Brazil Betting Regulation: What the New Federal Licence Means for Operators

Brazil has moved from a grey market of offshore operators to a fully regulated federal regime for fixed-odds betting and online games. With a population of more than 200 million and a deep football culture, it is the most significant new regulated market of the decade. Here is what the licence involves.

The legal framework

Fixed-odds betting was legalised in 2018, but the operational framework only arrived with the 2023 law and the ordinances issued by the Ministry of Finance’s Secretariat of Prizes and Betting (SPA) in 2024. The regulated market opened at the start of 2025, and operators without federal authorisation were required to cease serving Brazilian customers.

Authorisation requirements

Authorisation is granted by the Ministry of Finance for a five-year term. Applicants must operate through a Brazilian company with at least one Brazilian shareholder holding a minimum 20% stake, with headquarters and administration in Brazil, and must demonstrate technical capacity, financial soundness and the integrity of owners and key persons. The authorisation fee is BRL 30 million, allowing up to three brands per licence. A financial reserve to guarantee player payouts is also required.

Technical and operational rules

Platforms must be certified by accredited laboratories against Brazilian technical standards, use the .bet.br domain, and route payments exclusively through Brazilian-licensed payment institutions using approved methods such as PIX and bank transfer. Credit cards and cryptocurrencies are not permitted for deposits. Player identification requires facial recognition and validation against government databases.

Taxation

Operators pay a 12% tax on GGR, alongside standard corporate taxes and social contributions, and players’ net winnings are subject to income tax. Contributions to sport, social security and public safety are embedded in the GGR levy. Modelling should also account for municipal service tax and the cost of the mandatory local structure.

Responsible gaming and advertising

Brazil requires deposit and time limits, self-exclusion, prohibition of bonuses for new customers and detailed advertising rules, including restrictions aimed at protecting minors and vulnerable people. Enforcement against unauthorised operators includes domain blocking and coordination with payment institutions.

Strategic considerations

The BRL 30 million fee and local substance requirements favour well-capitalised operators, and many international brands have entered through partnerships with Brazilian shareholders. Given the scale of the market, a Brazilian entry is a strategic project rather than a licence application.

Our corporate and structuring team can help design the Brazilian entity, shareholder arrangements and authorisation strategy.