
Early Brazil Licensees Reveal First-Mover Benefits
KTO and Stake, among the first licensees in Brazil’s legal online betting market, shared insights with iGB about the licensing process and how their early entry strengthens their credibility with consumers.
Ahead of the market launch on Jan. 1, the Secretariat of Prizes and Bets (SPA) revealed KTO was one of just 14 companies to achieve full authorization to operate, while Stake was included on the list of 52 operators granted a provisional license, with certain certifications needing to be completed before it achieves complete authorization.
KTO founder and CEO Andreas Bardun told iGB the full license was a “mark of credibility” for the company’s operations, while Stake’s new Brazil country manager Thomas Carvalhaes spoke of a “major competitive advantage” at being one of the first to enter the market.
Bardun described the licensing process as “very stressful” and not “the most organized,” though both he and Carvalhaes had sympathy for the SPA, which worked over Christmas and New Year’s Eve to ensure the market was ready to launch.
Esportes da Sorte Allowed to Operate Across Brazil After Court Injunction
Esportes da Sorte has secured a Federal Court injunction allowing it to operate in Brazil’s licensed betting market.
The Federal Court’s ruling on Jan. 13 allows the Esportes da Sorte Group to launch its Esportes da Sorte and OnaBet brands nationwide in Brazil, despite not holding a federal or provisional license for the legal online betting market.
On Jan. 3, Federal Supreme Court Minister André Mendonça issued a preliminary ruling banning Rio de Janeiro State Lottery (Loterj) licensees, of which Esportes da Sorte is one, from offering gambling activities nationwide.
However, the new Federal Court ruling ensures that Esportes da Sorte will receive special authorization to operate nationally.
Aviatrix Launches in Peru as Part of Latin America Expansion
The crash game Aviatrix has launched in Peru as part of its expansion into regulated markets in Latin America.
Peru becomes Aviatrix’s first certified market in Latin America, with Brazil, Colombia, and others to follow soon.
Gabriela Novello, Aviatrix’s Director of Business Development, says the company is “really excited” about the expansion in the region.
“Peru is a really exciting opportunity for us, and we know Aviatrix is going to perform strongly for those looking to offer intuitive and engaging gameplay to their customers,” Novello explained.
ANJL Hits Out at Nubank for Displaying Anti-Gambling Message
The National Association of Games and Lotteries (ANJL) has criticized Nubank for issuing anti-gambling alerts to customers making transfers to gambling sites in Brazil.
The ANJL, joined by the International Gaming Association (AIGAMING) and the Brazilian Gaming Association (ABRAJOGOS), condemned Nubank’s actions in a press release Jan. 14, accusing the payments institution of overstepping its reach.
To players making a transaction related to gambling, Nubank displayed an on-screen message saying: “How about saving this money? Some of these games are legal in Brazil, but there are no guarantees of winning. By saving this money instead of betting, you can be sure that it will yield results without any worries.”
The ANJL claimed Nubank’s actions had violated the principle of economic freedom in Brazil, while it also criticized the bank for failing to display the message for other activities related to addiction, such as cigarettes and alcohol.
Brazil Betting Stakeholders Warn of 2025 Tax Challenges
Stakeholders in Brazil’s betting sector have warned of potential hefty tax requirements for the betting sector, including the possibility of players having to pay back-taxes for gray market betting.
There’s a 12 percent tax rate on gross gaming revenue (GGR) for operators in Brazil, while players face a 15 percent tax on winnings over BRL2,824 ($547.25).
Fixed-odds betting is also set to face a consumption tax from 2026, and on a Vixio webinar earlier this week, Rei do Pitaco’s Chief Legal Officer Rafael Marchetti Marcondes said: “When we talk about tax, it is always something that concerns the operators and everybody that does business in Brazil because we tend to have very high taxes and a prohibitive tax can be complicated to develop the business healthily locally.”
Additionally, players may face back-taxes for the gray market that existed between 2018 and 2023 with Luiz Felipe Maia, founding partner of the law firm Maia Yoshiyasu Advogados, warning the liability for that tax could be shifted to the operators, something he believes is unconstitutional.