Pay4Fun, the first payment institution authorized by the Central Bank of Brazil (Bacen) to operate in the entertainment and sports betting segment, pointed out that the Brazilian market registered a sharp decline in transactions in January 2025. This was the month in which new regulations for the sector began.
During this period, the volume handled fell 76% compared to the monthly average for 2024, a result of the legal, tax, and operational requirements imposed by the legislation. Furthermore, the company revealed that in February, the decline exceeded 90%, a direct reflection of the adaptation phase to the new rules.
Betting market recovery accelerated from March onwards
By March, the decline had already narrowed to 22% compared to the same month the previous year. The pace of recovery intensified in the following months. In April, the volume moved grew 1,973%, and in May, it maintained the positive index with a 115% increase.
The information considers thousands of transactions carried out by platforms integrated with Pay4Fun and legalized in the country.
According to Pay4Fun, the initial downturn resulted from an unprecedented adaptation process. Users faced requirements such as submitting documents, facial recognition, and linking bank accounts, in addition to uncertainty about which platforms were legal.
For companies, the cost of licensing and new compliance obligations have led some operators to temporarily leave the country.
Leonardo Baptista, CEO and co-founder of Pay4Fun, described the initial decline as “a natural adjustment to the new reality.” He stated that the regulation brought order to a sector that operated illegally and separated legal companies from illegal ones.
“The market has shown that it is adapting, with platforms adapting their systems and processes to comply with the new rules, and this brings security to bettors and operators,” said Baptista.
User awareness, which began to favor legal platforms with the “.bet.br” domain, contributed to the recovery. Furthermore, the entry of major international operators increased competitiveness and confidence in the market.
With clearer rules and the formalization of large companies, the Brazilian online betting market is expected to register significant growth in 2025.
In summary, Pay4Fun projects an increase of between 20% and 30% in total volume by December, reinforcing the country’s potential to become one of the largest global markets in the sector.
About Pay4Fun
Founded in 2018, Pay4Fun was the first payment institution in the sports betting sector to be authorized by the Central Bank. Since then, the company has grown consistently and expanded its market presence.
In 2022, the company handled R$2.6 billion in transactions. That same year, it received the Best Payment Method award for Latin America at SAGSE 2022. It also won the title of Best Payment Method at the Brazilian iGaming Awards.
The positive performance continued in 2023. Pay4Fun obtained the RA 1,000 seal from Reclame Aqui, reinforcing its reputation. During this period, it ranked 3rd among the best financial services companies to work for, according to the GPTW ranking. Finally, it secured 2nd place at the SBC Awards in Barcelona in the payment innovation of the year category.
