The online betting sector grew 734.6% from 2021 to April 2024, per Datahub’s data to CNN. In Brazil, companies rose from 26 in 2021 to 79 by end of 2022, a 203% increase. In the first four months of 2024, as many new companies were established as existed in 2022.
“Regulation brings more security for companies and consumers, favoring the growth of the sector,” explains Felipe Mesquita from Datahub.
Sports betting was legalized in 2018, but regulation was only established five years later. In 2023, 134 companies expressed interest in operating in Brazil, according to the Ministry of Finance. Foreign interest also increased, with two companies seeking to operate in Brazil in 2023 and five in 2024.
The Datahub study shows growing interest in the Brazilian market, driven by new legislation offering more predictability and legal security. Foreign companies are registering with the Federal Revenue, complying with Brazil’s fiscal and regulatory requirements.
Pandemic and Social Isolation Drive Expansion of Online Businesses
Mesquita notes that the online betting sector gained strength by leveraging technology’s connectivity during social isolation.
“The turning point came after the pandemic, when people stopped interacting directly, giving space to technology services. The online betting sector experienced a significant boom,” explains the Datahub executive.
Jhon Macario, marketing and research analyst at Datahub, reinforces that technology has popularized the business.
“Previously, betting was limited to lottery outlets. Now, there’s greater accessibility via smartphones,” Macario indicates.
This trend also highlights the consumer profile in this market. According to Datahub, 59.8% of bettors are between 22 and 36 years old, the main age group for this audience.
“The younger generation is very connected to electronics; traveling to place a bet doesn’t even cross their minds,” adds Mesquita.
Online Betting Fuels Growth in Various Economic Sectors
André Gelfi, president of the Brazilian Institute of Responsible Gaming (IBJR), also highlights that this movement impacts various economic sectors, from technology, with platform development, to communication and sports in general.
“The online betting sector moves billions of reais, generates thousands of jobs, and is currently very hot, especially after federal regulation at the end of last year,” he says.
However, the expert emphasizes the sector’s maturation process following federal approval.
“We need to identify mistakes and successes and evolve from the challenges the market encounters,” he says. “The trend is for further growth, impacting various sectors.”
Macario adds that the betting movement attracts not only young people but also an older audience “due to advertising during broadcasts.”
Recently, only six out of 20 teams in the Série A – the top division of the Brazilian Championship – did not have a betting company as their main sponsor. Corinthians became the seventh after its main sponsor, VaideBet, terminated the contract.
“Platforms are not just for betting; a significant trend in the entertainment market involves actions with influencers, advertisements, and teams being promoted,” explains Macario.
“The market has grown, is growing, and will continue to grow.” Felipe Mesquita sees a positive outlook for the market, believing its increasing structure will attract new companies and interested bettors.
“There is still much room [for new companies]. The market has grown, is growing, and will continue to grow,” he states.
Payment Methods as Online Betting Sector Booster
The marketing and research analyst points out that one key area for online betting sector expansion is payment methods.
Founded in 2018, Pay4Fun is one of Brazil’s leading online payment platforms and, in 2022, became the first payment institution in the betting segment to receive authorization from the Central Bank. The company acts as a “bridge” between betting companies and bettors.
Leonardo Batista, CEO of Pay4Fun, has been in the market for 20 years, starting with an online bingo platform. From 2009 to 2017, he operated a betting house and identified payment methods as the biggest challenge, as most were irregular. This area has room for growth.
“There is room for improvement in quality, both in betting houses and payment methods. Currently, there are many low-quality and irregular services,” observes Batista.
Besides regulation, the sector has the opportunity to grow by “combining two national passions,” Batista notes. “Brazilians are naturally passionate about betting, and sports betting crowns this passion,” he says.
However, he emphasizes that for the sector’s growth to be sustainable, responsible, and safe, a distinction is necessary: the online betting sector is for entertainment, not investment.
“You see many influencers selling bets as guaranteed money or extra income. Betting is not extra money, nor is it a money guarantee,” reflects Batista.
For more information about the brazilian market, licensing and payment provider, talk to our consultants
