What questions must Brazil answer to win back investors?

Alex W Pariente argues that stability in regulation is essential for Brazil to regain investor confidence in its iGaming sector. Since October 25, there has been no authorized betting market in the country. The 85 licenses issued under Law 14,790 were acquired with payments totaling 2.55 billion reais (476.2 million dollars). These licenses expired without any refund being made.

Provisional Measure 1,394 remains in force. Congress has not yet set up the joint committee that will review this measure. Luiz Fux, Minister of the Federal Supreme Court, will hear the government, associations and clubs at a hearing on November 3.

According to Pariente, investment committees usually assess the market through seven questions. The first question concerns licenses. A major operator will not enter a market where the 2.55 billion reais paid by earlier investors are still being disputed in court. The new model should begin with resolving the 19 existing lawsuits.

In Spain, the Supreme Court annulled advertising restrictions introduced by decree in 2024 and ruled that such restrictions must be imposed by law. The United Arab Emirates set up a federal regulator in 2023 and issued its first license in 2024. Brazil's Secretariat of Prizes and Betting has already built data and payment monitoring systems. Pariente says the real challenge is giving this institution technical authority and stability.

Without advocating a more open or a more restrictive model, Pariente states that Brazil already has the legal and professional infrastructure needed to rebuild the sector. In his view, protecting the existing structures could turn the crisis into a new investment opportunity.