Crypto Casinos Still Thriving Despite Being Banned in Brazil

On January 1.2025, online gambling in Brazil took a swing for the legal. In the same breath of liberation, the Secretariat of Prizes and Betting (SPA) also banned the use of crypto in regulated casinos.

However, while the corresponding Ordinance reshaped the outlook of regulated online gambling in the largest LATAM country, it did little to offset crypto-minded players. According to the latest reports, they just drifted offshore.

Brazil’s Bold Regulatory Shift: The New Bill

The turn of the year marked a seismic shift in Brazil’s journey to become a legal gaming haven. That’s when Normative Ordinance No. 615/2024 came into full effect, regulating online gambling and banning the use of Bitcoin, Ethereum, and other digital assets.

Crucially, though, the bill does not outlaw cryptocurrency ownership or trading. It just bans it from existing on regulated platforms.

It did usher in a new era, though. Before the Betting Bill of Law, as the legislation is sometimes referred to, Brazil had been the world’s largest gray market for the better part of 80 years.

The reasoning behind the crypto gaming ban is that, despite their indisputably traceable nature, crypto payments allow less regulatory oversight because no banks are involved. The legislation bans not only crypto but also credit cards, cheques, and payment slips, and requires direct electronic transfers between players and operators.

Crypto Gambling in Brazil: Then and Now

Before the legalization, crypto casinos were quite popular among Brazilian bettors and players. Brazil’s banking system and financial regulations have traditionally posed hurdles for online gambling operators, often resulting in delays or restrictions in payment processing. Cryptocurrencies provided a workaround, enabling faster deposits and withdrawals with increased anonymity.

There is little information about just how much of the market was crypto-led. Ed Birkin from H2 Gambling Capital claims that crypto transactions accounted for only 0.7% pre-2025. Still, considering that crypto gaming is a niche activity and that, according to Poder Data, over one-third of Brazil’s 16+ population placed bets in September 2025, that’s more than just a book-balancing sum.

It’s likely to be even more, though. André Gelfi, cofounder and CEO of the Brazilian Institute of Responsible Gaming (IBJR), said in April that 60% of Brazil’s monthly gross gaming revenue came from outside its borders. That’s with high levels of crypto literacy in Brazil.

Business as Usual for Crypto Casinos

The use of cryptocurrencies for betting is now prohibited within Brazil’s regulated market, but international crypto casinos haven’t vanished. Far from it.

Many of these operators take the social media route to market their privacy, no limits on deposits or withdrawals, and access to a broad range of cryptocurrencies. Players who value anonymity and the potential benefits of blockchain technology often choose these platforms despite the potential risks of operating outside Brazil’s legal framework.

The environment is less liberating for them than it used to be, but the strict KYC measures, crypto literacy, and enforcement limitations in Brazil still leave enough space for offshore operators to thrive.

Looking Ahead

The pro-ban commentators often cite Brazil’s dodgy history of financial crime, claiming that crypto is where the bad actors hang their hats. However, in an attempt to curb financial crime and mitigate the risk of money laundering, the ban only pushed crypto players offshore.

Granted, the number of crypto players is nowhere near that of fiat players, but with increasingly better welcome bonuses, more games to enjoy, and provably fair gaming, their numbers are growing.

Either way, the future of crypto gambling in Brazil is uncertain. Brazilian authorities continue to monitor global trends in cryptocurrency regulation, while players weigh pros and cons and decide for themselves.