Guide to Start Online Casino in Brazil

iGaming in Brazil is one of the hottest discussions in the iGaming town right now! What has changed in Brazil’s betting dynamics? How are new entrants moving in smoothly? Let’s find out.

Table of Contents

Brazil witnessed a major turning point in its sports betting landscape in the year 2023. It came after President Lula Da Silva approved a law to offer betting licenses to both land-based and online casinos in Brazil. The law came into enforcement after its first foundation set in 2018, which legalized sports betting under Law No. 13756.

On December 30, 2023, the President signed Bill 3.626/23 to officially enforce the legality of sports betting and iGaming industries in the region with Law No. 14790. This date has become a milestone in the history of Brazil’s iGaming industry.

President Lula’s move will lead to major strategic advancements in the future. With these implementations coming into the picture, Brazil’s gambling sector is all set for a comprehensive evolution.

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Gambling Legal Situation in Brazil Over the Years

Over the years, Brazil has been sailing on a turbulent boat when it comes to betting. In 1946, the country laid a ban on all types of betting and wagering activities. This ban further continued till the years of 1970s. Later state-owned lotteries were permitted and bans were lifted to some extent.

Many years later, in 2010 and 2013, the Brazilian government again tried to prohibit online casinos in Brazil, but their attempts were unsuccessful. It was evident that the locals’ love for sports and wagering was unwavering. However, international operators were still allowed to operate in the Brazilian region.

Meanwhile, many industry experts observed a positive shift in the government’s attitude towards betting. This could have been possible because of the industry’s contribution to the country’s economy. As iGaming/wagering brought many job opportunities and investments for the locals.

Considering the high inflation and slow economic growth in the region, speculations are rife that the Brazilian government will soon permit the iGaming industry to fully set in. It is estimated that local casino players are anyways spending a whopping $200 million annually on international iGaming websites.

Changing Legalities- New Opportunities Unlocking for Online Casino in Brazil

Brazil’s lower Parliament House has already passed the new gambling bills in an attempt to legalize offline wagering and iGaming in the country.

Some of the key requirements for new online casino in Brazil will be:

International operators must establish themselves as a local entity in order to gain a license.
For a single app or website, the estimated license fee will be €5.69 million and is valid for 3 years.
The government will charge an 18% tax on the Gross Gaming Revenue.
There will be a ban on bonus bets and operators are not allowed to include them in promotions.

Well, now that legalities have fully set in and the Brazilian government is lifting bans, let’s understand the changing market dynamics in Brazil over the Years.

Brazil’s iGaming Industry Overview

Brazil’s Demographics(By 2024)

Population: 214.3 million

Internet Penetration: 77.87%

Mobile Device Penetration: 55%

Locals’ love for sports betting is creating a bigger and better opportunity for international operators in the arena.

Brazil’s market has just opened and is expected to expand rapidly. Confirming these foreseen trends, Statista’s reports suggest that the iGaming market in Brazil will grow at a CAGR of 18.82%. It is expected to reach EUR 3 billion by 2027.

iGaming operators believe it to be an easy and solid market evolving. Simply because of Brazilians’ love for football, horse racing, lotteries, bingo, and other wagering activities, their competitive nature, and their desire to engage in fun activities.

Sports betting is currently the most popular form of gambling in the region. 60% of bettors look at it as a way of recreation. It is also viewed as a means of socializing for some, while others consider it as a direct source of income, putting them at risk.

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How to Set up an Online Casino in Brazil in a Jiffy: Spilling a Secret Sauce

Setting up an online casino in Brazil is a bit more complicated than in any other jurisdiction. Operators need to meet several criteria such as flexible administration, security, and payments, and avoid overuse of bonuses upfront.

Food For Thought 💡

With 55% mobile device penetration, having a robust online casino app for mobile devices will give you a competitive edge and early adoption.

International operators need to understand that scalability will become a crucial factor when moving to the Braizilan iGaming market. Remember when we talked about sports betting being a favorite amongst the locals? It can act as a great opportunity for you to integrate a sportsbook with your online casino platform and cross-sell between the two.

While figuring out answers to how to create an online casino, it is crucial to foresee the future. The online casino software solution created by PieGaming is designed to help you have a swift entry.

Our virtual casino platform features a multilingual interface, a robust back office, security, and even cryptocurrency support to help operators easily expand their horizons. You can get a fully packaged sportsbook, online casino, PAM, and multiple robust security features packed as one with PieGaming to create exceptional iGaming software to capture the market fully.

PieGaming’s online casino solution offers over 200 games, 30+ Third-party integrations, a robust Player Account Management (PAM) system, and a secure interface to keep your software safe.

The turnkey and white label iGaming solutions are the most compatible options for operators keen to enter the Brazilian market.

Games that Work the Best in the Brazilian Wagering World

Set up Your Online Casino Legally

Brazilians love to explore and try their luck in all sorts of casino games. Sports betting, bingo, lottery, and roulette are some of the most popular casino games in the region and are equally loved in online casinos in Brazil. There are reports from Statista that confirm Roulette tops the list of games and Brazilians enjoy it in all versions. Their love for placing the bets and watching the wheel spin is unmatchable.

Another popular game amongst locals is BlackJack. Table games stand third in the line of love for Brazilians. They enjoy these games as they offer them a great mix of luck and strategy. It lets players challenge and compete with other players, generally boosting the adrenaline rush.

Slot Games, just like any other country in the world, Brazil loves it too. Whether it is a three-reel fruit slot or any other modern video slot with many pay lines, Brazilians love to spin the reel to enjoy a winning combination.

Poker ranks fifth in line for the region’s wagering activities. Majorly because it owes a part of its popularity to mismanaged regulations on skill-based games.

Finally, live dealer casino games have gained popularity amongst locals lately. As we have already talked about internet penetration and Brazilian awareness, live dealer casino games over the internet have taken the market by storm in the last few years, even if that meant for the players to wager on international websites.

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Who will be Your Target Audience in Brazil?

Who are you thinking of as your target audience for your online casino in Brazil?

Men? Aged 30-45?

It is exactly here that you’re mistaken!

To your surprise, Brazil has more women wagerers than men. Interesting, isn’t it?

Brazil has over 63% of women playing casinos between the age of 25 to 40. It is the highest for any country to ever have. There is a little backstory to mindset that operators need to give attention to. Women in the region play casino games to try their luck, win a fortune, and become rich. Most of the people in the country earn little income, and this is not just recreation but a game of chance too for them.

This is also the reason why the Brazilian Government has put restrictions on advertising and promoting bonuses upfront.

Therefore, next time you go ahead to promote your virtual casino and think of setting up your target audience, make sure to include women in the fair game of casino. Their interest and curiosity will keep the business alive while giving them a fair chance to try their luck.

Payment Gateways: An Integral Part in Setting up Casino Online in Brazil

Currently, there are more than 300 online wagering websites active in the region to serve locals. A lot of them are said to be belonging to international operators. Out of these around 186 are functioning as full-fledged casinos.

In Brazil, many international operators are serving locals and accepting payments in the local fiat currency ‘Real’. Additionally, since Bitcoin has exploded, players are hovering over to place bets in cryptocurrencies as well.

Cryptocurrency has been on a constant rise in the country, making it a safer option for payments. In 2022 alone, around 7.8% of Brazilians owned cryptocurrency, trading $11.4 Billion in stablecoins.

Fun Fact 💸

Brazilians prefer to use their credit and debit cards for payments in fiat currency, contributing to over 70% of all processed online payments.

Promotions and Marketing: How it Works for Online Casino in Brazil

Since iGaming was a grey zone in Brazil for the longest time, upfront marketing and promotions were out of sight. However, with the amendments made in the bills and the legalization of iGaming, the landscape has started to shift. Now, licensed operators can promote their online casinos in the area, following strict guidelines. It includes encouraging safe betting, warning of the risks, and avoiding false claims.

Despite the restrictions, one can always find ways to be creative in the new avenue to attract more players and maximize potential.

Building an affiliate network, advertising online, and using paid ads are good ideas to start with.

Wrapping up,

Brazil is truly an untapped market for betting that holds a lot of potential. The recent changes by the Brazilian Government will boost iGaming. It will create a win-win by stimulating the flow of money.

For long the entire iGaming community was waiting for laws to change in Brazil. Now with this legalization, the dynamics are surely to transform. And if you’re an operator keen on expanding, this is your time to step that foot in and create a thriving venture with online casino in Brazil.

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Nikita Ajmani

Nikitaa Ajmani is a passionate writer at PieGaming, specializing in exploring the dynamic world of iGaming. With a keen interest and 5+ years of experience in technology and gaming, Nikitaa offers insightful analysis and information about the industry. Dive into the world of iGaming with Nikitaa to uncover the latest trends and innovations in the industry of online gaming.