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On January 1, Brazil’s much-anticipated regulated online betting market went live, marking a significant milestone in the country’s gambling industry. So far, 14 companies have received full operating licenses, while 52 others hold provisional licenses and must address specific issues before they can fully launch.
The move to legalize online betting in Brazil has been a long process, beginning in November 2018 when the national congress approved initial legislation. Then-President Michel Temer signed it into law the following month. However, it took until December 2023 for the chamber of deputies to give final approval, allowing regulations to move forward.
In 2024, the Secretariat of Prizes and Bets (SPA) outlined the requirements for licensing, and applications opened in May. Operators had until August 20, 2024, to meet these requirements and qualify for inclusion in the January 2025 launch.
Provisional licenses have been granted to operators who paid the BRL 30 million (£3.9 million/€4.7 million/$4.8 million) licensing fee but faced delays in obtaining necessary certifications. These provisional licenses are valid for 30 days but can be extended for another 30 days if certifying entities support the extension.
SPA chief Regis Dudena emphasized the importance of the launch, stating that it marks a critical step toward creating a safer, regulated betting environment. “The conclusion of regulation and initial licensing places fixed-odds betting under state control,” Dudena said. “Strict rules and enforcement mechanisms will ensure operators remain accountable and provide a safer experience for bettors.”
The current licensing structure allows each license to cover multiple betting brands, offering operators flexibility in how they approach the market.
Operators who have secured full licenses have expressed excitement about the opportunities the regulated market brings. Many see this as a chance to offer a trustworthy, fully compliant betting experience to Brazilian customers.
Meanwhile, companies with provisional licenses are actively working to address outstanding issues, such as system certification delays, to achieve full approval. Industry leaders are optimistic about the potential for growth in Brazil, given its vast population and enthusiasm for sports betting.
Under the SPA’s 2024 guidelines, licensed operators are required to use “.br” domains to ensure transparency and make it easy for bettors and authorities to identify legal platforms. Additionally, bettors must register using facial recognition technology to prevent underage gambling.
All monetary transactions must be conducted through accounts authorized by Brazil’s Central Bank, and the use of credit or cryptocurrencies for betting is prohibited.
Operators will pay a 12% gross gaming revenue (GGR) tax, with additional levies bringing the effective tax rate to approximately 36%. Player winnings above BRL 2,824 will also incur a 15% tax.
The National Association of Games and Lotteries (ANJL) believes the new regulations will help curb illegal gambling and create a safer environment for bettors. “By enforcing these rules, unlicensed operators will have less room to operate, and Brazilian bettors will be better protected,” the association stated.
The ANJL also commended the decision to grant provisional licenses, calling it a “sensible and fair” measure to ensure continuity for operators during the certification process. “This approach avoids the risk of driving customers to the illegal market,” the group concluded.
Sources: IGB
