Udo Seckelmann, a professional gambling lawyer at Bichara e Motta Advogados, predicts that the first year of Brazil’s legal online gambling market will be a year of regulatory interpretation and significant integration.
He also believes that public opposition to gambling is influencing SPA’s decisions.
Seckelmann, head of gambling and cryptocurrency at Bichara e Motta Advogados, told iGB in an interview that he expects many regulatory changes in the first year of Brazil’s online gambling operations as the industry adapts to new rules.
He anticipates that 2025 will become the “year of integration” for the Brazilian gambling industry as regulatory frameworks and expectations are interpreted and finalized.
“We can foresee that this year there will be many changes and integrations in Brazil, and the understanding or interpretation of SPA will become more unified. [Integration] what is feasible, what can be allowed, what cannot be allowed, and the final changes we will implement,” Seckelmann told iGB.
“For example, considering our strict scrutiny of the industry, Brazilian regulatory bodies or other public institutions may require further restrictions on advertising or an increase in gambling taxes.”
Brazil launched its regulated online gambling market on January 1, 2025, and issued licenses to a few operators. With a population of over 200 million and a strong sports culture, Brazil is expected to become one of the top gambling nations in the world.
The regulatory body, the Gambling and Betting Office (SPA), issued 14 full online gambling licenses on January 1, while more than 50 companies received temporary licenses after completing technical certifications and meeting other compliance specifications.
International giants like Bet365 and Betsson have joined local companies such as Aposta Ganha and Rei do Pitaco.
However, despite the evident optimism in the market, the industry also faces challenges from public concerns about rising addiction levels and operational difficulties such as KYC compliance.
Public Perception of Gambling in Brazil
Seckelmann mentioned that part of the problem lies in the negative perception of the gambling industry in some parts of Brazil, which faced a wave of criticism in the second half of 2024.
Therefore, improving this perception will be key in 2025, while also pushing against the overregulation that has led to channelization issues in European markets like Germany.
“I think the entire industry is trying to show the public that ‘we are not the bad guys, we are the good guys willing to comply with laws and regulations,'” Seckelmann continued.
“But at the same time, you can’t just simply raise taxes and increase restrictions because that doesn’t work. If you analyze other jurisdictions, you’ll find that it doesn’t work. You have to be careful, and I think operators will invest in PR this year to prove that it doesn’t work.”
Negative Narratives Impacting Politicians and Regulators
The pressure from the public in late 2024 partly stemmed from a controversial study in the retail sector, which blamed gambling for eroding retail profits and affecting consumer spending on healthcare and food.
Subsequently, many political proposals were introduced to limit operators’ activities. A bill submitted to the Senate even proposed a complete ban on gambling. Seckelmann believes that these actions are heavily influenced by the retail study.
Seckelmann warned that this narrative is affecting the decisions of gambling regulators.
“We are in the midst of a narrative battle, where Brazil’s retail sector and other economic sectors claim, ‘Look how much money players have spent in the gambling industry,’ but they don’t take into account the winnings they received,” Seckelmann added.
“Thus, the public thinks that this money is all spent by Brazilian gamblers and then lost. But that’s not the case.
“Of course, the consequence of doing this is to push public opinion, influence the opinions of the People’s Congress, and sometimes even influence the opinions of regulatory bodies.”
