signed an agreement in December to expedite the process of blocking illegal sites.
Despite the challenges, Gelfi sees some positive measures, including restricting advertising to licensed companies, which makes it harder for illegal operators to market themselves.
Nevertheless, he believes that the solution lies in controlling financial transactions. Given that Pix is central to betting activities, Gelfi argues that financial institutions should be able to monitor who makes Pix payments and through which CNPJ. In this way, he maintains that illegal operations could be eradicated.
Gelfi also points out that, although high levels of informality persist, the regulatory framework is modern and conducive to market competition. He stated that the industry is still in its early stages and that the process of effective inspection is just beginning.
The size of Brazil’s betting industry
Gelfi also states that the Brazilian betting market was estimated to have generated R$25 billion in 2024 and that it is likely to grow as regulations are implemented. The IBJR believes that the industry will experience some initial challenges as measures are put in place to ensure player protection, but overall, the trend points towards growth.
Although the revenue generated is significant, Gelfi also notes that the market is still in its development stage, leaving substantial room for expansion.
At present, the Brazilian Senate is awaiting the conclusion of the Parliamentary Commission of Inquiry (CPI) that is investigating the economic and financial liabilities related to online gambling. The CPI’s findings and policy recommendations are expected to play a significant role in shaping future legislation and regulatory frameworks for both online and land-based gambling in Brazil.
Land-based gambling needs to come into play
Gelfi strongly supports Bill No. 2234/22, which aims to legalise physical casinos. He believes that setting standards and regulating the sector is essential for integrating this economic activity into Brazilian society.
At the close of 2024, the Chamber of Deputies authorised Bill No. 2234/22 to legalise land-based casinos in Brazil, which remains under Senate consideration. The government continues to navigate between the anticipated economic advantages and the social concerns associated with expanded gambling. Stakeholders are closely monitoring the situation, awaiting further legislative action in the coming months.
In his view, attempting to prohibit something that is already happening is futile. Instead, the government should recognise the existing market demand and establish appropriate and sustainable policies.
