We’re excited to share our latest insights into the Brazil gambling market, authored by Ivan Kurochkin, Partner and Head of Eastern Europe Desk at 4H Agency.
The Brazil gambling market is undergoing a major transformation as new regulations come into effect in 2025. Historically restricted, the sector is now opening up under Brazil gambling law, offering new opportunities for operators. With federal licensing for sports betting and online gambling, as well as strict responsible gambling and anti-money laundering (AML) measures, the market is set to become one of the most competitive in Latin America. Understanding the process of obtaining a gambling license in Brazil, along with costs, taxation, and compliance requirements, is crucial for operators entering this emerging landscape.
The Brazil gambling market is undergoing a major transformation as new regulations come into effect in 2025. Historically restricted, the sector is now opening up under Brazil gambling law, offering new opportunities for operators. With federal licensing for sports betting and online gambling, as well as strict responsible gambling and anti-money laundering (AML) measures, the market is set to become one of the most competitive in Latin America. Understanding the process of obtaining a gambling license in Brazil, along with costs, taxation, and compliance requirements, is crucial for operators entering this emerging landscape.
Key Insights
Regulatory Framework
The Secretariat of Prizes and Betting (SPA) oversees licensing and compliance for Brazil gambling licenses, covering online casinos, sports betting, and horse-race betting.
Types of Licenses
- Online gambling license (federal-level, valid nationwide).
- Sports betting license (federal-level, applicable to both online and land-based operations).
- Horse-race betting license (regulated separately by the Ministry of Agriculture).
- Lottery operations remain under a federal monopoly, but states can regulate their own lotteries.
License Requirements
Only Brazilian-registered companies can apply for a Brazil gambling license, with foreign investors needing a local partner holding at least 20% of the share capital.
Brazil Gambling License Cost
The cost for obtaining a gambling license in Brazil is BRL 30 million (~USD 4.9 million) for a five-year period.
Taxation
- Operators pay 12% of Gross Gaming Revenue (GGR) in taxes.
- Players’ winnings over BRL 2,259 (~USD 370) are taxed at 15%.
- Corporate taxation includes a 34% income tax.
Marketing & Advertising Restrictions
Strict rules limit promotional content, prohibiting gambling ads targeting minors, misleading claims, and endorsements from influencers.
Responsible Gambling & AML Compliance
Operators must implement self-exclusion options, betting limits, and fraud detection systems to comply with Brazil’s AML regulations.
Market Entry Challenges
State-level regulations differ, with some states imposing geographical restrictions on betting operations.
For a deeper dive into Brazil’s gambling market, licensing procedures, and compliance requirements, check out the full article here.
