From Chaos to Regulation: Brazil's Rise as a Global Leader in the Betting Industry

New laws promise order and big bucks in Brazil, but soaring addiction and drained wallets tell a different story. Can regulation save the game, or will the house always win?

This is a guest article for the Sports and Crime Briefing by Augusto Cesar Piaskoski, Head of Legal and Compliance at Apostou (BETBR), specialist in integrity within the sports and betting sector.

Brazil's betting market has undergone a dramatic transformation in recent years, evolving from a largely unregulated space into a structured and promising industry. This shift not only provides legal security for investors and operators but also opens new opportunities for sports development, particularly football, which is deeply intertwined with the betting sector. However, it has also led to significant societal challenges, including addiction, financial distress, and regulatory tension.

The Path to Regulation

The regulatory journey began in 2018 with the passing of Law No. 13,756/2018, which legalized fixed-odds sports betting in Brazil. However, the absence of proper regulation for five years created a legal vacuum, allowing operators to function in a gray area. This lack of oversight led to high-profile scandals, most notably Operation Maximum Penalty, which exposed match-fixing schemes in Brazilian football. Investigations revealed that players were paid to manipulate games by committing specific actions, such as forcing penalties or receiving yellow cards, underscoring the urgent need for regulation.

In response, the Brazilian government took action, introducing Provisional Measure 1,182 on July 24, 2023. Provisional measures in Brazil carry the force of law and are enacted by the President in situations of urgency. This measure provided emergency mechanisms for the sector until November 2023, paving the way for Law No. 14,790, enacted on December 29, 2023. This law established a solid regulatory framework, assigning the Ministry of Finance the role of overseeing and regulating the industry, culminating in the issuance of specific regulations in 2024.