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The igaming market opening alongside sports betting in legislation in Brazil enabled new avenues for engagement and audience growth for operators looking to expand into the region. 

Nonetheless, it’s an entry that thus far is a long way from simple, as operators are challenged with the unknown when it comes to regulatory frameworks. 

According to Vixo’s Chief Analyst James Kilsby, the clear benefits of being an early-mover into the Brazilian market are also leading to one of the key challenges for operators. 

When questioned on where he believes the obstacles currently lie during a recent interview with SBCNews, he said: “One challenge for operators is having to move forward with a licensing application with haste due to the clear advantages of submitting an application with the 90-day window rather than waiting and having to switch off current operations from the start of January 2025, while at the same time not having a full picture of what the Brazilian regulatory regime will ultimately Entail.”

He emphasised that moving forward there is a real need for clarity in the market, as future regulation continues to evolve and frameworks are adapted to ensure safety and stakeholder growth. 

“Future regulatory ordinances and other documents should provide greater clarity on critical issues such as the requirement to have a ‘Brazilian’ owning at least 20 percent of the operator’s share capital, the scope of permissible online casino games, and which forms of bonuses will be allowed through loyalty programs available via loyalty programs”, Kilsby continued.

“All of those questions, among others, will be fundamental to informing operators’ strategies for the Brazilian market.”

An extra level of clarity is also needed when it comes to marketing guidelines for the Brazilian market, looking ahead, he stated: While there are likely to be some additional rules clarified through forthcoming ordinances, Brazil’s regulatory regime is not overly restrictive when it comes to advertising and licensed operators will generally be able to advertise their products widely, subject to established international best practices that have now been incorporated into the advertising code applied by advertising self-regulatory body CONAR.

“For instance, this means that operators will not be able to advertise to minors, offend the country’s beliefs or traditions, or present gambling as socially attractive or a solution to financial problems.

That being said, there is real optimism from Kilsby for the Brazilian market and the significant opportunity it presents – citing that it could eclipse the engagement of many more mature European markets. 

Kilsby added: “Brazil’s regulated market has the potential to become one of the largest globally and surpass more mature markets like Australia and France in large part because of the decision of lawmakers to legislate for online gaming in addition to sports betting, which is not the case in France or Australia as things stand. 

“Based on population size, there is also more scope for online gambling to be adopted by recreational players and thus for participation to grow in a less mature market like Brazil.”