According to recent research by Regulus Partners, Brazil has become the top five global lottery market, second only to the United States, the United Kingdom, Italy and Russia.
While the rapid expansion of the industry has generated significant gains, market regulation has fallen slightly behind. At present, illegal gaming platforms account for at least 40 per cent of Brazil ‘ s market share, an alarming proportion that is the most persistent challenge for the industry and, with the spread of the gaming, growing concern about addiction. The Brazilian Government has set up an “E-Galm Health Observatory” to support people in need through the public health system. Despite the legalization of online investments in Brazil in 2018, the industry actually grew in a regulatory vacuum until 2023. The year had turned a historic turning point: the three pillars of licensing rules, regulatory frameworks and tax systems had finally landed. In January 2025, one of the world ‘ s most stringent regulatory systems was officially launched, after the 2024 system, of the Ceremony and Award Inspection Authority (SPA) under the Ministry of Finance. Currently, there are 184 compliance platforms run by 79 Brazilian licensed enterprises, serving 275 million users (12.5 per cent of the population). The percentage of men is 67.8 per cent; the 31-40 age group is dominant (28.6 per cent). In 2025, the industry achieved a gross revenue of R$32.2 billion (approximately US$5.9 billion).
As of October 2024, the Brazilian federal treasury had recorded R$ 7.95 billion in lottery taxes, including R$3.3 billion in statutory shares and various regulatory fees. After taking into account local taxes, professional bodies predict that public financial revenues will exceed R$9 billion throughout the year. With the adoption of the new tax law in December, the rate of collection increased to 15 per cent in 2028. Puliño Lemos Jorge, President of the Association of Legal Operators (ANJL) of Brazil, has warned that: “When compliance costs push up the price of the product, consumers will inevitably go to unlicensed vendors at the corner.” This refers directly to the core contradiction: a tax escalation could reverse the user’s embrace into an illegal platform. The Brazilian Minister of Finance, Fernando Haddad, insisted that “activities that cause social harm should bear higher public costs”. “The Government needs funds to address public health problems such as lung cancer, alcohol and gambling addiction. The expert noted that only a 5 percentage point reduction in the share of illegal lottery would result in an additional R$ 870-11 million per year. The current law enforcement strategy is a multi-pronged one: banning illegal websites, tracking the flow of funds and eliminating illegal advertising on the Internet. SSPA data indicate that 93 regulatory investigations were initiated within 11 months, covering 112 platforms; financial institutions marked 801 suspicious transactions and closed 483 accounts; and the Joint Telecommunications Regulatory Authority closed down some 25,000 illegal websites and removed 2,689 Internet red accounts and 210 non-compliance stickers from 2024.
The Federal Court of Audit (TCU) evaluates the regulatory framework as “designed, but robust” and refers directly to the weakness of human capacity and cross-sectoral synergies. Illegal platforms frequently change domain names and financial surveillance needs to be strengthened in a coordinated manner across sectors. In the face of the re-emergence of the illegal platform, the new regulation has been enforced: “The system needs to be perfected in a dynamic way” as stated by the director of the Platform’s SPA, who stated: “The system needs to be put on line for the introduction of the AIMS system, with the use of the credit card/cash/encrypted currency payment limit for strict registration awards. Preparations are under way for a new round of rule optimization in early 2026. As the Brazilian gaming industry expands, its core challenges remain the same: How to find a sustainable gold balance between the expansion of legal markets, the eradication of illegal activities, the need for increased fiscal revenue and the protection of public health. This is a challenge not only for Brazil, but also for the more global and emerging gaming markets, which provide valuable references.
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