Brazil Grants New Esports Betting Operator Licenses

The Secretariat of Prizes and Bets (SPA) in Brazil has approved licenses for five additional operators to provide esports betting services, expanding access to regulated wagering in Latin America's largest market. The new licensees—Betsson, Novibet, Kaizen Gaming, Rei do Pitaco, and Galera.bet—join over 100 firms authorized under the 2025 federal betting framework, enabling bets on major titles like Counter-Strike 2, League of Legends, and Valorant. This batch of approvals, announced on September 25, 2025, prioritizes integrity and consumer protection, requiring ESIC integrations and the implementation of responsible gambling tools.

With Brazil's esports audience exceeding 50 million, the licenses unlock potential for R$2 billion in annual esports handle, fostering competition among operators while aligning with global standards to curb unregulated offshore activity.

Key Takeaways

• Operators Expand Offerings: New entrants can launch diverse bet types, including live props and futures, potentially increasing market share by 15% through targeted promotions in high-engagement titles.
• Regulators Enhance Oversight: Mandatory data sharing with ESIC and SPA's monitoring hub strengthens anti-match-fixing measures, reducing risks in regional tournaments like CBCS.
• Bettors Access Safer Markets: Licensed platforms ensure fair odds and quick payouts, with projections for 25% growth in mobile wagering amid Brazil's 5G rollout.

Brazil's betting landscape has evolved rapidly since the January 2025 enactment of Law 14.790, which legalized fixed-odds wagering and imposed a 12% GGR tax. The SPA's latest approvals follow rigorous evaluations, including financial stability checks and tech audits, to ensure compliance with integrity protocols. Betsson, already active in traditional sports, plans to integrate Oddin.gg feeds for real-time CS2 odds, while Novibet targets LoL markets with Riot-endorsed data.

This expansion addresses prior gaps in esports coverage, where unregulated sites captured 40% of the volumes, according to H2 Gambling Capital estimates. For international operators, it offers entry into a market forecasted to hit $15 billion overall by 2027, with esports contributing 10%. Local firms like Rei do Pitaco benefit from cultural ties to events such as the Liga Brasileira de Free Fire, enhancing bettor engagement through localized interfaces.

Implications for the ecosystem include heightened competition, prompting incumbents like Bet365 to innovate with features like AI odds adjustment. ESIC's role amplifies, as licensees must report suspicious patterns within 24 hours, mirroring UKGC standards. In neighboring regions like Argentina and Mexico, this could accelerate the development of similar frameworks, creating a unified Latin American betting corridor.

"These licenses represent a milestone in responsible growth," stated SPA Secretary Regis Dudena in the announcement. Tournament organizers, including Gamers Club, anticipate increased sponsorships from compliant partners, with BLAST's Brazilian events seeing a 20% handle uplift post-regulation.

The move underscores the integration of esports betting into mainstream gambling, prioritizing sustainability over rapid growth. Operators investing in education campaigns report an 18% higher retention rate, according to industry analytics. As 2026 majors approach, Brazil is poised to become a hub for innovative wagering, benefiting stakeholders across the value chain.

Sources: SBC News