Brazil’s hotly contested iGaming market is estimated to reach over $1.97 billion in 2024—even though gambling is still largely outlawed in the country.
Now, new changes in legislation may offer hope to Brazilian gaming enthusiasts who want to make local sports bets and enjoy casinos closer to home.
In this article, we look at the history of gambling in Brazil and how modern government controversies affect the fight to regulate a market with massive potential earnings.
History of Gambling in Brazil
Gambling games using dice had been a part of Brazilian culture for centuries— that is, until the 1940s.
This is when Carmela Teles Dutra, wife of then-president Eurico Gaspar Dutra, convinced him to issue a blanket ban on gambling due to her religious beliefs.
By 1946, the country had prohibited nearly all forms of gambling at casinos. The only game allowed was poker, considered a game of skill rather than chance.
In the 1970s, locals were given some relief from the complete ban with the establishment of a national lottery.
The lottery was immediately popular and is still going strong today, now administered by the state bank Caixa Econômica Federal.
While betting on horse races became legal in the mid-1980s, the ban on casino games held steady until 1993.
That year, the Zico Act was signed into law, making it legal for casinos and bingo halls to operate.
Practically overnight, the industry welcomed an enthusiastic influx of players and operators.
Only a few years later, to the dismay of everyone involved, the 1998 Pele Act repealed the changes made in 1993.
Once again, access to casino games was revoked, and commercial bingo became illegal—although bingo games operated by charities were still allowed.
Online Gambling
By the 2000s, gambling in Brazil was in an awkward position. Even as placing wagers remained completely outlawed nationally, the advent of online casinos offered a ready alternative.
As the online gaming industry grew, providers in other countries began expanding their services to Brazilian players.
The number of locals gambling online has exploded—and these days, Brazilians are estimated to spend almost $1.5 billion annually playing casino games online.
Sadly, while their hard-earned cash has flowed into online gaming, the national economy has been experiencing a severe downward spiral.
In time, the Brazilian government realized what was happening and began talks to reclaim this lost revenue stream.
With the economy tanking, it would be a significant gain if locals’ money was spent on gambling services within the country.
Betting
In an attempt to bring spending back home, Brazil’s Ministry of Finance introduced a new regulation (Law No. 13,756/2018) on a four-year trial basis to allow online and in-person betting on fixed-odds sports wagers.
With this temporary rule, the government hoped to test whether wagering on sports could be regulated on the ground and built into a sustainable industry.
Sports betting took off immediately, with locals enthusiastically placing bets on the most popular events, including soccer matches and mixed martial arts fights.
Fantasy betting was not accounted for in the trial regulation and was considered legal but unregulated.
Once the four-year period expired in 2022, the regulation remained in place but moved from the oversight of the Ministry of Finance to Parliament.
Here, it was changed to a legislative bill and written officially into law.
Birth of an Industry
Although allowing sports betting boosted the country’s economy and provided a safe platform for players, some politicians opposed the new law due to religious or personal views.
Members of the Evangelical Caucus were among those who most strongly opposed the bill.
Citing concern over the mental health risks associated with gambling, the group maintains that leaving the floodgates open to sports betting will create a morally and legally corrupt industry.
However, despite their concerns, the Brazilian iGaming industry seems to be on the brink of a new era.
The Associação Brasileira de Defesa da Integridade do Esporte (ABRADIE) was founded in 2023 to preserve the integrity of sports betting in the nation.
The group is now developing a licensing structure so that operators can provide their services in a regulated and audited environment—good news for both the government and the people of Brazil.
Conclusion
While there have been some productive moves toward legalizing gambling in Brazil, the country still has a long way to go.
Given the back and forth between political parties, Brazilian gamblers may feel uncertain about the stability of their bets and winnings with local providers.
Players can still place bets and search for the best overall casino for craps online, but they may prefer to stick with foreign providers—at least until the government can agree on a clear course of action regarding gambling in Brazil.