A New Era for Brazil’s iGaming: What to Expect in 2025
The iGaming market in Brazil continues to gain momentum, becoming one of the fastest-growing globally. Forecasts suggest the market will reach €0.55 billion in 2024 and nearly triple to €1.57 billion by 2028. This growth is driven by the widespread adoption of the PIX instant payment system, which has made financial transactions faster and more accessible for users. Over 90% of players already prefer this method, opening new opportunities for regulated platforms.
PIX: The Engine of Growth
The PIX instant payment system has become an integral part of daily life for Brazilians and the iGaming industry. With an annual transaction volume of 28.5 billion, Brazil ranks second worldwide for instant payment usage, behind only India. In the iGaming sector, PIX has replaced outdated payment methods like credit cards, offering players a fast and secure way to deposit and withdraw funds.
New Regulations: Challenges and Opportunities
Starting in 2024, stricter rules will reshape the market. Key changes include:
1. Licensing for Payment Service Providers (PSPs): PSPs must now obtain authorization to transfer funds abroad, complicating partnerships with international operators.
2. Biometric Identification: New technologies will verify player identities to ensure greater transparency.
3. Exclusive Bet.br Domain: Licensed operators will receive unique domains to distinguish themselves from illegal platforms.
4. Crackdown on Illegal Operators: Authorities, in collaboration with Google and Meta, have already blocked over 2,000 unlicensed websites.
The Shadow Market: A Persistent Challenge
Despite regulatory efforts, most of the market remains underground, with 91% of operators unlicensed. Around 49 million players use unregulated platforms, generating a staggering $5 trillion in annual bets. High taxation on winnings and low average incomes are key reasons behind this. Some major operators, like Betway, have already exited the market, focusing instead on regions with fewer barriers, such as Africa.
The Future Lies in Innovation
Operators and PSPs ready to adapt to these changes will secure leading positions in the industry. This involves integrating advanced technologies to optimize PIX transactions, enhancing automation, and meeting new standards. BetaTransfer is already deploying reliable payment solutions for this promising market.
Brazil’s iGaming industry represents both a challenge and an immense growth opportunity. For businesses willing to evolve, it’s a chance to lead in one of the world’s most dynamic markets.
