Brazil Launches National Esports Regulation Consultation

Brazil's Secretariat of Prizes and Bets (SPA) has initiated a public consultation on integrating esports into the nation's regulated betting framework, aiming to enhance transparency and integrity in a market projected to exceed BRL 10 billion annually by 2026. The process, launched on November 12, 2025, invites input from operators, publishers, and stakeholders until March 5, 2026, to shape rules covering licensing, data sharing, and anti-match-fixing measures. This step follows the legalization of online betting on January 1, 2025, positioning Brazil as Latin America's largest esports wagering hub and signaling a blueprint for emerging markets in Asia and Africa.

The consultation addresses the rapid growth of esports betting, where titles such as League of Legends and Counter-Strike dominate, drawing over 8 million active bettors in Brazil alone. By embedding esports within the federal 'Bets' ordinance, SPA aims to unify fragmented state-level operations, including Rio de Janeiro's Loterj model, under a single National Betting System, slated for rollout in Q4 2026. National Secretary Giovanni Rocco highlighted the initiative's focus: "This dialogue will forge safeguards that protect players while fueling innovation in our vibrant esports ecosystem."

• Regulatory Standardization: Operators benefit from clear federal guidelines, which reduce compliance costs by up to 25% and enable seamless expansion into Tier 2 tournaments.
• Integrity Boost: Mandatory reporting of suspicious wagers, aligned with IBIA standards, could cut match-fixing risks by 40%, fostering trust among EU and Australian partners.
• Market Expansion Opportunities: Bettors gain access to verified platforms offering 30+ esports markets, with publishers like Riot Games poised to deepen local integrations.

Brazil's esports betting sector has experienced significant growth since legalization, with gross gaming revenue reaching BRL 4.5 billion in the first nine months of 2025, according to iGaming Business data. Previously, unregulated offshore sites captured 70% of wagers, exposing bettors to fraud and limiting tax inflows. The SPA's consultation builds on this momentum by addressing key gaps, including esports-specific licensing, which requires operators to integrate real-time odds feeds from publishers such as Valve and ESL; player protection tools, including self-exclusion databases; and cross-border data protocols to combat syndicates targeting Latin American events.

For operators licensed under the Ministry of Finance, this means navigating a hybrid model where federal oversight harmonizes with state lotteries, potentially unlocking AUD-equivalent partnerships in Australia via shared integrity tech. In Europe, where the UK Gambling Commission mandates similar disclosures, Brazilian firms could export compliant models, enhancing global liquidity. Publishers stand to gain from official data mandates, ensuring fair odds on CBLOL leagues, which saw a 15% increase in betting volume in 2025.

Challenges remain, including enforcement in underserved regions and educating a youth-heavy demographic—65% of bettors under 30—on responsible wagering. Yet, with Brazil's 640 million global esports audience share, this framework could inspire India's nascent regulations or Indonesia's pilot programs. By prioritizing transparency, the consultation not only secures Brazil's market but also enhances the credibility of esports betting worldwide, driving sustainable growth amid projections of €2 billion in non-US revenues by 2027.

Sources: Yogonet International, iGaming Business