Inside Brazil’s betting market: Regulation, tax and entry
This article is part of a regional series on regulatory developments, produced in collaboration with Gaming Associates.
Following years of rapid but loosely monitored growth, Brazil’s online betting market began a new regulatory era on 1 January 2025, with the implementation of Law No. 14,790/2023. The move brings structure to a fast-growing sector driven by high mobile internet penetration and one of the world’s largest online populations, while introducing federal oversight aimed at enforcing compliance, taxation and consumer safeguards.
The law consolidates earlier developments, including the legalisation of sports betting in 2018, into a comprehensive system covering licensing, taxation, consumer protection and operational requirements.
With a population of over 200 million and a large online user base, Brazil is widely recognised as a mobile-first market. The widespread use of smartphones and digital payments has shaped user behaviour, making mobile functionality, real-time oversight and localisation important elements of regulation.
The framework focuses on key controls including geolocation, payment restrictions, cybersecurity requirements and continuous compliance monitoring to mitigate risks to consumers, financial systems and market integrity.
A new regulatory framework for online betting
The introduction of the regulated market followed a series of ordinances issued by the Secretariat of Prizes and Betting (SPA). From January 2025 onwards, only operators authorised at the federal level have been permitted to offer and advertise betting services in Brazil. Any operator providing services without authorisation may face enforcement measures, including financial penalties and blocking of digital platforms.
The regime introduces a nationwide licence for fixed-odds betting and certain online gaming activities. Licences are granted to legal entities established in Brazil and approved by the Ministry of Finance, allowing them to operate across the national territory.
In the early phase, 14 operators were issued full licences, while 52 companies received provisional authorisation subject to meeting further certification and compliance requirements.
The framework also introduces detailed operational rules covering advertising, player protection, geolocation enforcement and financial oversight. These measures are designed to ensure that betting activity remains within the regulated ecosystem and is subject to effective supervision.
Compliance and operational controls
Brazil’s regulatory framework places compliance at its core, emphasising localisation, financial integrity and consumer protection. Licensing requirements include the establishment of a locally incorporated entity and a minimum 20 percent shareholding by a Brazilian stakeholder.
As part of its player protection approach, the framework prohibits the use of credit cards for gambling transactions. Payments must originate from accounts linked to the verified player, strengthening control over funding sources and limiting the risk of excessive debt.
The framework requires operators to conduct identity verification using Brazil’s CPF (Cadastro de Pessoas Físicas) as part of its know-your-customer (KYC) procedures. Operators are required to implement systems to mitigate fraud, underage gambling and financial crime.
Geolocation laws prevent access from limited areas and guarantee that betting occurs inside permitted territories. Advertising for gambling is also allowed in Brazil, but it must adhere to stringent guidelines on behaviour and content. Meanwhile, marketing must comply with responsible gaming principles, and influencer promotions are subject to specific requirements relating to transparency, audience composition and messaging.
Independent verification and attestation
In the current Brazilian landscape, independent verification and attestation of compliance is mandatory, which can only be issued by accredited independent testing laboratories approved by SPA. The attestation of compliance is not just a one-time thing at the time of license application, but rather it is an ongoing activity done periodically to ensure the operator’s compliance with the regulatory requirements.
For initial certification, the operators are required to submit certification reports for their player account management systems, random number generators, return-to-player analysis, and the integration of their systems with SIGAP. In addition, they also need to implement a robust information security management system in accordance with ISO/IEC 27001 and be certified by an accredited management system certification body.
Operators are also obligated to demonstrate their commitment to compliance with the data security obligations by quarterly assessing vulnerabilities in their systems through internal and external vulnerability scans and taking mitigatory action. They are also required to have penetration testing done on their systems. They are also required to undergo an annual recertification audit, in which the test lab re-audits the system to ensure that no “critical updates” or software patches have compromised the platform’s transparency or security.
Taxation and fiscal developments
The regulatory framework outlines a clear taxation structure for operators. Initially, companies paid a 12 percent tax on gross gaming revenue (GGR), in addition to other corporate and social tax obligations. In 2025, the government proposed increasing this rate to 18 percent as part of broader fiscal changes, though the proposal is still being reviewed.
Players are required to pay tax on winnings above specified thresholds. These measures are intended to ensure that the regulated market contributes to public finances while maintaining oversight of financial flows.
For operators, these evolving tax conditions underline the importance of long-term financial planning and regulatory compliance.
Market entry strategy for operators
Entering Brazil’s regulated market requires operators to meet licensing, localisation and compliance requirements. This includes forming a Brazilian entity, ensuring 20 percent local ownership, and demonstrating financial and technical capability before receiving authorisation.
Licences are issued for a fixed period and involve significant upfront costs. Regulatory guidelines indicate that authorisation fees can reach BRL 30 million (approximately US$ 5.7 million), covering the operation of up to three brands.
In addition to licensing, operators must localise their platforms for the Brazilian market. This includes Portuguese-language interfaces, integration with domestic payment systems and compliance with local data protection and consumer laws.
Given the complexity of the regulatory environment, many operators rely on local legal advisers, compliance specialists and certified testing laboratories to navigate market entry requirements.
Market outlook
Brazil’s regulated betting market continues to gain scale in Latin America, driven by high levels of digital adoption and active consumer participation. The country is frequently cited as the fifth-largest digital market globally.
Speaking exclusively to SiGMA News, Chairman of Gaming Associates, Dr. Aftab Rizvi said, “Brazil has one of the most gaming-engaged populations and has emerged as a significant force in the global gaming market. Recognising the importance of safeguarding gaming enthusiasts, particularly younger audience, the government’s introduction of regulatory requirements is both timely and appropriate. These measures aim to protect individuals from undue influence, excessive debt, and data misuse, while also promoting transparency, ensuring safer and fairer gaming environments. This represents a positive and commendable step forward.”
Dr. Rizvi further added, “From my perspective, the industry continues to mature steadily, and the SPA has played a vital role in maintaining a balanced and fair framework that effectively serves both the players and licenses.”
As Brazil advances its regulatory structure, with ongoing developments in taxation and compliance, the framework continues to emphasise licensing, enforcement and consumer protection.
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