The Brazilian gambling market will officially open for regulation on January 1, 2025, and operators must obtain a federal license to enter the market. The license is issued by the Secretariat of Awards and Betting (SPA), with an application fee of 30 million Brazilian Reais, valid for five years, allowing the operation of up to three brands. Applicants must meet strict legal, financial, and technical requirements, including anti-money laundering measures, KYC verification, and the use of the exclusive ".bet.br" domain. As the largest gambling economy in Latin America, Brazil offers significant market opportunities for international operators.
Overview of the Brazilian Gambling Market
After nearly seven years of legislative process, online gambling in Brazil was officially regulated in January 2025. As the largest economy in Latin America, Brazil has a large sports fan base and high internet penetration rate, providing a broad market space for gambling operators.
Since the opening of the regulated market, the number of licensed operators has grown rapidly from the initial 14 to 78 by August 2025. Market research shows that Brazilian players account for 15% of global gambling website traffic, and the total gambling revenue (GGR) of the regulated market is expected to reach 10 billion US dollars by 2029.
Types and Features of Licenses
Brazil offers three main types of gambling licenses. The federal license is the primary form of license, issued by SPA, valid for five years, allowing the operation of three brands, with an application fee of 30 million Brazilian Reais. This license covers sports betting and online casino games, including slot machines and instant games.
Temporary licenses are for applicants who have paid the license fee but face technical certification delays, valid for 30 days and extendable. State or municipal licenses are issued by local lottery agencies, costing less than federal licenses, but with limited operational scope, such as the license from Loterj in Rio de Janeiro state, which is only valid within the state.
Eligibility and Core Requirements
Applicants must register a company in Brazil, with at least 20% of capital from Brazilian sources. Technical requirements include betting systems passing ISO-27001 and other technical certifications, payment systems complying with Sicoaf/Bacen standards, and obtaining certifications from third-party organizations such as GLI or GA Lab.
Compliance requirements include implementing anti-money laundering (AML), Know Your Customer (KYC), and Counter-Terrorism Financing (CTF) measures. Operators must use the exclusive ".bet.br" domain, accept electronic transfer payments, but prohibit credit card and cryptocurrency transactions.
Application Process and Timeline
Applications are submitted through SPA's electronic platform SIGAP, accessed using e-CPJ or e-CNPJ digital certificates. The initial application window opens in May 2024 and closes on August 20. SPA typically reviews applications within 150 days, followed by a 45-day approval period by the Ministry of Sports (MESP).
Once approved, applicants have 30 days to pay the 30 million Reais license fee. Temporary license holders must submit complete documents within 30 days, extendable up to 90 days. The entire process takes up to 180 days, requiring advance planning.
Cost Structure and Tax Burden
The initial cost of a five-year license is 30 million Brazilian Reais. After operation, operators must pay a 12% tax on total gambling revenue (GGR) and a 34% corporate profit tax, plus social contributions and municipal taxes, bringing the total tax burden close to 50%.
Additionally, operators must maintain mandatory financial reserves and bear ongoing compliance costs. Industry organizations warn that high taxes may push some businesses towards unregulated channels, affecting the healthy development of the market.
Regulatory Authorities and Responsibilities
The Brazilian gambling market is regulated by multiple agencies. The Secretariat of Awards and Betting (SPA) under the Ministry of Finance is the main regulatory body, responsible for issuing licenses and market supervision. The Ministry of Sports (MESP) is responsible for maintaining the integrity of sports events and gambling.
The Brazilian Federal Revenue Service (RFB) handles tax matters, the Financial Activities Control Council (COAF) is responsible for anti-money laundering and counter-terrorism financing regulation, and the Central Bank (BCB) regulates payment arrangements to prevent unauthorized operator transactions. Each state also has its own lottery regulatory agency, such as Loterj.
Market Prospects and Opportunities
Brazil is expected to become one of the top three online gambling markets globally. Sports betting is currently the dominant area, expected to account for 55% of online GGR in 2025, with football accounting for 86% of sports betting GGR. The market has huge growth potential, thanks to a large population base and active sports culture.
Obtaining a license not only allows operators to legally enter the market but also permits the use of the ".bet.br" domain to sponsor football clubs and sports events, which is an important way to build brand recognition and win customer trust. Additionally, discussions on the legalization of land-based casinos are ongoing, potentially bringing additional opportunities.
Challenges and Considerations
Despite the huge market potential, operators still need to consider multiple challenges. High license fees and taxes affect profitability, and market competition is increasingly fierce. Compliance requirements are strict, requiring continuous resource investment to meet regulatory demands.
Operators also need to be aware of the differences between federal and state regulations to ensure legal operation within the respective jurisdictions. Operators without federal licenses face risks such as website blocking and payment processing restrictions.
