Online Casino & Sports Betting Regulations in Brazil

Brazil’s gambling scene has gone through a massive shake-up. In 2025, the newly regulated betting market brought in around $7 billion in revenue, with over 25 million Brazilians placing bets online.

Regulated sites received 26.4 billion visits, more than triple the traffic from the year before, and the government collected nearly $2.2 billion in taxes. Brazil’s betting market is now among the most significant regulated iGaming markets globally.

In this blog, we break down how Brazil went from a gray market free-for-all to a fully regulated industry, what the numbers really mean, and what comes next.

Regulatory Framework Governing iGaming in Brazil

Implementation of regulations on online betting is at the federal level and has been structured accordingly. Operating under the Ministry of Finance, the Secretariat of Prizes and Bets (SPA) is the sole authority that grants licenses and monitors fixed-odds sports betting and online casino-style platforms nationwide.

The SPA’s functions are not limited to the issuance of licenses only, however. It oversees operators as well through its SIGAP (Sistema de Gestão de Apostas or Betting Management System), a centralized system that funnels in transaction data and betting reports with real-time access, thus providing the requisite level of visibility for identifying issues early on, ensuring compliance, and enforcing the rules regarding financial and technical matters as well as problem gaming.

Despite the complexity of the framework, the core operating principle is straightforward: no operator can run a platform in Brazil without a federal license. The Brazilian state does not sign contracts with companies looking to offer bookmaking services, and these businesses cannot be formally registered in the country. This means any games of chance available to Brazilian users, whether the servers are based inside Brazil or somewhere else, are considered unauthorized if they do not have the proper legal approval to operate.

Not everything is neatly settled, though. Several states, most notably Rio de Janeiro, have tried to set up their own betting frameworks under state lottery laws. The intention is to allow localized operations under state control, but this has created a direct conflict with federal authorities.
Brazil’s Supreme Federal Court is currently reviewing the matter through ADPF 1212, which will decide whether states have the constitutional right to regulate betting independently beyond traditional lotteries. Until that ruling comes through, state-level licenses remain legally uncertain and do not grant operators the right to operate nationwide.

For now, federal licensing through the SPA is the only route that guarantees full legal standing across the country.

There is also a legislative development worth watching. Bill PL 2985/2023, currently under consideration, proposes tighter advertising rules for betting operators. If passed, it could restrict endorsements, media exposure, and promotional activity, adding another layer of compliance complexity for licensed operators.

Relevant Authorities and Legislation

Here is an overview of the key regulatory authorities and what they oversee.

Brazil’s regulatory setup is federally led, with the SPA firmly in control. State involvement exists but remains limited and legally unsettled until the courts provide a definitive answer.

Recent Regulatory Changes (2025–2026)

Brazil has significantly tightened control over its betting market, with multiple regulations already in force. Under Law 14,790/2023, the Secretariat of Prizes and Betting (SPA) has implemented stricter compliance, enforcement, and oversight measures across the sector.

Biometric Verification Mandates

Identity verification requirements have become more rigorous. Under Ordinance SPA/MF No. 722, operators must use facial recognition with liveness detection for KYC during registration and deposits. Static image submissions are no longer accepted.

Operators are also required to perform real-time CPF validation against Receita Federal databases to verify user identity, age, and status. This data must be reported daily through the SIGAP system. Non-compliance has already resulted in fines, with repeat violations risking license suspension or revocation.

Tax Hikes and Fiscal Adjustments

The tax burden on operators has increased. Complementary Law No. 224, approved in January 2026, raises the Gross Gaming Revenue (GGR) tax rate from 12% to 13% after a 90-day transition period.

The SPA is also reviewing operator authorization procedures and sanction frameworks throughout 2026, with potential new requirements around capitalization and reserve funds still under evaluation.

Enforcement and Anti-Illegal Measures

Following the end of the transition period in January 2026, the SPA has moved into full enforcement mode. SIGAP is actively used to issue fines for failures related to anti-money laundering (AML) and politically exposed person (PEP) screening.

Authorities are also working with Brazil’s Digital Council to block illegal betting platforms, strengthening efforts to curb unlicensed operations.

Advertising and Influencer Restrictions

Advertising enforcement has intensified under Ordinance 1,231/2024. The SPA is now actively issuing fines for violations, particularly in cases involving influencers, athletes, and public figures.

Upcoming Reforms to Watch

Despite recent regulatory tightening, Brazil’s iGaming sector continues to evolve, with several key proposals and reforms under discussion.

Expansion of Betting Scope

Bill 442/2022 proposes expanding betting options to include eSports and potentially legalizing additional verticals such as bingo. The bill remains under consideration, with no confirmed timeline for implementation.

Potential Casino Ban

In March 2026, President Lula proposed a complete ban on online casinos, while allowing sports betting to continue, but it has not yet been enacted.

Responsible Gambling Enhancements

The SPA has proposed additional player protection measures, including a national self-exclusion platform and expanded support systems for gambling dependency. These initiatives are still in development, with no confirmed rollout dates.

Future Regulatory Developments

Plans for a National Betting System and a consolidated inspection framework remain in the planning stage, aimed at improving real-time regulatory oversight once implemented.

Brazil’s iGaming License Framework

Brazil’s licensing system is centered on one key principle, and that’s keeping all but the most serious and financially secure of operators out. According to Law No. 14,790/2023, an operator must satisfy a set of strict eligibility criteria and demonstrate financial stability as well as the ability to comply with certain regulations to operate a casino or sports betting in the country.

Only Brazilian-incorporated legal entities can apply for a license. At least 20% of the company’s share capital must be held by a Brazilian partner, ensuring local participation in the sector.

Foreign operators cannot run platforms through offshore entities. They must either set up a local subsidiary or partner with a Brazilian company. Branches or representations of foreign firms alone do not qualify.

The licensing process is managed by the SPA under the Minister of Finance. Applications are submitted through the SIGAP system and must include full legal, financial, and technical documentation. The SPA has up to 150 days to review and approve applications.

A single federal license lasts five years and covers up to three brands under one authorization. Joint applications are permitted, making it easier for smaller operators to enter the market through shared structures. Operators were required to apply before the 2024 deadlines. From January 1, 2025, only licensed entities could legally operate.

On the financial side, the barriers are deliberately high. The license fee sits at BRL 30 million (roughly $6 million), and applicants must also show:

• Minimum paid-up capital of BRL 30 million.
• A financial reserve of at least BRL 5 million to cover operational risks and player payouts.

Once licensed, operators face ongoing obligations including audits, anti-money laundering measures, and responsible gambling policies. Annual renewal and inspection costs keep the pressure throughout the license period, not just at the point of entry.

Application Process for Obtaining a Brazilian iGaming License

Getting licensed in Brazil is a structured process with little room for shortcuts. Operators need to meet strict requirements before the SPA even begins reviewing their application.

1) Company Registration in Brazil

The first step is straightforward but non-negotiable. To qualify for a license, operators must incorporate a legal entity under Brazilian law, complete with a registered CNPJ, a physical headquarters, and effective management based in the country. Offshore companies cannot apply directly.

They must either set up a local subsidiary or partner with a Brazilian entity. Key executives, including directors and controllers, are also subject to integrity checks and must demonstrate relevant industry experience of at least three years before the SPA will consider the application.

2) Financial Stability & Guarantees

Brazil wants to see that operators can sustain themselves before they are handed a license. Regulators assess whether the business can cover player balances at all times, maintain operations during market fluctuations, and meet tax and regulatory fee obligations without strain.

Beyond that, operators must maintain financial guarantees and keep player funds in segregated accounts. This ensures withdrawals are always honored promptly, regardless of what is happening on the business side.

3) License Fees

Brazil’s iGaming license comes with a high cost, and that is a deliberate part of the country’s high-barrier entry strategy.

Upfront Fee: BRL 30 million.

License Validity: 5 years.

Coverage: Up to 3 brands per license.

Operators also face ongoing monitoring fees and revenue-based taxation obligations managed by the Ministry of Finance throughout the license period.

4) Technical Compliance & Certification

Before approval, operators must put their platforms through certified testing laboratories. The checks cover RNG fairness, system integrity, cybersecurity standards, and secure payment processing.

Passing once is not enough. Systems are subject to continuous audits and post-licensing verification.

Brazil also requires operators to use a “.bet.br” Domain, meaning platforms must be localized specifically for Brazilian users rather than simply redirecting international sites.

5) Anti-Money Laundering (AML), Counter-Terrorist Financing (CFT), and Know Your Customer (KYC) Compliance

Under Ordinance SPA/MF No. 1,143/2024, operators must build out a full anti-money laundering and counter-terrorist financing framework. The key obligations include:

• Risk-based customer identification and classification
• Mandatory KYC verification using the CPF, Brazil’s national tax ID
• Continuous transaction monitoring and suspicious activity reporting
• Reporting to the financial intelligence authorities, including COAF

Non-compliance here is treated seriously. Failing to meet AML requirements can result in license denial or outright revocation.

6) Responsible Gaming Measures

Player protection is not an afterthought in Brazil’s framework. It is a licensing requirement. Operators must put in place:

• Age verification for users aged 18 and above, including identity validation and facial recognition.
• Self-exclusion tools and customizable betting limits.
• Clear responsible gambling messaging across the platform.
• Monitoring systems to identify and flag problematic gambling behavior.

These measures are actively checked during audits, not just reviewed at the point of application.

7) Local Presence Requirement

A physical presence in Brazil is mandatory, full stop. Operators must maintain registered headquarters, operational infrastructure, and local management and compliance teams within the country.

This requirement exists so that regulators can exercise direct oversight and enforcement. It also means operators fall squarely within Brazilian tax jurisdiction from day one.

8) Advertising Regulations

Licensed operators can advertise, but the rules are strict. By Ordinance SPA/MF No. 1,231/2024, marketing has to be honest and not misleading. It can’t appeal to minors or vulnerable individuals in a potentially harmful way and must clearly present terms and risks if making a promotion. All marketing materials must also use the licensed ‘.bet.br’ domain, ensuring branding is localized specifically for Brazilian users.

All companies that have been licensed are allowed to advertise, while unlicensed ones face hefty fines and are blacklisted from the market if caught marketing to Brazilian players.

9) Consumer Protection Platform Registration

Operators must build platforms that give players full visibility into their activity. This means providing detailed transaction histories covering bets, deposits, and withdrawals, secure account management with verified identity checks, and accessible dispute resolution mechanisms

Onboarding must also follow multi-step verification protocols defined by law, ensuring every user is properly authenticated before they can access any betting services.

Taxes & Revenue breakdown

Brazil’s betting market comes with a clear and structured tax framework. Under Law No. 14,790/2023, operators pay a 12% tax on Gross Gaming Revenue, calculated as total bets minus prizes and income tax on prizes. This rate is set to climb progressively, reaching 13% in 2026, 14% in 2027, and settling at 15% from 2028 onwards.

The numbers already speak to how significant this has become. In just the first two months of 2026, betting taxes generated R$2.5 billion, a year-on-year increase of over 2,600%.

The 12% GGR tax is distributed across several sectors:

How Betting Revenue Is Distributed in Brazil?

The Brazilian government allocates tax revenue generated from licensed betting operators. The table below breaks down how these funds are distributed.

While operators retain 88% of GGR after the base tax, the full picture is more demanding. Corporate taxes include IRPJ at 15% plus a 10% surcharge, CSLL at 9%, and PIS/COFINS of up to 9.25%. Municipal ISS adds another 2% to 5% on top of that.

On the player side, net winnings above BRL 2,428.80 are subject to a 15% income tax, keeping the framework comprehensive from operator to end user.

Legal Risks and Compliance Obligations in Brazil’s iGaming Market

Operating in Brazil’s iGaming market comes with real legal weight. The SPA sets the rules, and not following them can lead to heavy fines, a lost license, or, in serious cases, criminal charges against the people running the business.

Operator Liability Under Brazilian Gambling Laws

In Brazil, both companies and the individuals leading them can be held responsible for compliance failures. Directors and executives cannot hide behind the company name if something goes wrong.

Violations that can trigger penalties include:

• Running a platform without proper authorization
• Giving false or incomplete information during licensing or operations
• Blocking regulatory audits or withholding data from authorities
• Promoting or supporting unauthorized gambling operators

The bottom line is that accountability does not stop at the company level. It goes all the way up to the people making decisions.

Enforcement Framework and Regulatory Action

The SPA does not sit back and wait for problems to surface. It actively monitors betting platforms, transactions, and user activity. Operators must report bettor activity and financial flows regularly, and any violations are handled under a clear sanctioning framework set out in Ordinance No. 1,233.

Regulators can also step in before a final decision is made. That can look like:

• A temporary suspension of operations
• Blocked access to systems or payment processing
• Frozen betting activity

Brazil’s enforcement approach is proactive. The goal is to catch and stop problems early, not clean up after them.

Fines, Suspensions, and Legal Consequences

The punishment fits the offense. Operators who fall short can face:

• Fines based on the type and impact of the violation
• License suspension or cancellation for serious or repeated breaches
• Operational shutdowns or payment blocks
• Criminal charges in cases involving fraud or harm to users

If there is a clear intent to deceive or if vulnerable users are harmed, penalties get significantly heavier under Brazilian law.

Is Brazil the Right iGaming Market for Your Business?

Brazil is not a market operators can afford to ignore. In its first full regulated year, it generated around $7 billion in GGR with over 25 million active bettors. The opportunity is real, but so are the challenges.

The upside is clear:

• A strong and growing betting culture
• Government-backed regulation brings long-term stability
• Billions in annual revenue with room to grow
• Users are steadily moving away from unlicensed platforms

The barriers are equally real:

• A BRL 30 million (~$6 million) license fee upfront
• Strict AML, KYC, and technical certification requirements
• Continuous platform monitoring through SIGAP
• Rising taxation and frequent regulatory updates

The black market adds another layer of difficulty. Illegal operators still account for an estimated 40 to 60 percent of market activity, with up to R$40 billion flowing through unlicensed platforms annually, creating real competitive pressure for licensed operators.

Brazil is worth it, but only for operators who are well-funded and compliance-ready. Startups or offshore-first businesses without local infrastructure will find the barriers steep. If you can meet the demands, the rewards are hard to match anywhere else in Latin America.

Wrapping Up…

Brazil’s iGaming market has come a long way in a short time. The rules are strict, the licensing process is demanding, and enforcement is only getting stronger. But for operators who are serious about compliance, the opportunity is hard to ignore.

Millions of active bettors, billions in annual revenue, and a government committed to keeping the market clean make Brazil one of the most exciting places to operate in right now. Brazil is ideal for large, well-funded operators willing to commit to full compliance. Smaller operators should consider hybrid or offshore strategies before entering.

FAQs

• Is online sports betting legal in Brazil?

  Yes, fully legal since January 2025. Law 14,790/2023 opened the door to licensed fixed-odds sports betting under SPA oversight. Licensed operators must meet strict KYC requirements, pay between 12-13% in GGR taxes, and operate under a .bet.br domain.

• Is bet365 allowed in Brazil?

  Yes. Bet365 was among the first 14 operators to receive a permanent license in January 2025. It operates legally in Brazil with local infrastructure and biometric verification in place.

• Does Brazil have sports betting?

  Yes, and it is well established. Regulated sports betting launched in January 2025, covering fixed-odds and virtual sports across 66 or more licensed operators. The market has already generated billions in GGR, with biometric and tax updates continuing to shape the landscape into 2026.

• What is the new gambling law in Brazil?

  Law No. 14,790/2023 is the legislation that brought online sports betting and iGaming under a formal regulatory framework. Enforced through SPA ordinances including No. 722/2025 and No. 1,143/2024, it covers licensing requirements, AML obligations, and player protection measures that came into full effect from 2025 onwards.

• What is the golden law in Brazil?

  Law 14,790/2023 is commonly referred to as the golden law. It legalized betting in Brazil, introduced the BRL 30 million licensing fee, and effectively turned Brazil into Latin America's leading regulated iGaming market from January 2025.