Crypto gambling in Brazil: How the industry is changing
Summary
Brazil’s formal online betting market, launched 1 January 2025, explicitly bans the use of cryptocurrency for gambling payments under Normative Ordinance No 615. The move is intended to tighten financial controls, improve transparency and curb the black market. While crypto was a visible feature of the pre‑regulation grey market, industry analysts say it accounted for only a tiny share of transactions in Brazil. Regulators and licensed operators are now focusing on stronger KYC, localisation and monitoring of exchanges to channel players into the regulated ecosystem.
Key Points
- Normative Ordinance No 615 forbids operators from accepting cryptocurrency for betting; only electronic transfers are permitted.
- The ban took effect with the opening of Brazil’s regulated iGaming market on 1 January 2025.
- Experts estimate crypto accounted for a very small proportion of Brazilian gambling transactions (Ed Birkin cited about 0.7%).
- Regulators, including the Central Bank, now monitor exchanges for suspicious payments tied to unlicensed platforms.
- Licensed operators are emphasising localisation and strict KYC to build trust and prevent players migrating to offshore crypto sites.
- There is a tension: banning crypto can reduce hidden flows but may also push some players back to offshore, unregulated sites.
Context and relevance
The prohibition is part of a broader regulatory push to create a transparent, licenced gambling market in Brazil and to clamp down on illegal operators. High digital penetration and the previous lack of a full regulatory framework had made crypto attractive for offshore play. With the new regime, authorities aim to control financial flows and reduce money‑laundering risks while steering customers to licenced operators.
Why should I read this?
Quick take: if you work with payments, compliance, or iGaming in Brazil (or plan to enter the market), this is worth a skim. The rules change who you can accept money from and how you monitor it — and that affects product, payments strategy and customer onboarding. If you’re just curious about crypto hype, this shows it was never as big in Brazil’s gambling market as you might have heard.
Author’s take
Punchy summary: this isn’t a global watershed but it matters locally. Regulators have chosen enforceability and traceability over innovation in payments. For operators, compliance and player protection now beat novelty — so adapt payments and KYC, or risk losing market access.
Source
Source: https://igamingbusiness.com/the-rulebook/brazil/crypto-gambling-industry-brazil/
