Author: Levi Brooks

Brazil’s sports betting sector is growing more crowded. On Thursday, the Ministry of Finance confirmed its approval for LOTTUBET to officially operate online gaming and sports wagering across the country. This green light marks the third active licence under the Esportes Gaming Brasil group, which already runs Esportes da Sorte and Onabet.

The move, formalised by Ordinance No. 1,559, published by the Secretariat of Prizes and Betting (SPA), updates prior regulations and further opens up Brazil’s tightly controlled gambling space. It follows a legal process finalised under SEI No. 19995.000272/2025-49, signalling judicial support for this latest expansion.

A third name joins the fold

Three’s no longer a crowd — it’s a strategy. LOTTUBET, the newly authorised brand under the Esportes Gaming Brasil umbrella, now stands alongside Esportes da Sorte and Onabet. Each name is now cleared for action in Brazil’s regulated market, both online and in person.

LOTTUBET’s addition follows a quiet but meaningful court decision earlier this year. That ruling paved the way for Thursday’s SPA update and appears to have provided the final legal hurdle for Esportes Gaming Brasil’s newest launch.

The details of the legal ruling remain confidential. But its impact is now public.

What’s really changing?

Let’s not pretend this is just another logo on a screen. The arrival of LOTTUBET brings a few key shifts:

• Esportes Gaming Brasil now operates three independent betting brands, a move that could allow for better market segmentation.

• SPA’s decision suggests a more open stance toward expanding the operator base — a signal to other contenders waiting on approval.

• Consumers may see greater variety in offerings, bonuses, odds, and branding across platforms.

This development also reinforces the importance of judicial process in gaming approvals. Without the court nod earlier this year, LOTTUBET might still be on the sidelines.

Bigger picture: Brazil’s expanding gaming playbook

Brazil’s gaming market isn’t just warming up — it’s boiling over with new activity.

Since the passage of Ordinance No. 136 back in January 2025, the Ministry of Finance has moved quickly to shape a framework that’s strict but functional. And within that, SPA has emerged as the key driver behind approvals and oversight.

Here’s a quick timeline showing the group’s regulatory progress:

That SPA is granting third-brand rights to a single operator suggests a bit of confidence — not just in Esportes Gaming Brasil, but in the structure SPA has built around licensing.

Competitive edge or market overload?

Not everyone’s clapping. There’s a growing question inside Brazil’s betting sector about whether the market is becoming too dense too quickly. Some analysts warn that multiple brands under a single corporate group may lead to dilution, not competition.

Yet others argue it’s smart business. Having three distinct faces — with their own marketing, platforms, and target audiences — gives Esportes Gaming Brasil more flexibility in a market still taking shape.

“This is about audience segmentation,” one gaming consultant in São Paulo said Friday. “They’re not flooding the market, they’re covering it.”

Still, there’s work to be done. LOTTUBET hasn’t launched publicly yet. The branding’s not fully rolled out. Its marketing approach, pricing, and platform features are all under wraps — for now.

Legal clearance: the quiet key to growth

Though the SPA’s ordinance makes the headline, it’s the SEI process that unlocked the gate.

SEI No. 19995.000272/2025-49 — a process number buried in the official announcement — traces back to a judicial decision that made LOTTUBET’s approval possible. That case, while sealed from public view, likely dealt with regulatory interpretations tied to brand differentiation or ownership structure.

One sentence in the ordinance confirms it: this expansion is the direct result of that legal proceeding.

In short, the law got them there — not just luck or lobbying.

What’s next for Esportes Gaming Brasil?

No one inside Esportes Gaming Brasil has commented publicly on the news yet. But the addition of LOTTUBET points to a broader strategy.

The group may be preparing to align each brand with different segments: one targeting high rollers, one casual users, and one niche markets like esports or regional bettors. That model has worked elsewhere, particularly in European markets.

If that’s the play, Brazil could soon see more tailored promotions, more targeted bonuses, and perhaps even region-specific campaigns.

At minimum, it’s a sign the group is playing a long game. With three licences in hand and a compliant track record so far, Esportes Gaming Brasil just put itself ahead of the pack — at least for now.

In a market where many feared to tread or exited quietly, MelBet Partners & Affiliates stayed the course. Now, as the Kenyan iGaming industry heats up, their early bet on East Africa’s digital gaming economy is starting to look like a masterstroke.

What once seemed like a gamble in a fragmented continent is rapidly turning into one of the boldest plays in the online betting world. And Kenya? It’s right at the centre of the board.

Betting on the right horse: Why Kenya?

For years, the African iGaming market was overlooked—either underestimated or misunderstood. But in 2024, a noticeable shift began. And by mid-2025, Africa wasn’t just on the radar; it was front and centre for big brands with patience and a plan.

MelBet’s affiliate wing stood firm while others folded.

“We had a strategy. We understood Kenya’s framework better than most. That made all the difference,” said a MelBet spokesperson.

Many global betting brands underestimated the legal red tape and cultural nuances. MelBet didn’t. They studied local betting patterns, paid attention to regional advertising restrictions, and hired locally to build trust.

And let’s not ignore the big one—Kenya’s government has regulated betting for decades, making it one of the few African countries with structured gambling laws. A massive advantage.

What sets Kenya apart in the continent’s gaming scene

There’s no denying that Kenya has climbed to the top tier of Africa’s gaming scene. It’s not just about the numbers—it’s about stability, habit, and access.

One thing’s clear: Kenya isn’t a copy-paste market.

• Betting is ingrained in daily culture, especially among youth
• Mobile money services like M-PESA make deposits and withdrawals easy
• Urban internet penetration is among the best in East Africa
• English is widely spoken, simplifying marketing for international brands

Despite this, MelBet’s team insists that patience and cultural understanding have been key. “Kenyan users are smart. They want offers that make sense, platforms that are reliable, and brands that show up consistently—not just during football season,” said one affiliate manager based in Nairobi.

A closer look at Kenya’s legal and economic advantage

There’s something comforting about structure in an otherwise unpredictable region. Kenya offers that.

The Betting, Lotteries and Gaming Act (BLGA) of 1966 laid the groundwork. It’s been updated several times since, but the foundation remains solid. Licensing is clear. Advertising rules are strict but navigable. And unlike some neighbouring countries, Kenya doesn’t leave operators in legal limbo.

Here’s a quick side-by-side comparison to paint the picture:

That kind of regulatory transparency is rare in African markets. It’s no surprise, then, that affiliate partners feel safer launching campaigns in Kenya than anywhere else on the continent.

Affiliates are learning from MelBet’s slow-and-steady model

Kenya is fast becoming the blueprint for African affiliate marketing. But the playbook isn’t filled with flashy tricks—it’s built on consistency.

One affiliate partner said they’d rather earn slow, predictable revenue than chase unsustainable highs in markets with looser laws. MelBet’s programme appeals to this mindset.

They focus on real engagement, not short-term clicks. Payouts are reliable. And affiliates are encouraged to learn the nuances of each Kenyan region, not just blast generic ads.

“Affiliates who fail in Kenya usually try to treat it like Europe,” one insider remarked bluntly.

A growing youth population, a mobile-first economy—and no sign of slowing

Here’s where things get even more interesting. Kenya’s population is young. Really young. Over 75% of its people are under 35. That means the iGaming industry isn’t peaking—it’s just warming up.

And with most internet usage coming from mobile phones, platforms that are mobile-first (like MelBet) have an edge.

This creates a unique scenario:

1. Young users are digitally native

2. They’re used to mobile money for everything from shopping to paying bills

3. Live sports betting aligns with their real-time lifestyles

Basically, if you’re not optimising for mobile in Kenya, you’re already behind. MelBet didn’t just optimise—they designed with mobile at the core.

What’s next? Kenya as the launchpad, not the destination

MelBet might be focusing on Kenya now, but there’s a bigger game afoot.

Success in Kenya acts as a proof-of-concept. Investors, regulators, and partners are watching. If a brand can succeed in this regulated market with high user expectations, it proves scalability.

There’s already chatter about expansion into Tanzania and Rwanda, where digital infrastructure is improving and betting interest is on the rise.

Still, MelBet says Kenya will remain a key market. “We didn’t just build an audience. We built trust,” said a regional manager.

And in Africa’s often volatile iGaming scene, trust isn’t just currency—it’s the whole bank.

FanDuel, one of the biggest names in U.S. sports betting, is sounding the alarm. They’re urging lawmakers across multiple states to pump the brakes on tax hikes before the industry buckles under the strain.

The company’s message? If this keeps up, the regulated betting scene might not be around long enough to deliver the tax windfalls states are banking on.

Taxing Trouble: Industry Cries Foul as Margins Collapse

Cesar Fernandez, a top government affairs executive at FanDuel, made his case loud and clear this week at the National Council of Legislators from Gaming States (NCLGS) conference. He didn’t sugarcoat it.

He warned that between the marketing budgets, tech costs, staffing, bonuses, and sky-high state taxes, sportsbooks are barely scraping by. Despite a 10% national hold rate — the slice of the betting pie operators actually keep — profits are thin. Painfully thin.

According to FanDuel, sportsbooks only net $1.55 for every $100 wagered. That’s a 1.5% margin.

For comparison, supermarket chains like Kroger or Tesco operate at around 2.5–3% margins — and they’re considered razor-thin too.

“We’ve gone from being viewed as contributors to being seen as cash cows,” Fernandez said. “There’s this belief that gambling companies are swimming in profits — but the math just doesn’t hold up.”

New York’s 51% Tax: “Brutal” and Bad for Business

It’s not just FanDuel complaining. Across the industry, eyebrows are rising over New York’s towering 51% tax on gross gaming revenue. Operators call it unsustainable.

Illinois isn’t far behind. The state recently slapped a $0.50 fee on every single bet — not on profits, but on the act of betting itself. That’s triggered a domino effect. Big players like DraftKings, FanDuel, and Fanatics Sportsbook are now passing that cost straight to users.

One-sentence pause: It’s not just bad for business — it’s potentially pushing customers away.

You can already see the cracks. Users grumble on Reddit and X (formerly Twitter) about worse odds, higher fees, and fewer bonuses. Operators are trimming promotions to stay afloat.

What FanDuel Wants: Less Tax, More Casino

FanDuel isn’t just shouting into the void — they’ve got a plan. Well, two, actually.

First, they want state governments to reconsider these eye-watering tax rates. Second, they’re pushing for online casinos to be legalised in more states.

Why? Because online casinos, unlike sports betting, don’t depend on unpredictable events like underdog wins or referee calls. The margins are healthier. The revenue is steadier. And the promotional costs are lower.

Right now, only seven states have legalised online casino gambling. FanDuel and friends are lobbying hard to bring that number up.

Here’s a snapshot of where online casinos stand today:

Fernandez points to these examples as proof that there’s room for healthy expansion — if lawmakers are willing to listen.

The Real Risk: Users Fleeing to Illegal Operators

In another panel, FanDuel’s attorney Brad Fischer issued a stark warning. He said the tax pressure isn’t just squeezing profits — it’s pushing people into the arms of unregulated operators.

And this time, the threat isn’t theoretical.

“It’s happening right now,” Fischer said. “And it’s only going to get worse.”

The concern? Sweepstakes casinos and offshore betting sites — neither of which pay U.S. taxes or follow state rules — are thriving. Why? Because they offer better odds, more aggressive bonuses, and zero state surcharges.

And while lawmakers may hope tax hikes will boost public coffers, the opposite could be happening.

One sentence, just to let that sink in.

Players drift away from regulated sportsbooks, and states lose both tax revenue and consumer protection oversight. It’s a lose-lose.

Operators Say They’re Not Anti-Tax, Just Anti-Overkill

Let’s be clear: FanDuel isn’t asking for a free ride. Industry insiders openly acknowledge they should contribute to state budgets — especially considering how fast the sector’s grown since 2018.

But they argue there’s a tipping point. Go too far, and legal operators can’t compete.

One executive summed it up privately like this:

• “We’re not asking for sympathy — just sanity. You can’t tax something into extinction and expect it to keep paying you.”

The math supports the mood. In New York, some analysts say the market has plateaued, and promotional spending has fallen off a cliff. Operators simply can’t afford to compete with aggressive bonuses anymore.

And once the fun disappears for users, so do the dollars.

Political Tensions Simmer Behind the Scenes

States see gambling as a golden goose. But they’re starting to choke the bird.

Lawmakers under budget pressure are leaning heavily on gambling revenue to patch holes in education, infrastructure, and healthcare funding. In election years, that pressure only intensifies.

Behind the scenes, lobbying is in full swing. Trade groups are gearing up for fights in legislatures from Ohio to Maryland. FanDuel, DraftKings, and others are throwing money at the problem — but also facing growing scrutiny.

Meanwhile, consumer advocates argue that if sportsbooks can’t survive without gouging users, maybe the model itself is broken.

That kind of criticism hits a nerve.

But one thing is certain: The future of legal sports betting in the U.S. is no longer a guaranteed win.