Brazil
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Introduction
Online gambling in Brazil became fully legal, regulated, and operational on January 1, 2025.
Getting there wasn’t easy. It took years of debate, slow progress, and a clear understanding of the economic benefits online betting could bring. The gambling legislation, known as Law 14,790 was finally passed in 2023. Before that most forms of gambling, except for official lotteries and horse race betting were illegal or unregulated. The new law has transformed Brazil’s attitude toward gambling and made it possible for the country to become one of the largest internally controlled and regulated gambling markets in the world.
Land Casinos in Brazil
After covering the present state of in-person gambling in Brazil, this article will focus on online betting and gambling in the country. When land-based regulations are passed or come into force, we will amend the article. Some of the ideas that have emerged from Senate committees include proposals with important economic implications for the National Treasury of Brazil.
In 2024, one senator stated that lawmakers couldn’t overlook authorizing casinos in tourist zones with the potential to generate R$100 billion (USD 20 billion) in revenue and create approximately 1.5 million direct and indirect jobs across the country.
With online gambling already taken care of, some lawmakers are trying to overturn the 1946 Decree Law introduced by President Gaspar Dutra that completely banned casinos in municipalities and districts. One proposal that passed committee included provisions to allow gambling establishments in tourist destinations or as part of integrated leisure complexes. Each state and the Federal District would be permitted one casino. Exceptions are made for larger states like Rio de Janeiro, Minas Gerais, Paraná, and Amazonas, which could have two because of their large populations and tourist traffic. São Paulo would be allowed three.
The proposals would also relax restrictions on bingo halls and let them operate in certain designated areas. Municipalities would be granted one bingo license per area. Additional licenses would be allowed based on population. Local governments would oversee bingo licenses and issue 25-year renewable permits to operators.
The changes would also address the sale of jogo do bicho at the federal level, a popular but illegal lottery-type draw game. One legal entity would operate the game for every 700,000 people in each state and the Federal District.
Online Gambling Regulation in Brazil
Brazil’s outright ban on most forms of gambling dates back to 1946, but in 2018, the legalization of fixed-odds sports betting broke the ice for what we see today.
While many lawmakers were reluctant to pass that law, the results of it seem to have inspired an interest in creating a fully regulated gambling environment in the country. When Law 14,790 was signed in December 2023, the gambling industry was formally recognized to be legitimate as a matter of law. The legal framework was finally solidified. That framework includes a stringent licensing process, consumer protections, and taxation rules that are transparent and accountable.
The 2025 Regulatory Framework
The licensing process for Brazil’s gambling industry will be managed by the Prizes and Betting Secretariat of the Ministry of Finance (SPA/MF). Participation won’t come cheaply with operators paying a fee of BRL 30 million, equivalent to approximately USD 5 million for a five-year license. Companies have to have a local office in Brazil and prove they have the technical, operational, and financial capabilities to manage gambling activities responsibly. Those requirements will help make sure that only well-prepared companies can operate in Brazil and ensure they will be held accountable.
While there were far more participants expressing interest in the initial license tender, only 14 operators were granted full licenses in the first tranche. Another 52 operators were granted provisional licenses valid for 30 days which time can be extended. Caesars Sportsbook’s Big Brazil was one operator that received a provisional license while BetMGM / MGM landed a full license in the first tender.
Licensees are permitted to operate up to three online betting sites per license.
Tax Implications
Beyond licensing, taxation is another important part of the framework. Operator Gross Gaming Revenue (GGR) is taxed at 18%, which should amount to a significant shot in the arm for the Brazilian economy. Players on the other hand will also be taxed a whopping 30% when winnings exceed BRL 2,112, or about USD 400. However, players will not be responsible for keeping track of winnings or paying the levy at tax time as it will be paid at the source and deducted from any cashouts. Government revenues are to be allocated to essential government services such as education and healthcare. Funds will also be spent on sports programs to get the most social benefits possible out of legalized gambling.
Consumer Protection
Brazilian gambling regulation revolves around consumer protection, with mechanisms in place to make sure operators don’t exploit their customers and prioritize their well-being, much like any other international gambling regulator.
Operators are required to establish and maintain responsible gambling measures such as self-exclusion that allows players to temporarily or permanently ban themselves from gambling. Deposit and betting limits are in place to help players manage their gambling and stay out of harm’s way financially. Marketing and advertising are limited and restrictions are in place to control misleading and aggressive messaging to protect minors and other vulnerable people.
KYC and Financial Crimes
One of the most modern and strict aspects of Brazil’s new gambling law deals with financial crimes. Money laundering is a huge concern when money is moving in and out of any entity at gambling levels and the government has gone all out to prevent money laundering and fraud. Some of the KYC (know your customer) requirements all online operators have to abide by include:
- Customer Identification Program (CIP)
- Customer risk assessment
- CPF database checks
- Document analysis
- Biometric verification and re-verification
- Enhanced due diligence (EDD)
- AML measures
- Ongoing monitoring
- Record-keeping
- Customer education and communication
Operators must integrate with Brazil’s national identification system, through the CPF database to verify player identities. CPF stands for Cadastro de Pessoas Físicas which in English is simply “Registration of individuals”. Even further, biometric verification and thorough transaction record-keeping are also required.
Most if not all of the digital systems are operated in real-time so when a customer registers, they are immediately known to the operator and the government which not only filters out problem gamblers, fraudulent players, and underaged persons but it also allows near-immediate onboarding to the system allowing players to play right away.
Brazilian gambling since 2018
After online betting was legalized in 2018, the lack of regulations opened the door to operators that used unfair practices. According to the Brazilian government, since 2023, and especially in 2024, the Ministry of Finance started to reverse the trend by putting rules in place to organize the gambling industry, protect consumers, and safeguard the public economy. With the rollout of new regulations, players can now verify the legality and compliance of gambling platforms easily before jumping in.
Betting with credit is now banned, first-deposit or other entry bonuses are prohibited, financial movements are strictly controlled, and beyond real-time interaction with the CPF, players must use facial recognition to log in.
However, increased access could still increase problem gambling behaviors no matter how robust deterrence and mitigation measures may be. That, coupled with the reality of Brazilian operators paying 18% of GGR in taxes, rather than using that money to competitively lower the house edge on games like slots or offering bonuses, which are banned at entry, means that Brazilian players might continue to look offshore for more value. Add the 30% levy on player winnings and it would not be surprising to see the framework adjusted in the future to compensate for real-world conditions. While the negotiated and codified framework is the best they could do, it was ultimately the result of a compromise driven by best practices, not the best possible solution. Even measures like attempting to block over 2,000 offshore gambling sites are not certain to succeed.
Current Brazilian Outlook
The Brazilian market is one of the last great frontiers of gambling. Granted, if the United States opened and regulated online gambling federally, or if pigs flew and China became a true market economy, the Brazilian market might be diminished in perspective or even dwarfed by China, but today, this country with over 200 million residents - many of them in the emerging middle class - presents an enormous opportunity for online operators. The government’s grant of 66 licenses on Day One (14 full and 52 provisional) attests to that. More options create competition and the consumer always does better when they have choices.
Players can seek and find nearly any kind of gambling online including sports betting, online casinos, bingo, and poker. Both players and operators are protected by state-of-the-art technology like biometric verification systems and real-time data analysis.
The strict rules in Brazil’s gambling laws give players confidence that licensed operators are reliable To get a license, companies have to prove they have enough money, the right skills, and a solid plan to run their business. On top of that, operators have to pay a BRL 30 million (about USD 5 million) fee and open an office in Brazil, which adds to the trust.
The Future of Regulated Gambling in Brazil
The future of gambling in Brazil looks bright after the launch of regulated online gambling and the legislative progress on land-based gambling liberalization. While the first framework is competent and functional it might have some weaknesses when it comes to capturing the flight of capital to offshore sites and the vulnerability of some players at unlicensed gambling sites or playing in jurisdictions that provide minimal protections.
The regulations might eventually be adjusted to handle things like that or to take advantage of new opportunities. Technology like blockchain and artificial intelligence could improve security and make operations more transparent, and that could add to Brazil’s growth into an internationally important gambling market. There’s also a chance for big investment with the possibility of casinos in tourist spots and high-population areas.
Conclusion
After nearly a century of gambling prohibition, Brazil has taken a large step and is set to take another one and create a modern regulated gambling industry on land too. The full legalization and regulation of online gambling means that Brazilians now have access to licensed platforms that operate transparently and provide player protection and technological innovation.
As the land-based gambling laws move closer to fruition the potential for casinos in tourist destinations and highly populated areas will offer even more safe and sane gambling, and the treasury’s coffers should swell with new revenue to be used for the greater good of society.
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