Brazil’s betting landscape is undergoing a transformation of historic proportions, as lawmakers and industry leaders grapple with the fallout of a market that has exploded in size and complexity. The numbers are nothing short of jaw-dropping: according to the Federal Revenue Service, the sports betting and iGaming sector has surged by an astonishing 17,962% in recent years. This meteoric rise has catapulted Brazil to the forefront of the global betting industry, but it’s also brought with it a pressing need for comprehensive regulation and oversight.
On November 29, 2025, Federal deputy Fernando Marangoni stepped forward with Bill No. 5,982/2025, a legislative proposal aiming to standardize and unify the rules for state and municipal lotteries across Brazil. His bill, known as the Legal Framework for State and Municipal Lotteries, lays out a detailed roadmap for governance, licensing, integrity, technology, player protection, and the allocation of resources for lotteries at the subnational level. The timing couldn’t be more critical, as the country’s gambling sector faces unprecedented scrutiny and opportunity.
Brazil’s betting boom didn’t happen overnight. For decades, the market languished in a regulatory grey zone, with consumers and operators alike navigating a landscape marked by uncertainty, limited transparency, and the ever-present risk of illegal activity. But as digital access widened, mobile adoption soared, and sports culture became even more deeply woven into the fabric of daily life, the sector found fertile ground to flourish. Sponsorship deals with major football clubs and high-profile televised events only fed the public’s appetite, pushing online platforms into the mainstream and fueling a level of engagement previously unseen.
The 17,962% growth figure, reported by the Federal Revenue Service and highlighted by iGaming Brasil, is more than just a statistic—it’s a testament to the sector’s transformation from latent potential to a powerful economic engine. The surge encompasses total financial flows in the industry: deposits, withdrawals, and the sheer volume of bets placed. As these platforms ballooned in popularity, they created thousands of new jobs in technology, marketing, compliance, data analysis, and customer support. The ripple effect has extended far beyond entertainment, with the betting industry emerging as a promising new source of tax revenue for both federal and state governments.
Once regulation is fully operational and enforcement stabilizes, these funds are expected to bolster vital public services such as education, healthcare, and security. But the stakes are high. Without clear and comprehensive rules, the risks of fraud, illegal operations, and murky oversight loom large. That’s why Marangoni’s bill is so significant: it seeks to bring order to a sector that’s grown almost too quickly for its own good.
Under the proposed framework, states and municipalities currently operating lotteries would be required to adapt their operations to meet new national norms. Lottery operations could be carried out directly by public entities or delegated to the private sector through bidding, concessions, accreditation, or public-private partnerships, with contracts capped at 15 years. Operators would need to demonstrate a local presence, financial capacity, the suitability of partners and executives, compliance with tax and labor laws, and a secure, auditable technological infrastructure. Notably, conflicts of interest with sports entities are explicitly prohibited to maintain the integrity of the sector.
The bill also introduces the concept of “lottery advisors”—intermediaries allowed to acquire tickets, store receipts, deliver prizes, and operate distribution platforms or networks. However, these advisors do not replace the authorized operator, who remains ultimately responsible for the integrity and legality of the service. Player protections are front and center: the bill prohibits participation by minors, the offering of credit for betting, bonuses that incentivize gambling, and advertising aimed at children or that presents gambling as a source of income. Operators are required to provide self-limitation mechanisms, alerts for compulsive behavior, self-exclusion options, and educational materials to help prevent problem gambling.
On the technology front, the framework mandates that all systems be fully auditable, and it encourages the use of blockchain technology to ensure traceability. Regulators would be granted continuous and secure access to these systems, with oversight handled by the public entity that owns the service, courts of accounts, and the Public Prosecutor’s Office. Revenue collection rules are equally stringent: income from lotteries must be allocated exclusively to areas of public interest such as health, education, social assistance, sports, security, culture, tourism, innovation, and technology. Each jurisdiction would be required to create a Special Lottery Management and Guarantee Fund, financed with 0.05% of gross revenue, and any prizes left unclaimed after 90 days would be split between education and civil defense funds. Transparency is a recurring theme, with quarterly financial and operational reports required from all operators.
The bill’s payment provisions are also notable. All payment methods must integrate with Pix, Brazil’s powerful instant payment system, to guarantee full traceability and allow regulators direct access to operational accounts. This focus on scalable, secure infrastructure is echoed by industry leaders, who stress that supporting a market growing at nearly 18,000% requires high-performance systems, real-time risk management tools, anti-fraud technology, and robust data architecture—especially during major sporting events, when activity spikes dramatically.
Industry voices have been vocal about the need for responsibility and robust structure in the face of such rapid expansion. Natalia Nogues, CEO of Control F5 and recently named Leader of the Year at the SBC Awards 2025, remarked, “The 17,962% growth showcases the passion of Brazilians for sports and their strong demand for new digital entertainment options. No market this size can exist without solid foundations, though. Regulation is key to protect consumers, deliver integrity, and turn financial volume into stable revenue for the country.” Flavia Merlo, Marketing Manager at Control F5, echoed this sentiment: “We are in a transition moment where robust compliance and technological infrastructure are the true differentiators. Control F5 works to ensure that new entrants and established operators grow within strict standards of safety and governance.”
Both leaders agree that the future of Brazil’s betting market hinges on the industry’s ability to create a secure, transparent, and responsible environment—one that’s underpinned by cutting-edge technology and a commitment to regulatory best practices. Law 14.790/2023, which regulates fixed-odds betting, has already set the stage for a new era, aiming not just to boost tax collection but to create a level playing field, combat money laundering, enhance integrity, and protect consumers from harm. Operators hoping to enter or expand in the Brazilian market must now adapt swiftly to new licensing requirements, compliance demands, and system integrity standards.
As Brazil stands at this crossroads, the challenge is clear: how to convert explosive growth into long-term sustainability, safety, and global leadership in the iGaming market. With the right regulatory framework and infrastructure in place, the country is poised to become one of the world’s most powerful betting markets—if it can balance innovation with responsibility.
