On January 1, 2025, Brazil officially launched its fully regulated fixed-odds betting market, marking a new chapter for online gambling in the country. The move follows years of legislative and regulatory hurdles that began with the approval of betting legislation in 2018 under then-President Michel Temer. After substantial delays and revisions, the law was finalized in 2023, with operators invited to apply for licenses by August 2024.
The Ministry of Finance confirmed that 66 companies have received full licenses to operate, while 52 were granted provisional licenses pending compliance with technical and financial requirements. This regulation comes amid growing criticism of the unregulated market, which had previously allowed illegal operators to dominate the space.
A Highly Regulated Landscape
Under Brazil’s new rules, operators must meet stringent requirements to ensure transparency, player protection, and financial integrity. Licensed operators are mandated to operate using “.bet.br” domains, maintain a physical presence in Brazil, and comply with strict anti-money laundering (AML) and counter-terrorism financing measures. Additionally, only bank transfers and Pix payments are permitted, with credit card and cryptocurrency transactions explicitly prohibited.
To further safeguard players, betting platforms must implement robust verification measures, including facial recognition technology to prevent underage gambling. These measures, combined with a 12% gross gaming revenue (GGR) tax and a 15% player winnings tax above BRL 2,824, aim to foster a responsible and transparent gambling ecosystem.
Licensing and Tax Revenue
The licensing process has proven lucrative for the government, with the R$30 million concession fee for each license generating over R$2 billion in revenue. Operators like Bet365, Betfair, and SportingBet secured their licenses, while prominent names such as PixBet and SportsBet.io failed to meet the requirements. Notably, each license allows operators to run up to three betting brands, enabling companies to maximize their market presence.
Companies granted provisional licenses must resolve pending issues, such as betting system certifications, within 30 days, extendable by another 30 days if supported by a certifying entity. Failure to comply could result in license suspension or revocation, further emphasizing the government’s commitment to maintaining high standards.
Combating Illegal Gambling
Regulation aims to curb illegal gambling, which had thrived in Brazil’s unregulated environment. The National Association of Games and Lotteries (ANJL) lauded the new rules, stating they would leave less room for illegal operators while providing players with safer alternatives. Websites failing to meet compliance standards will face domain blockages and operational shutdowns, ensuring only authorized operators can legally operate in the country.
Industry and Government Perspectives
The Secretariat of Prizes and Bets (SPA) led the regulatory efforts, with SPA President Regis Dudena highlighting the importance of the new framework. “The country is taking a fundamental step towards facing the potential problems associated with the sector,” he stated. “Starting January 1, all companies operating in Brazil will need to be Brazilian entities established under Brazilian law. We’ll know their shareholders, ultimate beneficiaries, and executives, ensuring complete oversight of both legal entities and individuals involved in this activity.”
Local operator KTO, among the first to secure a full license, expressed pride in meeting the rigorous standards. CEO Andreas Bardun remarked, “Our goal was clear: to be among the first licensed operators in Brazil… This achievement reflects the hard work and dedication of our team.” Similarly, André Feldman, CEO of Caesars Sportsbook’s Big Brazil, emphasized their focus on transparency and player safety.
A Step Toward a Safer Market
With its new betting framework, Brazil aims to not only regulate the industry but also address challenges such as problem gambling and economic risks. By requiring CPF identification, controlling financial transactions, and implementing advertising restrictions, the government seeks to create a sustainable and secure gambling environment.
As Brazil begins 2025, the country’s commitment to regulation sets a benchmark for responsible gambling, offering players a safer experience while ensuring operators adhere to strict standards. The journey to regulation has been lengthy, but the results promise to reshape Brazil’s betting landscape for the better.
Source:
Brazil Reveals 2025 Licenses for Sports Betting and Online Gaming, World Casino Directory, January 1, 2025.