The leading provider of regulatory and business intelligence, powering the global payments and gambling industries, Vixio Regulatory Intelligence, released a new report, highlighting the potential of the online gambling sector in Brazil. Released just in time for the start of the ICE 2024 convention in London, the new Brazil Online Outlook report analyses the potential of the iGaming vertical in the country.
In its report, Vixio delves into the online gambling regulations in Brazil, analyzing strategic processes related to compliance and licensing. Vixio’s report also explores the competitiveness of the iGaming sector in the country along with possible growth opportunities through lotteries or advertising.
Notably, Vixio predicted the possible development of the Brazilian online gambling sector. The company’s report estimated the iGaming vertical in the country may generate $3.7 billion by its third year of operation. Moreover, by year five, the online gambling sector in Brazil is estimated to generate a staggering $4.9 billion.
Back in December, lawmakers in Brazil added a provision for online gambling as a part of legislation that seeks to legalize sports betting in the country. This marked an important step, paving the way for the possible legalization of iGaming activities.
The Success of the Market Is Contingent on Its Regulation
Yet, according to Vixio, the success of the online gambling market is subject to a number of conditions that are yet to be determined. For example, if iGaming operators need to ink deals with local partners the market’s attractiveness may be impacted. A major factor is also the taxation of online gambling, along with license and other fees that may apply for iGaming operators. Whether or not Brazil’s online gambling sector would permit bonuses or other incentives is also imperative when it comes to the attractiveness of the sector.
Mike Woolfrey, Vixio’s CEO, revealed that the market in the country has been a focus for the company over the last 15 years. He said that it is expected that many companies are thrilled to enter the online gambling market in the country, considering the “series of false starts in terms of expansion of land-based casinos and bingo halls over recent years.”
James Kilsby, Vixio’s chief analyst and a co-author of the report, spoke about the importance of the online casino legislation in Brazil. He explained that this legislation “should enable Brazil to realize its potential as a major market on a global scale, with the country set to join the UK and Italy among the largest regulated online gambling jurisdictions in the world while surpassing the likes of Australia, France and New Jersey in the near-term.” Finally, Kilsby outlined that the regulation of the sector will play an important role in its growth and attractiveness.