After years of anticipation, gambling companies are now turning their focus to Brazil’s newly regulated market. As the largest market in Latin America, Brazil offers huge potential—but success won’t come easily. According to Steven Valentine, Chief Commercial Officer at Comtrade Gaming, businesses must be well-prepared to navigate several key challenges if they hope to fully capitalize on this long-awaited opportunity.
Brazil’s shift to a regulated gaming market has unlocked major opportunities for operators around the globe eager to tap into one of the industry's most promising new frontiers.
Even before the official launch of regulated online gambling on 1 January 2025, Brazil’s grey market was already valued at an estimated $3.4 billion (£2.6 billion/€3.0 billion).
By next year, the country is expected to host around 39 million active online betting and iGaming accounts, in a population of roughly 150 million adults. The market is also projected to reach $10 billion in gross gaming revenue by 2029.
It’s clear why Brazil’s gambling reforms have sparked such widespread enthusiasm and optimism.
However, both operators and suppliers recognize that with great opportunity comes significant challenge. The rapid growth and new regulatory landscape of Brazil’s market require careful navigation. Industry players are especially cautious, mindful of how some companies previously overspent while trying to establish themselves in the still-developing U.S. market. Learning from those missteps, many are now focused on sustainable growth and strategic execution in Brazil.
Securing a foothold
Comtrade Gaming, established nearly 25 years ago, is one of the industry players well-equipped to navigate the complexities of Latin America’s largest gaming market.
The Slovenia-based software provider—serving both online and land-based sectors—has been certified in Brazil since mid-January. In just the first half of 2025, the company has already made progress by securing two clients.
But this is only the beginning. After venturing into game development last year, Comtrade is now awaiting additional certification that will allow it to introduce its expanding portfolio of games to the Brazilian market.
“It’s a very exciting market, and quite different from the U.S., which sparked a lot of early enthusiasm but ended up being a disappointment for many,” said Steven Valentine, Comtrade’s chief commercial officer.
“In the U.S., heavy investment hasn’t always matched the return. But Brazil offers a different story—real potential and significant opportunity for providers like us.”
The five key hurdles in Brazil
1. Staffing
The first major hurdle highlighted by Steven Valentine for gambling companies aiming to tap into Brazil’s promising market is staffing.
With only about 5% of the population fluent in English, hiring Portuguese-speaking staff—preferably Brazilians—is crucial for success.
“We’ve already brought on several Brazilian team members based locally, including project and account managers,” Valentine said. “Expanding this team is a top priority. It’s essential to understand clients’ needs in their native language to build strong relationships and deliver effectively.”
2. Localisation
Valentine emphasized that offering products tailored to the Brazilian market is essential for any online gambling business aiming to succeed.
“It’s critical to simplify the process as much as possible for operators,” he explained.
“Brazil has a wide variety of payment methods and game providers, so it’s important to understand the local landscape—especially the Know Your Customer (KYC) requirements.”
3. Evangelisation and education
Valentine believes that part of the work in Brazil involves educating the market and sharing global insights to help clients explore new, more effective ways of operating.
“We’re not yet a familiar name in Brazil, so it’s important to be present on the ground and show people who we are and what sets us apart from companies that have been in the market longer,” he explained.
He noted that many Brazilian operators are accustomed to fast, low-cost solutions. “So, it’s about helping them understand that taking a bit more time for a proper migration—or investing slightly more upfront—can lead to significantly better service and long-term growth that far outweighs the initial costs.”
4. Regulation
Although Brazil’s online gambling market officially kicked off at the beginning of the year, experts view 2025 as a period of consolidation, where regulations and industry standards will be clarified and finalized.
Additionally, many companies in the sector continue to navigate the complex and often confusing regulatory frameworks that have been implemented.
5. Competition
Valentine highlights competition as the final major challenge, especially given the presence of established providers already operating in the Brazilian market.
When asked how providers can set themselves apart to attract Brazilian operators, Valentine reflects on the growing intensity of competition in the global gambling industry.
“A few years ago, I could probably count the major platform suppliers on one hand, but now I struggle to name half of them. It feels like 10 new ones launch almost every month,” he explains.
“This makes it difficult to stand out in a market where everyone seems to offer similar products, so operators need to understand why our company delivers dependable, high-quality service.”
“The biggest challenge for us—and the industry overall—is that the market has become more price-driven due to this competition, giving operators greater leverage to push vendors harder because they have so many options.”
The future
For companies like Comtrade—and others entering Brazil with realistic expectations rather than overconfidence—the gambling market presents significant growth potential if they can navigate its challenges.
However, Valentine offered a broader perspective, warning that rising competition will result in a “survival of the fittest” over the coming years. He noted, “There are no longer quick exits for start-up gaming businesses. Companies will either need to become profitable, which is difficult, or they may be forced to shut down.”
Optimistically, Valentine believes Brazil’s market will accommodate many different operators, unlike the U.S., where a few dominant players control the space.
“It’s very tough for newcomers to break into the U.S. market, but I expect Brazil to be very different,” he said.
Although sports betting has received much attention—reflecting Brazil’s passion for football and other sports—Valentine anticipates the market will broaden over time.
“As the market matures, I expect casino gaming to expand significantly,” he explained. He also emphasized that a more informed player base will enhance Brazil’s gaming sector.
“As players become more educated and the market adapts to their preferences, I see Brazil growing into the world’s largest single gaming market. I’m confident it will reach that status.”
