Our team of over 400 experts worldwide are advancing to deliver our renowned products and services to the Brazilian market. We have partnered with GLI (Gaming Laboratories International) - the leading certification lab approved by the Brazilian Ministry of Finance.

So far, we are fully certified against GLI-33 and GLI-19 – the standards that have inspired regulators in Latin America and likely in Brazil. Additionally, the team is in the process of submitting the platform for certification against Brazilian technical standards. We are also advancing rapidly through data quality testing of our integration with the SIGAP Datavault system.

Key Advantages for Operators in Brazil

Operators that plan on entering the newly regulated Brazilian market will have numerous advantages if they partner with us. They will be able to provide their players with personalization features like My Sportsbook, My Event Builder, My Combo, and My Casino that skyrocket revenues and retention.

Furthermore, our KYC and AML provider is a market leader that guarantees the highest level of compliance for all operators that choose to go on this route.

Also, we have already partnered with numerous PIX payment system operators and provide a real-time AI-powered Responsible Gambling system which can easily adapt to local regulations.

Another key advantage is the strong relationship with third-party casino suppliers that will soon be able to provide their exciting portfolios to this thrilling jurisdiction.

Last, but not least, operators will feel our support from the get-go all the way to establishing themselves as a market leader. We are knowledgeable of the cultural and regional differences within Brazil and can address all localization needs before they arise.

Opinions

“Delasport stands on a solid foundation of experience, supplying Tier 1, Tier 2, and Tier 3 operators in highly regulated markets globally”, our CCO Filippo Ferri comments. ‘This makes Delasport fully equipped to assist operators navigating complex platforms or adapting to modern jurisdictional requirements, such as Brazil’s.’

Our own VP of Business Development Rosaire Galea Cavallaro adds:

‘It’s a great privilege to enter such a vast and exciting market with the confidence that we’ve gained at Delasport throughout the years. We’re looking forward to seeing our product in action in a new territory, achieving and maintaining solid margins for our partners, keeping the record of having double digit margins in sports betting and helping them scale with ease in both verticals to generate maximum revenue for their brands.’

The post Delasport Ready for Brazil Expansion first appeared on Delasport.

What are the new changes in the regulations? What will happen to the non-licensed operators, what will be the future of PIX usage in iGaming, and many other key questions will get their answers in the paragraphs to follow.

Table of Contents:

• Changes to the Regulatory Framework and Key Approaches
• Regulation Status
• Approved Operators and the Transition Period
• Judicial Rulings on Loterj Licensing
• Market Reactions and Future Challenges
• The SIGAP
• Certifications
• In Conclusion

Changes to the Regulatory Framework and Key Approaches 

Brazil’s iGaming industry has seen several critical updates in terms of both advancements and complications in the market’s regulation since our last Market Report in May 2024. The country is currently in a transition period and moving closer to formalizing the regulatory framework for its gambling sector. When the full regulation comes into force by January 2025, there will be significant changes affecting both online and land-based operators.  

• Localization 

To effectively capture the Brazilian market, operators must tailor their offerings to suit local player preferences. This includes providing customer support in Portuguese, integrating local payment systems like Boleto Bancário, and featuring sports that resonate with Brazilians, such as football, MMA, and basketball. Crafting promotions and content that align with Brazilian cultural values is critical for fostering player loyalty. 

• Mobile Optimization 

With over 78% of Brazilians using smartphones to access the internet, ensuring that platforms are optimized for mobile use is essential. A seamless mobile experience is crucial for attracting the country's young, tech-savvy audience. 

• Marketing and Sponsorships 

Partnering with well-known sports teams and public figures has proven to be an effective strategy in Brazil. For example, major football teams like Corinthians and Palmeiras have inked deals with sportsbooks, enhancing brand visibility. Additionally, operators should leverage social media to engage the audience and promote their offerings effectively. 

• Offering a Variety of Betting Options 

Football remains the top sport for betting in Brazil, followed by basketball and esports. To attract a wider audience, operators should offer a diverse range of betting options, including international sports leagues and esports, to cater to various interests among Brazilian bettors. 

• Responsible Gaming 

Adopting strong responsible gaming practices is vital for maintaining compliance and gaining player trust. Operators should provide tools such as self-exclusion features and betting limits, while also ensuring proper identity verification and age restriction protocols are in place. 

By concentrating on these areas—localization, mobile optimization, marketing, diverse betting options, and responsible gaming—operators will be well-positioned to gain substantial market share in Brazil's burgeoning iGaming industry. 

Regulation Status 

From June to October 2024, Brazil has continued refining the licensing rules for operators. Following the establishment of the regulatory body earlier this year – the Secretariat of Prizes and Bets (SPA) – the government enforced a deadline in September 2024 for operators to apply for federal betting licenses. The goal was to ensure that all operators wishing to operate during the transition period (October – December 2024) would be in compliance with the legal framework before the market fully opens in January 2025. 

In September, the Brazilian government published a Normative Ordinance No 1,475, prohibiting operators already active in the market that had not applied for a betting license from operating. This will be enforced between October 1st and December 31st. 

One of the more controversial issues surrounding Brazil’s iGaming regulatory framework has been taxation. Initially, Brazil proposed an 18% tax on GGR for operators, which, after negotiations, was reduced to 12%. However total taxation can increase to over 30% when additional taxes get applied (such as PIS, Gaming Monitoring Fee, COFINS and ISS).  

Approved Operators and the Transition Period in Brazil

By October 1st, the SPA issued a list of 89 approved operators, which it later updated, allowing 93 companies and 205 brands to continue functioning legally in the country. This approval process is considered critical for maintaining order in the market and ensuring that only authorized operators engage with the public. [source]

Some companies, however, remain excluded from the list, which has sparked a controversy in the iGaming business.
Players who are using non-approved platforms are given a grace period to withdraw all their funds before those platforms’ potential suspension. [source]

Judicial Rulings on Loterj Licensing in Brazil

In a pivotal ruling, Brazil’s Federal Regional Court decided that brands licensed by the Rio De Janeiro State Lottery (Loterj) would not be allowed to operate outside of Rio De Janeiro.
The ruling aligns with Brazil’s federal push to strengthen its control over the iGaming business in the country. However, Loterj maintains its position that its licensees should be allowed to operate outside the state’s borders, citing their belief in broader operational rights.
This legal debate adds a spark of complexity to the overall regulatory landscape, as it positions state autonomy against federal oversight. [source] 

Market Reactions and Future Challenges 

Looking back at the past years of uncertainty surrounding the legal framework, Brazil’s iGaming industry has been eager for progress. While the new regulations bring optimism for the market’s future, there are also concerns about certain provisions. The industry is closely monitoring developments related to taxation. As mentioned, initially the taxes were proposed at 18% but later lowered to 12%, and still, this is aside from all other additional taxes that compile to a significant amount. [source] 

The regulatory challenges that remain to be tackled include the exclusion of key operators and debates over state versus federal licensing.
With the full legal market set to launch in January 2025, the next few months will be critical as operators finalize their applications and Brazil’s government continues to address gaps in the regulatory process. [source]

The Brazilian Institute of Responsible Gambling (IBJR) has called on the government to reconsider its proposed ban on the use of the Pix payment system for betting transactions, citing the need for better regulatory clarity. [source] 

The SIGAP

Also known as the “Betting Management System”, a technological solution linked to the Ministry of Finance, developed with the objective of enabling the regulation, monitoring and inspection of the betting market in Brazil, based on the provisions of Law No. 13,756/2018 and Law No. 14,790/2023. Sigap works by receiving information about bets made on sporting events and bets made on online games. 

Through API, companies must transmit files containing information on bets, operators and bettors on a daily basis, including financial transactions linked to sporting events and information on bets and bettors of online betting games. Each file will be detailed and sent according to the frequency determined in the data model defined by the Ministry of Finance. 

Delasport has already developed and is currently testing its connection to the SIGAP, allowing it to be among the first ones to operate in Brazil. 

Certifications

Delasport has a long-standing testing partnership with GLI – Gaming Laboratories International, the leading certification laboratory of the gambling industry. On top of being GLI-19 and GLI-33 certified, Delasport’s entire turnkey platform solution (player account management system + sportsbook + casino aggregator + payment providers) is currently undergoing testing against Brazilian-specific technical requirements, with the aim of being the first platforms to be fully certified for Brazil before the opening of the market. 

In conclusion 

Amidst all the regulatory changes and implementation, Brazil is currently one of the most complex, but also prominent iGaming markets. This is why an experienced and knowledgeable partner like Delasport is essential when looking to expand to such key jurisdictions. 

At Delasport we’re not only ready with the required certifications but are keeping a close eye on every regulatory development in the country.  

As the government works through the remaining hurdles – particularly in resolving disputes over licensing and taxation – the market will continue to evolve, attracting both domestic and international attention. If you’re serious about your iGaming business, you should reach out to Delasport right away, so that you face Jan 1, 2025, fully prepared.  

The post Brazil: What Does It Take for Operators to Gain a Significant Market Share in the Land of Great Potential? first appeared on Delasport.