Brazil’s newly regulated iGaming market is facing both rapid expansion and sudden regulatory headwinds, as global gaming companies and government policymakers shape the country’s digital betting future. On December 2, 2025, German slot developer Gamomat announced its entry into Brazil’s fast-growing market through a partnership with Bragg Gaming Group, marking a significant milestone for the company and the broader industry. The move came hot on the heels of sweeping regulatory changes that are poised to reshape the online gambling landscape—and not everyone is celebrating.
Gamomat’s arrival in Brazil is no accident. The company, known for its suite of proprietary slot games, selected titles for the Brazilian market after what it described as “extensive research into Brazilian player behavior and content preferences.” According to Sebastian Reddig, Chief Strategy Officer at Gamomat Development GmbH, this expansion is more than just another business deal. “Entering the fast-growing regulated Brazilian iGaming market is a wonderful achievement for the company. Brazil is a booming market, and we are proud to bring Gamomat’s catalogue of in-house content to Brazilian players, marking a new era for the business,” Reddig said, as reported by iGaming Brasil. The company’s Brazilian debut is a part of its broader global growth plan, with similar moves seen in other newly regulated markets.
But even as international brands like Gamomat celebrate their Brazilian breakthrough, the country’s federal government has moved decisively to limit who can participate in the online betting boom. Effective Monday, December 1, 2025, all beneficiaries of Bolsa Família and Benefício de Prestação Continuada (BPC)—two of Brazil’s largest social assistance programs—have been blocked from accessing online gambling platforms. The measure, which was quickly implemented, is being framed as an essential safeguard for social welfare funds. Yet, it’s clear this decision will have ripple effects throughout the industry.
The roots of this policy lie in Brazil’s courts and regulatory agencies. The Ministry of Finance acted after a unanimous determination by the Supreme Federal Court (STF) and strong recommendations from the Federal Court of Accounts (TCU). The STF ruled that social assistance funds must be protected from online gambling activity, emphasizing that these benefits are essential for guaranteeing basic subsistence to low-income families. The TCU, in a report published in early 2025, underscored an “elevated risk” of fraud involving beneficiary accounts linked to gambling. The urgency of these findings led to the swift establishment of a formal blocking mechanism that all licensed platforms must now enforce.
So, how does this blocking system actually work? The federal government compiled a comprehensive registry of CPFs—the Brazilian taxpayer identification numbers—belonging to Bolsa Família and BPC recipients. This list now serves as a mandatory “excluded registry” for all licensed betting platforms. Operators must remove existing accounts linked to these CPFs, block any future registration attempts, reject deposits or bets from flagged users, and refund any available balances to players who find themselves suddenly locked out. It’s a sweeping measure, designed not only to prevent the misuse of social funds but also to create a verifiable compliance chain for operators, who are now subject to strict oversight.
The scale of this policy is hard to overstate. Bolsa Família alone reaches around 19 million families across Brazil, providing a minimum transfer of R$600 per household to people living on less than R$218 per month. The BPC program pays a minimum wage every month to seniors and people with disabilities who meet income requirements. With such a large portion of the population now excluded from online betting, the industry faces a dramatic contraction. Industry representatives estimate that up to 20% of active users could be removed from the market as a direct result of the new rules—a figure that underscores the significant presence of low-income bettors in Brazil’s digital gambling sector.
For operators like Bragg Gaming Group, which recently partnered with Gamomat to bring new content to Brazilian players, the timing of these regulatory changes presents both challenges and opportunities. The immediate consequence is a likely decline in traffic, deposits, and long-term engagement on betting platforms. The financial impact is still uncertain, but the short-term contraction is expected to be significant. Despite these headwinds, some industry leaders see the changes as part of a necessary evolution toward a more responsible and sustainable market.
Policymakers, for their part, argue that the restrictions are not just about protecting government coffers—they’re about social responsibility. By ensuring that public assistance funds are used strictly for basic needs, the government hopes to shield vulnerable families from the risks associated with gambling. Officials also highlight the policy’s potential to reduce fraud, noting that beneficiary accounts had been used not only for personal bets but also for some illicit operations. In this sense, the new rule is being cast as both a consumer protection tool and an anti-crime measure.
The debate over the policy’s merits is far from settled. Advocates for the regulated market warn that the sudden exclusion of such a large user base could destabilize the industry, forcing platforms to adapt quickly or risk losing ground to unlicensed competitors. They also caution that the long-term impact on jobs, tax revenue, and investment could be substantial if the market contracts too sharply. Yet, government officials remain steadfast, insisting that the measure is a necessary response to a pressing social issue.
Meanwhile, the regulatory spotlight isn’t limited to Brazil. In Europe, the Swedish Gambling Authority (Spelinspektionen) has opened a supervisory review into Gamomat Distribution GmbH to assess compliance with local rules. Specifically, Swedish law prohibits licensed software suppliers from providing gambling software to operators lacking the required Swedish license. While this review is unrelated to the company’s Brazilian expansion, it’s a reminder that global gaming companies must navigate a complex and ever-changing regulatory landscape wherever they operate.
As Brazil’s iGaming market continues to evolve, the coming months will be crucial. Operators will need to adjust to a leaner pool of users, while regulators and policymakers monitor the effects of the new restrictions. The country’s experience may serve as a test case for other markets wrestling with the balance between economic opportunity and social responsibility in online gambling.
The story of Brazil’s online betting sector is still being written, but one thing is clear: the intersection of rapid industry growth and robust regulation is creating a market that’s as dynamic as it is unpredictable.