Brazil iGaming demand falls 20pct after betting ban: Blask analysis

Demand for online gaming in Brazil fell by 20.1 percent week-on-week following the government’s decision to prohibit fixed-odds sports betting and online games nationwide, according to data from artificial intelligence (AI)-driven market analytics platform Blask. The decline in the firm’s Blask Index followed a sharp, short-lived increase in online gaming demand immediately after Brazil’s leader, President Luiz Inácio Lula da Silva, signed a provisional measure on Friday introducing the ban. Multiple news outlets have suggested a link between the timing of the ban, and a presidential election due in Brazil next month. Blask said its index had initially surged by 41.45 percent day-on-day on Saturday, when news of the prohibition attracted widespread attention. The subsequent “weekly decline reflects what happened next, as the market began pricing in an actual shutdown rather than just the news of one,” said the analytics firm in a briefing on its research shared with GGRAsia. The Blask Index measures demand for iGaming brands in individual markets using normalised online search data. It is an indicator of consumer interest rather than a direct measurement of betting activity or gross gaming revenue (GGR). The latest findings come amid uncertainty over the future of Brazil’s regulated online betting industry, with industry associations challenging the president’s provisional order via the country’s Supreme Federal Court. As it stands, the measure prohibits the operation, offering, intermediation and advertising of fixed-odds sports betting and online games across physical and digital channels. The restrictions also apply to offshore platforms targeting Brazilian consumers, although other lottery products authorised under Brazilian law are exempt. Under the measure, operators were required to stop accepting new deposits following its publication. Customers have until October 5 to withdraw funds from their accounts, while betting websites and applications must cease operations from October 6. The provisional measure took effect immediately but requires approval from Brazil’s Congress within 120 days to remain in force. On Monday, associations representing the country’s gaming industry filed proceedings with the Supreme Federal Court, seeking to suspend the government’s order. They argue that the abrupt prohibition threatens existing investments, creates legal uncertainty and could encourage gambling through unregulated platforms. “Brazil regulated fixed-odds betting only two years ago; a full-scale prohibition attempt this soon, contested in court within days, is a marked reversal for one of Latin America’s largest regulated markets,” Blask noted. International operators have already warned of the financial implications. Flutter Entertainment Plc has estimated that the ban could reduce its 2026 revenue by approximately US$70 million and adjusted earnings by US$20 million, should the restrictions remain in place through the end of the year, according to Reuters news agency Philippines-listed online gaming operator DigiPlus Interactive Corp, which relaunched its BingoPlus platform in Brazil in July this year, said on Monday that it was taking steps to comply with the Brazilian government’s directive, including processing customer withdrawals within the prescribed period. The company said the regulatory developments were not expected to have a material impact on its overall financial or operating position. DigiPlus added that it was monitoring the ongoing legislative and legal processes, noting that the situation “remained fluid”.