Brazil's ban on online betting and casino shakes the industry

Once considered one of the world's most promising regulated iGaming markets, Brazil now faces a severe crisis following the ban on online sports betting and casino games. Licensed operators have been forced to suspend their activities.

William Bonalume, who has more than 15 years of experience in fintech and iGaming across operations, risk management and compliance, argues that the decision was strongly influenced by the election climate. According to him, the rise in household debt was linked to the betting industry, and this narrative received wide coverage in the media. Although the decision found support among part of the public, it drew serious backlash from workers whose livelihoods depend on the sector.

Bonalume says the decision has damaged investor confidence. He notes that large operators backed by international capital may reassess their stake in Brazil, while small and medium-sized companies may lack the financial strength to withstand prolonged uncertainty. Technology providers, KYC services, cloud infrastructure and payment institutions are also among the affected areas.

Bonalume believes the ban will be temporary. However, he estimates that on its return the market may initially reach only about 60 percent of its previous size. He says rebuilding trust will take time and that the effects of the instability could be felt for years.