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The legal online betting market in Brazil officially launched on January 1, marking a significant milestone after years of delays. With a population exceeding 200 million and a reputation as a sports-loving nation, Brazil is poised to become one of the top three gambling markets globally. Among the first to secure access to this lucrative market are operators KTO and Stake, both of whom are leveraging their early entry to build credibility and establish a competitive edge.
Brazil’s legal betting sector commenced with 14 companies receiving full licenses and 52 operators being granted provisional authorization. Provisional licenses were issued to companies encountering delays in their applications, particularly those related to certification. The extensive requirements and the high volume of applications submitted to the Secretariat of Prizes and Bets (SPA) have resulted in significant backlogs for certifying bodies. These provisional licenses allow operators to remain active for an initial 30 days, with the possibility of a 30-day extension if certifying entities confirm that more time is needed for full certification.
One such operator with provisional authorization is Stake, a predominantly cryptocurrency-focused company. Stake has identified regulated markets such as Brazil as the next step in its strategic expansion, having recently entered Colombia and Peru. The company appointed Thomas Carvalhaes as its Brazil country manager in November 2024 to lead its efforts in the newly regulated market. Carvalhaes is optimistic that Stake will soon receive its full license, stating, “In terms of the provisional licence, yes, we have a few documents on which we’re working, mainly around certifications. It’s literally a matter of time. I’m sure that in less than a month, if not before the end of this month, we should be able to get the confirmed final licence.”
The early launch of the legal market presents a crucial first-mover advantage for operators like Stake. Brazil’s legalization of online betting has drawn significant international interest, intensifying competition among operators. For Stake, being an early entrant is vital. “I think it’s truly important, because the market has shifted enormously,” Carvalhaes said. “We’re talking about a gigantic market. It is for a reason, of course, that all the major operators are here and pushing very strong. Being at the front when it comes to acquiring a licence and being granted the permission to continue operating here, I think it’s a major competitive advantage.”
Meanwhile, KTO was among the 14 companies to receive a full license on January 1, allowing it to go live alongside established brands like BetMGM and Rei do Pitaco. With ambitions to secure a 10% market share in Brazil, KTO’s full license approval is a testament to the company’s long-term commitment. Andreas Bardun, founder and CEO of KTO, emphasized the significance of this achievement, saying, “It’s like a stamp of approval on how disciplined we are as an organisation. I think it gives trust to the customer base as well, seeing that KTO is a very serious company that is in the forefront because internally we have this goal to be the leading brand in Brazil, meaning showing a better way of how to do things. And I think this really showed that.
“We always said when we entered Brazil, we were doing this for the long run. Everyone knows for sure that KTO is going to be here to stay and be very important for the Brazilian igaming market for the future.”
However, the road to legal gambling in Brazil has not been smooth. It took five years from the national congress approving online betting legislation in November 2018 to the chamber of deputies granting final approval for regulations in December 2023. The licensing process has also presented challenges for operators. Bardun described the application process as stressful, citing issues with communication from the SPA and the gambling application portal. “The regulator was also new in doing this, so they kind of moved the goalposts. Every time we thought we were ready and had done everything [required], they were asking for more documents or new requirements at the last minute that made us scramble,” Bardun explained.
Despite these challenges, Bardun expressed understanding for the regulator’s position. “It wasn’t the most organised licensing process. But I do have some understanding because this is something completely new for the Brazilian government. And to be fair to them, they were working all Christmas and New Year’s Eve to help all the operators.”
Carvalhaes echoed this sentiment, acknowledging that no licensing process is perfect from the outset. “Of course, no regulation and no licensing process has been developed perfectly from the top. There hasn’t been one single jurisdiction that has had the process [working seamlessly] and well put together from day zero,” he said. He praised the regulator for drawing inspiration from established markets like the UK to develop a fair and balanced framework. “I can say I believe Brazil has a very good, decent, fair and regulated market, both for the operators and for the customers as well,” he added.
With their licenses in place, both KTO and Stake are now focused on capturing significant market share. KTO aims to become a top-three operator in Brazil, with Bardun expressing confidence in the company’s trajectory. “I have always believed that KTO will be a major player in Brazil,” he declared. “I want KTO to be among the top three brands. That’s where we need to be.”
Similarly, Stake is targeting a prominent position in the market. Carvalhaes outlined the company’s goals, stating, “In terms of market share, this year we’re really pushing and we want to be positioned at least in the top 10. I think we have what it takes in terms of product, knowledge, people and background, to be in the top five.”
Looking ahead, Carvalhaes envisions Stake as a market leader within five years, provided the company continues to make strategic choices. “If we continue making the right choices when it comes to sponsorships and ambassadors and responsible gambling, and we continue being compliant to the regulator, I think we do have what it takes to be the top gambling and sports betting operator in Brazil. I feel very confident in saying this. Let’s be as ambitious as that,” he concluded.
Brazil’s legal online betting market has emerged as one of the most exciting stories in the gambling industry. For early licensees like Stake and KTO, the race is on to establish themselves as leaders in a sector that promises to be fiercely competitive and highly lucrative.
By fLEXI tEAM
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