How big was the Brazilian sports betting market in 2023?

Sports betting houses and online casinos have taken Brazil by storm in recent years. The impact was so deep that the country changed its legislation twice in the last six years. In 2018, President Michel Temer authorized the offer of sports betting sites in Brazil. As a result, advertisements of sports betting began to dominate the TV broadcast. In 2023, the country allowed private companies to operate sports betting both online and in physical establishments. But how big is the Brazilian sports betting market?

How much was spent in the Brazilian sports betting market?

According to statistics from Brazil’s Central Bank (BC), Brazilians spent more than US$ 11 billion on sports betting between January and November 2023. Out of this amount, US$ 8.9 billion was spent on bets, while US$ 2.2 billion was spent on fees paid to betting sites.

This number is, for instance, bigger than the one generated by Brazilian beef exports in the same period. Brazil, one of the largest exporters of the product in the world, raised US$ 9.5 billion from the sector last year, according to Secex (Secretariat of Foreign Trade), linked to Mdic (Ministry of Development, Industry, Commerce and Services).

Statistics of the Brazilian sports betting market

According to data from a survey conducted by Datafolha on December 5, 2023, through more than 2,000 face-to-face interviews in 135 cities around Brazil with people over the age of 16, 15% of Brazilians have already used betting sites at least once, with 8% saying they were frequent bettors.

On average, a person spent R$ 263 per month on bets in 2023 – around 20% of the minimum wage during the period. According to the same study, 30% of bettors spend more than R$ 100 per month.

The survey also revealed that the activity is more popular among men and young people. Around 21% of men said they had already bet, while for women the number was 9%. Almost a third of those between 16 and 24 years old have already bet at least once, even though betting is illegal for those under 18.

As for the outcome of the bets, 51% of respondents said they lost more money than they won. On the other hand, 38% said they won more than they lost, while 10% said the numbers were similar.

Legislation and regulations in Brazil

Since sports betting was not regulated in Brazil in 2023, bookmakers operated in other countries where it was legal. Last year, however, US$ 7.1 billion returned to the country through prizes received by bettors.

The scenario should change in 2024, because in December 2023, President Lula’s government sanctioned Law 14.790/23, which allows private companies to operate sports betting both online and in physical establishments. In addition, the law:

• Increased the minimum age for placing sports bets from 18 to 21.
• Banned advertising or any type of publicity aimed at minors.
• Required verification and validation of bettors’ identities.
• Required bookmakers to implement policies to prevent money laundering schemes and promote responsible gambling.

In 2023, the Brazilian government also approved Provisional Measure (MP) No. 1,182/2023, which amends Law 13.756/18. See below what changed with the MP:

• Monitoring: betting houses will have to purchase a license to operate in Brazil.
• Legality: companies with valid licenses will be able to accept bets related to official sporting events organized by federations, leagues or confederations.
• Taxes: players with winnings exceeding R$ 2,112 will have to pay 30% of their winnings in taxes, which is the same rate of lottery prizes. Betting houses, in turn, will have to pay an 18% rate on Gross Gaming Revenue (GGR), which is the revenue that comes from all games played, minus the prizes paid to players and taxes levied on legal entities. Companies in the sector, like any other, will also have to pay Brazilian taxes PIS, Cofins, Income Tax, CSLL and ISS.
• Money laundering: betting houses will have to implement effective monitoring systems to prevent money laundering. They will have to submit information about bettors to the Financial Activities Control Council (Coaf).

Considering that, with a population of over 215 million people, Brazil is the seventh most populous country on the planet, the changes in its legislation open up a golden opportunity for bookmakers. inplaySoft, for example, is prepared to serve clients who want to enter the Brazilian market. The company has fully compliant KYC and document checks worldwide, including in Brazil. Learn more about us!