After six years of a process to legalize online sports betting, Brazil finally has, as of January 1, a national market for fixed odds betting.
The country’s Ministry of Finance celebrated the achievement on its website, highlighting that “the companies that now make up the industry were selected after a rigorous authorization process, which ensured compliance with technical and financial requirements.”
Initially, 66 betting sites were authorized to operate legally in Brazil. Of these, 30 sites (from 14 companies) have received permanent authorization for the next five years, while the other 52 companies have received temporary authorization and will have to resolve issues related to the certification of the betting system, online games, and their integration in the next 60 days.
The complete list can be accessed here. In total, BRL 2,010 million ($324,695,400) in subsidies were paid to the Federal Government.
Among the notable absentees from the licensees are PixBet, BetMotion, and SportsBet.io, the latter of which announced the closure of its Brazil operations earlier this week.
Of the full licenses granted by the Secretariat of Prizes and Bets (SPA), A2FBR LTDA received two to operate six betting brands in Brazil with each license being able to include up to three skins.
Andreas Burdon
Local operator KTO was one of the 14 companies to receive a full license. “From the start, our goal was clear: to be among the first licensed operators in Brazil,” CEO Andreas Bardun said in a LinkedIn post. “While others claimed the title simply by applying, we understood the journey was far from over until full approval was secured.”
“This achievement reflects the hard work and dedication of our team and we’re excited to bring a fully licensed and trustworthy experience to our customers in Brazil,” he added.
André Feldman
For its part, Caesars Sportsbook’s Big Brazil has been granted a provisional license pending final approval. “Caesars Sportsbook’s goal is to provide a safe experience for customers and ensure that all regulations are met,” Feldman Big Brazil CEO André Feldman said in a statement. “The Caesars Group is a giant in the sector, with a robust structure.”
“We fight for regulation in Brazil and the brand is committed to acting as transparently and responsibly as possible to provide our users with the best Vegas experience in Brazil,” he added.
Brazil’s long way to regulating online gaming
After President Luis Inácio Lula da Silva’s (PT) decision to regulate the sector – which should have been done within two years from the approval of Law 13,756/18 – there was a long process of approval of the bill in the Federal Congress.
The regulation has been criticized by various sectors of society, including the government itself, but supporters claim that the Ministry of Finance’s ordinances are efficient and that the fight against illegal websites should be the priority for a safe and sustainable market.
Regis Dudena, Secretary of Prizes and Gaming
According to the report, the lack of regulation since 2018 has allowed the emergence of platforms operating with unfair practices, but now the regulations in place “will make it possible to correct structural problems in the sector and mitigate risks associated with the practice of betting, such as problem gambling and over-indebtedness.”
Among the main measures that will come into force are the prohibition of betting credits and entry bonuses, the requirement that bettors identify themselves using CPF and facial recognition, and strict control of financial flows.
Operators will pay a taxation rate of 12% of gross gaming revenue (GGR), with other taxes taking the total effective rate to around 36% according to the National Association of Games and Lotteries (ANJL). Additionally, there will be a 15% tax on player winnings above BRL2,824. These, as well as other actions, are intended to create a safer environment for users, reinforcing the entertainment nature of the practice.
In addition, operators must be constituted by Brazilian legislation and comply with rules related to the prevention of money laundering, financial security, and responsible gaming practices. According to the ministry, the control of financial operations will be strict, with constant monitoring of transactions, identification of suspicious activities, and application of containment measures, such as alerts and temporary blocking of accounts.
Companies that do not comply with the rules will not be allowed to operate in Brazil. In addition to the closure of their operations, companies considered illegal will not be allowed to carry out any type of promotion in the country, either through advertising or sponsorship.
Fernando Haddad, Minister of Finance of Brazil
Regis Dudena, Secretary of Prizes and Gaming, defended the regulation: “The country is taking a fundamental step towards facing the potential problems associated with the sector. The conclusion of the regulation and the completion of the first round of authorizations place fixed-odds bets offered nationwide under state control.”
“We start 2025 with strict and clear rules, as well as mechanisms to enforce them and operators to hold accountable. The imposition of these rules and their enforcement are the result of a huge effort by the Ministry of Finance, under the command of Minister Haddad and President Lula,” he concluded.