iGaming in Brazil. A new phase for the industry and payments. What to expect in 2025?
Brazil’s iGaming market is on fire! By 2024, it’s projected to hit €0.55 billion, and by 2028, it could soar to €1.57 billion. One of the key drivers behind this rapid growth is PIX, Brazil’s instant payment system. Already used by over 90% of players, PIX makes deposits and withdrawals quick and secure, giving legal platforms a real edge.
PIX: Shaking Things Up
With 28.5 billion transactions annually, PIX has revolutionized payments in Brazil. The country now ranks second globally in instant payment usage, right after India. In the iGaming space, PIX has become the go-to payment method, leaving traditional cards in the dust.
New Rules, New Challenges
Starting in 2024, Brazil is rolling out stricter regulations for operators and Payment Service Providers (PSPs). Here’s what’s changing:
1. PSP Licensing: providers must now have a license to transfer funds internationally, limiting operators to sending only net profits abroad.
2. User Verification: bettors will need to pass biometric identity checks to enhance transparency.
3. Bet.br Domain: licensed bookmakers will use this domain to differentiate from offshore competitors.
4. Crackdown on Illegal Sites: over 2,000 websites have already been blocked, with Google and Meta on board to assist the government.
The Shadow Market
Shockingly, 91% of Brazil’s iGaming market is still operating illegally. Around 49 million players bet on unlicensed platforms, generating a staggering $5.1 trillion in wagers last year. Factors like a 15% tax on winnings and low average income (just $550/month) drive players to these platforms. Some major operators, like Betway, have even pulled out, shifting their focus to other regions, such as Africa.
What’s Next?
For companies ready to adapt, opportunities abound. Innovations like enhanced PIX processing and transaction automation can help operators thrive under the new rules. Betatransfer Kassa, for example, provides reliable solutions to navigate this challenging yet lucrative market. Brazil’s iGaming scene is tough, but the rewards are worth the effort!
