Brazil is the largest country in South America and home to over 215 million people. Following the full launch of a regulated online gambling framework in January 2025, the Brazilian gambling market has quickly become one of the world’s most significant. It spans online casino games, sports betting, and racing, while land-based casinos remain prohibited.
The local player base is digital, engaged, and evenly split across gender. The average age is around 38, and Brazilians respond strongly to creative promotions and celebrity marketing. With high digital penetration, a culture of instant payments (e.g., Pix), and a large untapped audience, Brazil’s gambling market offers tremendous scale and profitability for licensed operators.
Importantly, this is still an early-stage market. Despite the launch of the brazil gambling license, competition remains moderate in several verticals, creating opportunities for new entrants to build brand equity.
Timeline: From Prohibition to Legalization
For much of the 20th century, gambling in Brazil was banned. Casinos were outlawed in 1946 due to religious pressure, and informal betting like jogo do bicho (an illegal lottery) became embedded in the cultural fabric.
Horse racing maintained a niche presence, while poker was recognized as a game of skill and gained popularity during the pandemic. By the 2010s, offshore online gambling was already widespread, with billions flowing out of the country and little consumer protection.
It wasn’t until late 2023 that Brazil passed its federal online gambling law, setting the stage for a legal, transparent ecosystem. The market officially opened in January 2025, offering a comprehensive framework for online sports betting, virtual casino games, and fixed-odds wagers.
Brazilian Gambling Licensing Conditions
Licenses: Sports Betting and Online Gambling
Brazil offers a unified gambling license in Brazil at the federal level, covering both online gambling and land-based sports betting. The license permits:
• Online casino (including live dealer) games
• Slots (jogos on-line de linha)
• Crash, blackjack, roulette, ball & number games
• Virtual sports and virtual racing
• Betting exchange and multiple bet structures
• Sports betting across all major leagues
The Brazil gaming license also applies to B2B providers and affiliates, although specific requirements for these categories are still pending full regulatory detail.
In addition to federal licenses, states like Minas Gerais, Paraná, and Rio de Janeiro have introduced their own sports betting regulation Brazil frameworks. Operators may need to align with both national and regional rules.
All other forms of gambling — including physical slot machines and land-based casino venues — remain prohibited under current law.
License Requirements
To apply for a Brazil online gambling license, applicants must:
• Be a company incorporated under Brazilian law
• Base headquarters and management within Brazil
• Include a Brazilian partner with at least 20% ownership
• Choose an eligible entity type: Ltda. or Sociedade Anônima(S.A.)
Foreign operators gambling in Brazil must enter via a local subsidiary that satisfies these conditions.
The application process is open year-round. However, mergers, acquisitions, or structural changes trigger a mandatory review by the regulator. These measures aim to promote transparency, accountability, and responsible gambling Brazil practices.
License Cost, Term & Taxation
A federal brazil gambling license includes the following terms:
• License fee: R$30 million (~US$5.5 million)
• Validity: 5 years
• Brand allowance: Up to 3 online brands per license
• Non-transferable: Licenses cannot be sold or reassigned
As of 2025, operators are taxed as follows:
• Gambling tax:
o 12% GGR (until Sept 30, 2025)
o 18% GGR (starting Oct 1, 2025)
• Social contributions (PIS/COFINS): 9.25% GGR
• Local ISS tax: 2–5%, depending on the municipality
• Monthly inspection fee: R$54,419 to R$1.9 million
The total tax burden can exceed 50% of gross revenue in certain jurisdictions — one of the key concerns for operators facing Brazil gambling tax hikes.
Winnings from fixed-odds bets are taxed at 15% on net gains, and only if they exceed the national IRPF income threshold. This policy supports gradual adaptation to Brazil’s long-term gambling regulation strategy.
Responsible Gambling and AML Compliance
In terms of Responsible Gambling Obligations, operators must:
• Offer self-exclusion and pause functions
• Allow limits on time, losses, deposits, and number of bets
• Show reality checks and require re-authentication after 30 min of inactivity
• Provide addiction risk assessments and referral options
• Maintain a clear “Responsible Gambling” section on their platforms
• Train staff on ethical conduct and social responsibility
Advertising must:
• Display “18+” and addiction warnings (≥10% of space)
• Avoid targeting minors or promoting unrealistic winnings
• Be clearly marked, even when published by affiliates or influencers
In terms of AML and KYC Brazil Requirements, under the supervision of COAF and SPA, licensed operators must:
• Establish AML policies and submit SARs or zero-activity reports
• Flag high-risk transactions (e.g., involving PEPs or obscure sources)
• Verify players making:
o Bets over R$2,000 (~US$370)
o Deposits/withdrawals over R$50,000 (~US$9,200)
• Use facial recognition, cross-check databases, and validate CPF numbers
• Store all data for at least 5 years
• Suspend or freeze accounts during fraud or match-fixing investigations
• Maintain local AML teams and systems in Brazil
Advertising Rules
All advertising must:
• Promote only licensed gambling
• Be age-gated and not mislead vulnerable audiences
• Avoid aggressive, misleading, or excessive risk claims
• Provide clear opt-outs
Operators cannot:
• Offer welcome bonuses or revenue-based incentives
• Use language suggesting guaranteed success or wealth
• Promote gambling to minors or feature sexualized content
• Advertise in schools, hospitals, or children's venues
Operators are responsible for affiliate behavior and must:
• Use written contracts outlining compliance duties
• Keep affiliate materials for regulatory review
• Avoid partnerships targeting children or youth sports
While operators can sponsor cultural and sports events, the branding must not include promotional messages or odds. Advertising is limited by region — state-licensed operators may only promote services locally.
Challenges Facing New Operators
While the Brazilian gambling market offers scale and potential, it also presents unique challenges — especially for new entrants.
Political Instability
Finance Minister Fernando Haddad, who oversees the SPA, has openly criticized the industry and expressed support for banning online gambling altogether. His comments contribute to legal uncertainty and risk sudden Brazil gambling law changes.
Regulatory Overreach and Fragmentation
Despite SPA’s role as national regulator, local public defenders and consumer bodies are increasingly launching lawsuits and imposing additional rules. This patchwork oversight complicates compliance and increases legal risk.
Advertising Uncertainty
A Senate-approved bill (PL 2.985/2023) proposes major advertising restrictions:
• Limited broadcast windows
• Full bans on print, influencer, and stadium ads
• Strict warnings and age-gated platforms only
If passed, this law would severely restrict marketing — especially damaging for new brands trying to establish presence in the brazil regulated gambling ecosystem.
Tax Hikes and Future Sin Taxes
From October 2025, the gambling tax will increase to 18%, with total burdens potentially exceeding 50%. A new “selective sin tax” could come into effect in 2027 — with no defined upper limit. These fiscal shifts threaten business models built around the earlier 12% rate and may deter future investment.
Public Perception and Media Pressure
Mainstream narratives increasingly frame gambling as harmful, with comparisons to tobacco or alcohol. Without public education or official economic data from SPA, the industry struggles to shift perception — leaving operators vulnerable to political pressure and negative headlines.
Brazil offers massive opportunity — but with equally significant risk. For operators, success in this market requires more than just licensing. It demands agility, compliance expertise, and trusted Brazil iGaming consulting partners who understand the evolving regulatory and political terrain.
If you're planning how to get a gambling license in Brazil, now is the time to act — strategically, transparently, and with a long-term view.
FAQs: Gambling License in Brazil
What types of gambling are legal?
The brazil gambling license covers fixed-odds betting, which includes sports betting, online casino games, virtual games, and land-based sports betting. Brazil casino license for physical venues does not yet exist.
What is the legal gambling age?
18 years old.
Can foreign operators get licensed?
Yes — but only through a Brazilian-incorporated subsidiary with a local partner holding at least 20% ownership.
What’s the license cost?
$30 million (~US$5.5 million) for a 5-year federal gambling license Brazil.
How are player winnings taxed?
At 15% on net winnings, exceeding the IRPF threshold.
What are KYC requirements?
Players must verify:
• Full name, nationality, CPF number
• Address, phone, email, IP address
• Valid photo ID (passport, RG, driver's license)
• Facial recognition and proof-of-life
• Confirmed contacts (via SMS/email)
• Additional authentication may be required
Only after completing CPF verification for gambling and full KYC, players may begin betting.
Looking to enter Brazil regulated gambling market?
4H Agency provides expert consulting on licensing, compliance, and tax structuring across provinces. Contact us today via Emailor Telegram to build a secure strategy for Brazil.