The Brazilian sports betting market has entered a new phase with the new regulations that came into effect in January of this year. The country is undoubtedly a powerhouse for the gaming industry and the new rules are expected to pave the way for the growth of the sector. The changes included the requirement for licenses for companies to operate and the exclusive adoption of Pix as an accepted payment method.
This excludes cash, credit card and cryptocurrency transactions, but despite this initial limitation, several experts who attended the Payment Expert Summit in Rio de Janeiro believe that crypto bets will be inevitable in the future. This optimistic view is strengthened by the latest statistics.
According to Triple A’s “Crypto in Brazil” survey, around 4.9% of the Brazilian population (more than 10 million people) owned some type of digital asset. This number continues to grow, showing that interest in Bitcoin and in new cryptocurrencies that emerge every year is not temporary. Brazil is in an excellent position in the world ranking when it comes to adopting crypto assets.
Featured in international reports as one of the countries with the highest number of active users in virtual trading, it is expected that digital currencies will be implemented in several other sectors, such as sports betting.
Impact on the regulated market
With the entry into force of the new betting legislation, the country has left behind a grey, unregulated market, giving way to a legalized and more transparent ecosystem. The change, however, has brought challenges for companies that had been operating with cryptocurrencies before the temporary ban. One example is the bookmaker Stake.
The Country Manager for Brazil, Thomas Carvalhess, revealed at the event that the ban on crypto payments led to a 20% drop in the company’s betting volume. According to him, some of the players who prefer cryptocurrencies are VIP bettors and are used to fast and decentralized transactions.
Although this setback was significant, Carvalhess remains confident in a favorable future for cryptocurrencies. He emphasizes that the popularization of these assets in the country, as well as the public’s greater familiarity with the technology, may facilitate the return of crypto operations, as soon as financial and regulatory authorities finalize the necessary legal framework.
Crypto adoption in Brazil
Market studies indicate that Brazil will become one of the largest gambling hubs in the world by 2028, potentially generating up to US$34 billion (around R$197.3 billion) in transactions, according to market intelligence firm H2 Gambling Capital. In the area of cryptocurrencies, the Central Bank of Brazil continues to move forward with the regulation of virtual assets.
In addition to public consultations, they are also developing their own digital currency, Drex, which could accelerate the country’s integration into global financial innovations. According to the Central Bank, the initiative aims to promote greater financial inclusion and digitize part of the transactions made in reais. On the other hand, the use of private cryptocurrencies for betting is still under evaluation by regulatory bodies.
The high volatility of crypto assets and concerns about security and money laundering are some of the obstacles that make the Secretariat of Prizes and Bets act cautiously on the subject. Lawyer Udo Seckelmann, who heads the Gaming and Crypto Department at the Bichara & Motta law firm, estimates that in one or two years the country could grant the first formal authorizations for crypto institutions to operate in the gaming sector.
