The global gaming industry is valued at $257 billion, with Brazil contributing 21% of all online gambling traffic, making its influence undeniable.

New regulations introduced at the end of 2023 marked a momentous shift in Brazil’s approach to gambling, emerging from the shadow of an outright ban in 1946 to the establishment of a fully regulated market.

The online Brazil betting industry is exploding, so we at Zimpler ran a survey to hear from Brazilian iGaming users. As specialists in secure and integrated account-to-account payments, we wanted to dig deeper into their experiences.

We aimed to revolutionize the market and help iGaming businesses thrive by understanding users’ habits, preferences, and the challenges they face with current payment systems.

This survey provides valuable insights to better cater to their needs.

Brazil betting landscape.

The journey toward regulating sports betting in Brazil gained momentum in 2018 with the legalization of sports betting. This opened the iGaming industry but left it unregulated until significant legislative breakthroughs arrived in 2022.

A major milestone was reached on December 30, 2023, when President Luiz Inácio ‘Lula’ da Silva signed Bill PL3626/23 into law. This legislation lays the foundation for Brazil’s federal sports betting marketplace.With legalized sports betting, Brazil is poised to expand into real-money gaming, including online and land-based casinos.

The approval of Bill 2234/22 on June 19, 2024, marks another critical step.This bill establishes detailed regulations for casinos, betting machines, bingo, and animal and horse racing.

Looking ahead, January 1, 2025, is a crucial deadline.By this date, any operator lacking a proper license will be considered unlawful, effectively pushing them out of the market.

While the new regulatory framework in Brazil requires iGaming operators to meet stringent compliance standards, it also promises the benefits of a well-regulated gambling environment.

Exploring the Brazilian iGaming market.

The Brazilian iGaming market has seen an astounding 250% growth over the past two years, underscoring its vast potential.

With online gambling revenue expected to reach $1.97 billion in 2024, Brazil is on the brink of a significant economic boost. The market is projected to grow at an impressive annual rate of 16.51% from 2024 to 2028, potentially reaching $3.63 billion by 2028.

The online casinos segment alone is forecasted to hit $1.11 billion in 2024. This rapidly growing sector presents substantial tax revenue opportunities, an advantage Brazil can’t overlook, especially given its recent economic challenges.

Another indicator of the market’s growth is the 360% increase in the number of new companies registered in Brazil between 2020 and 2022. 

Understanding how to cater to the needs of iGaming users has never been more important.

Insights from the survey.

Betting preferences in Brazil.

Football is the unrivaled king of sports betting in Brazil, with a dominant 66% of bettors favoring it. Among football enthusiasts, national championships are the top choice, with 62% of bettors preferring them over regional (20%) or international competitions (22%). Casino games come in second, attracting 42% of the betting crowd, while electronic games hold a smaller but notable share at 21%. Despite the excitement around global events like the World Cup, they capture only 10% of the betting interest.

Demographics play a significant role in betting preferences. While 80% of men bet on football, only 53% of women do the same, with women showing a stronger preference for casino games (49% versus 36% of men). Age also influences betting habits—young adults aged 18-24 are more active in casinos (53%) and tend to spend more, with 6% betting over R$1,000 per month. In contrast, older bettors (over 55) are less engaged, with only 24% betting on casinos and none exceeding R$1,000 in monthly wagers. Men generally bet more frequently than women, with 39% betting more than once a week compared to 30% of women.

Payment preferences.

Pix dominates Brazil’s betting landscape as the preferred payment method, with around 80% of bettors using it for deposits and withdrawals. Its appeal lies in the instant, seamless transactions facilitated by the Brazilian Central Bank. In contrast, credit cards and virtual credit cards, used by 24% of bettors, face regulatory challenges. Since April 2024, the Brazilian Ministry of Finance has banned credit cards for betting to prevent indebtedness, and cryptocurrencies are also excluded due to identification requirements.

For foreign operators entering the Brazilian market, integrating Pix is crucial. It requires API connections, technological integrations, and facial recognition technology to enhance security and prevent fraud. The new regulations also impose significant taxation, including a 12% tax on gross gaming revenue, and enforce strict compliance with Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations. These measures are designed to create a well-regulated, financially stable industry, making compliance essential for maintaining integrity and success in the market.

Challenges in processing payments.

Payment processing is a critical element of any business, but it often comes with its own set of challenges.

Key issues include security concerns, the impact of payment fraud, integration difficulties, reconciliation problems, chargebacks, cross-border complications, compliance hurdles, and managing costs. These challenges stem from the complexity of the process and can lead to frustrating transaction delays.

Operators navigating the evolving Brazilian betting landscape will need to overcome these challenges by investing in advanced technologies for identity verification, ensuring compliance with licensing requirements, and adapting marketing strategies to meet advertising restrictions.

Zimpler’s payment solutions: Enhancing the iGaming experience.

Zimpler takes the hassle out of payment processing, offering seamless options that significantly enhance the betting experience.

Advanced automated risk monitoring

Operating in Brazil’s regulated market requires robust systems, and Zimpler’s Supportal system delivers advanced automated risk monitoring.

It offers real-time transaction oversight, tackling complex challenges by:

• Sending Alerts: Notifying operators when users attempt to use multiple bank accounts for transactions.
• Preventing account switching: Restricting the use of different bank accounts for deposits and withdrawals.
• Monitoring complex transactions: Capturing and verifying the legitimacy of high-frequency or unusually large transactions.

Zimpler provides a robust and adaptable payment solution designed specifically for the iGaming industry, seamlessly integrating with both desktop and mobile platforms through its flexible API. This ensures a smooth and engaging user experience across different devices and geographical regions, thanks to its international reach and multi-currency support. 

Combining European regulatory expertise with deep local insights into the Brazilian market, Zimpler harnesses the power of Pix, Brazil’s leading instant payment technology, to offer rapid, secure, and highly preferred payment options. 

Zimpler’s solutions are customizable to align with your business brand and are supported by a team of local experts who bring over a decade of experience in the iGaming sector. 

This ensures not just superior payment flows, but also a long-term partnership focused on service excellence. Furthermore, as Brazil’s iGaming market evolves with new regulatory and licensing challenges, Zimpler stands ready to guide operators through the complexities, positioning them to capitalize on the substantial opportunities within this growing market.

Conclusion.

As Brazil’s iGaming market rapidly expands, operators face both exciting opportunities and significant challenges, including the need for seamless payment processing, regulatory compliance, and a top-notch user experience. Zimpler is uniquely positioned to help operators navigate these complexities, combining European regulatory expertise with local Brazilian knowledge. Our cutting-edge payment solutions, powered by Pix and advanced risk monitoring, ensure that platforms not only meet but exceed user expectations. As the market continues to grow and regulations become stricter, Zimpler remains a trusted partner, ready to help operators seize new opportunities and shape the future of iGaming in Brazil. 

Join the payment revolution.

The information contained in this post is intended for informational purposes only, and should not be relied upon for professional advice of any kind. Zimpler does not make any representation or warranty as to the completeness or accuracy of the information, and assumes no liability or responsibility that may result from reliance on such information.