After Brazil passed legislation to allow betting in December, esports will soon be regulated in the country. When the day of legalisation will be remains unclear, however, so let's take a look at what the situation is currently. Alongside being a country fanatical over physical sports, Brazil is also a strong market for the online version too, with a large and growing esports industry. A recent survey from IT services company Loadout found 38% of Brazilian aged between 16 and 64 watch esports at least once a week. This is the highest percentage across the Americas. photo credit: loadout 39% of weekly esports watchers “regularly bet” on it, 6% higher than second-placed Mexico in LatAm. There are 19.8 million regular esports bettors in Brazil. Sports betting is also expected to be legalised soon, and the crossover between esports watchers could prove hugely beneficial for operators, with 95% of LatAm weekly esports watchers also watching football. photo credit: loadout The rise of esports in Brazil has also been helped by the rise of teams originating from the country, such as Furia. Loadout’s survey found that 12% of LatAm fans support the Brazilian esports organisation. Will there be Brazilian esports betting regulation in 2024? On 21 December, Brazil’s chamber of deputies voted to approve Bill 3,626/2023, which will regulate sports betting and esports. Igaming was also included in the bill having previously been removed by the senate. Brazil’s president, Luiz Inacio Lula da Silva, signed the bill into law on 30 December. The head of state then made regulation official, ratifying a new regulatory framework for sports betting and igaming. There is still work to be done, however, with a general expectation that full legalisation will not be in place until the latter stages of 2024. The next steps will be for the Ministry of Finance to publish regulatory guidelines for operators. The same will also be put out to public consultation before becoming effective, likely in late 2024. The time before legalisation will give esports betting operators the opportunity to prepare to launch when allowed to. To qualify for a licence, operators must have a Brazilian partner that holds a minimum of 20% of the company’s capital in the country. They also must have the appropriate cybersecurity systems in place. It is set to be a hugely competitive market, with approximately 150 legal operators reportedly interested in getting licenced. Advertising proving contentious There are also some issues still to be ironed out prior to full esports betting legalisation. For instance, a potential ban on celebrities being used in betting advertising is ready to be included on the senate’s agenda in 2024. Bill 3,405/2023 seeks to prohibit the use of celebrities in sports betting advertising, with Senator Eduardo Girao, who has long been against gambling in Brazil, presenting amendments that would ban anyone considered to have influence being involved in marketing of gambling. In Girao’s view, Bill 3,405/2023 would protect Brazilian citizens from the risks of gambling harms, both emotional and financial. Esports’ LatAm opportunity LatAm has shown positive esports growth of late. Brazil leads potential forecasts for the market, with Mexico in second also expected to make a large revenue contribution. By 2027, esports revenues across the continent are projected to reach $300m (£234.9m/€274.9m). Esports giants such as Unikrn, Stake and Rivalry are all making moves in the region. After being acquired by Entain in October 2021, Unikrn went live in Brazil in late 2022. In February 2023, Unikrn announced a new partnership with esports organisation Team Liquid in Brazil. The move allowed both Unikrn and Team Liquid to increase their presence in Brazil. Rivalry also took action in the Brazilian market in 2023, with an October marketing campaign featuring esports influencer Gustavo “Baiano” Gomes. Rivalry planned to grow its level of engagement with esports fans in Brazil with the advertisement.

After Brazil passed legislation to allow betting in December, esports will soon be regulated in the country. When the day of legalisation will be remains unclear, however, so let’s take a look at what the situation is currently. Alongside being a country fanatical over physical sports, Brazil is also a strong market for the online […]

After Brazil passed legislation to allow betting in December, esports will soon be regulated in the country. When the day of legalisation will be remains unclear, however, so let’s take a look at what the situation is currently.

Alongside being a country fanatical over physical sports, Brazil is also a strong market for the online version too, with a large and growing esports industry.

A recent survey from IT services company Loadout found 38% of Brazilian aged between 16 and 64 watch esports at least once a week. This is the highest percentage across the Americas.

39% of weekly esports watchers “regularly bet” on it, 6% higher than second-placed Mexico in LatAm. There are 19.8 million regular esports bettors in Brazil.

Sports betting is also expected to be legalised soon, and the crossover between esports watchers could prove hugely beneficial for operators, with 95% of LatAm weekly esports watchers also watching football.

The rise of esports in Brazil has also been helped by the rise of teams originating from the country, such as Furia. Loadout’s survey found that 12% of LatAm fans support the Brazilian esports organisation.

Will there be Brazilian esports betting regulation in 2024?

On 21 December, Brazil’s chamber of deputies voted to approve Bill 3,626/2023, which will regulate sports betting and esports. Igaming was also included in the bill having previously been removed by the senate.

Brazil’s president, Luiz Inacio Lula da Silva, signed the bill into law on 30 December. The head of state then made regulation official, ratifying a new regulatory framework for sports betting and igaming.

There is still work to be done, however, with a general expectation that full legalisation will not be in place until the latter stages of 2024.

The next steps will be for the Ministry of Finance to publish regulatory guidelines for operators. The same will also be put out to public consultation before becoming effective, likely in late 2024.

The time before legalisation will give esports betting operators the opportunity to prepare to launch when allowed to. To qualify for a licence, operators must have a Brazilian partner that holds a minimum of 20% of the company’s capital in the country. They also must have the appropriate cybersecurity systems in place.

It is set to be a hugely competitive market, with approximately 150 legal operators reportedly interested in getting licenced.

Advertising proving contentious

There are also some issues still to be ironed out prior to full esports betting legalisation. For instance, a potential ban on celebrities being used in betting advertising is ready to be included on the senate’s agenda in 2024.

Bill 3,405/2023 seeks to prohibit the use of celebrities in sports betting advertising, with Senator Eduardo Girao, who has long been against gambling in Brazil, presenting amendments that would ban anyone considered to have influence being involved in marketing of gambling.

In Girao’s view, Bill 3,405/2023 would protect Brazilian citizens from the risks of gambling harms, both emotional and financial.

Esports’ LatAm opportunity

LatAm has shown positive esports growth of late. Brazil leads potential forecasts for the market, with Mexico in second also expected to make a large revenue contribution. By 2027, esports revenues across the continent are projected to reach $300m (£234.9m/€274.9m).

Esports giants such as Unikrn, Stake and Rivalry are all making moves in the region.

After being acquired by Entain in October 2021, Unikrn went live in Brazil in late 2022. In February 2023, Unikrn announced a new partnership with esports organisation Team Liquid in Brazil. The move allowed both Unikrn and Team Liquid to increase their presence in Brazil.

Rivalry also took action in the Brazilian market in 2023, with an October marketing campaign featuring esports influencer Gustavo “Baiano” Gomes. Rivalry planned to grow its level of engagement with esports fans in Brazil with the advertisement.