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Is Gambling Legal in Brazil?

Regulated
As of January 2025, Brazil has a regulated online gambling and sports betting market with strict licensing, compliance, and consumer protection rules.
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    Key Information Highlights Legislation Timeline Requirements Sources

    Key Information

    Last Update 2025
    Regulatory Authority Secretariat of Prizes and Bets (SPA), Ministry of Finance
    License Cost Varies

    Regulation by Activity Type

    Casinos Prohibited
    Online Casinos Regulated
    Betting Regulated
    Online Betting Regulated
    Lotteries Regulated
    Poker Regulated

    Highlights

    • Brazil launched a fully regulated online gambling and sports betting market on January 1, 2025 under Law No. 14,790/2023.
    • Licenses are issued by the Secretariat of Prizes and Bets (SPA); only companies incorporated in Brazil with at least 20% Brazilian ownership qualify.
    • A gambling license costs R$30 million and is valid for five years; operators must hold a minimum capital reserve of R$5 million.
    • Operators pay a 12% tax on gross gaming revenue, while players are taxed 15% on winnings.
    • Strict KYC, AML, and responsible gambling requirements include facial recognition, deposit limits, and real-time data reporting to regulators.
    • Only debit cards and Pix payments are allowed; credit cards are prohibited for gambling transactions.
    • Unlicensed operators face site blocking, financial penalties up to R$2 billion, and blacklisting by Brazilian authorities.
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      Legislation

      Primary Legislation

      The legal framework governing gambling in Brazil is primarily established by federal laws and regulatory acts. The most significant and current pieces of legislation are:
      • Law No. 14,790/2023 ("Law of Bets"): Enacted on December 29, 2023, this law provides the comprehensive legal basis for the regulation of fixed-odds betting, online gambling, and related activities in Brazil. It sets out definitions, operational requirements, consumer protections, responsible gaming obligations, and anti-money laundering measures for both sports betting and online casino games.
      • Law No. 13,756/2018: This law initially legalized fixed-odds sports betting (both land-based and online) and established the framework for its regulation. Law 14,790/2023 further developed and expanded upon these provisions.
      • Article 50 of the Misdemeanours Law (Decree-Law No. 3,688/1941): This longstanding provision generally prohibits games of chance in Brazil, with exceptions now carved out by more recent legislation for regulated activities such as lotteries, horse racing, and, as of 2025, licensed online gambling and sports betting.
      • Ordinances Issued by the Secretariat of Prizes and Betting (SPA) and Ministry of Finance: A series of ordinances detail the technical, operational, and compliance requirements for licensed operators, including rules on player verification, advertising, anti-fraud measures, and payment methods.
      • Law No. 7,291/1984 and Decree No. 96,993/1988: These regulate horse-race betting in Brazil.
      • Law No. 13,155/2015, Law No. 13,756/2018, and Decree No. 9,327/2018: These regulate lotteries, including the federal instant lottery (LOTEX).
      • Law No. 14,455/2022: Authorizes the creation of federal health and tourism lotteries.
      Together, these laws form the backbone of Brazil’s gambling legal structure, establishing the permitted forms of gambling, the requirements for lawful operation, and the boundaries of legal and illegal gaming activities.

      Regulatory Authority

      Oversight and regulation of gambling activities in Brazil are centralized under federal authorities, with the following bodies holding primary responsibility:
      • Secretariat of Prizes and Betting (SPA): The SPA, operating under the Ministry of Finance, is the principal regulatory authority for gambling in Brazil. It is responsible for issuing ordinances, processing license applications, supervising operators, enforcing compliance, and overseeing consumer protection and responsible gambling measures.
      • Ministry of Finance: The Ministry of Finance provides overarching policy direction, issues regulations, and, through the SPA, directly supervises the gambling sector.
      • Caixa Econômica Federal: This state-owned bank holds the monopoly for the operation of federal lotteries and is responsible for their management and compliance with relevant laws.
      • National Telecommunications Agency (Anatel): Anatel collaborates with the SPA to enforce online gambling regulations, including blocking unauthorized gambling websites and restricting payment processing to unlicensed operators.
      These authorities collectively ensure that gambling activities in Brazil are conducted within the legal framework, focusing on market integrity, player safety, and the prevention of illegal gambling operations.

      License Types

      Types of Gambling Licenses in Brazil

      • Online Fixed-Odds Betting License: Covers sports betting and online casino games offered via the internet to Brazilian residents. This is currently the main license available following the regulatory changes effective from January 1, 2025.
      • Provisional License: Issued to operators that have applied but need to complete certain technical or compliance requirements. This license is temporary and subject to review and upgrade to a full license upon meeting all criteria.

      Eligibility and Ownership Requirements

      • Only companies incorporated or headquartered in Brazil are eligible to apply for a gambling license.
      • At least 20% of the company’s share capital must be held by a Brazilian individual or legal entity.
      • Foreign operators can participate by establishing a Brazilian subsidiary that meets these ownership criteria.

      Application Process

      • Applications must be submitted through the Secretariat of Prizes and Bets (SPA) platform, known as SIGAP.
      • Applicants must provide detailed documentation, including:
        • Business plans and financial projections
        • Proof of compliance with anti-money laundering (AML) and know-your-customer (KYC) protocols
        • Background checks of owners and key personnel
        • Technical certifications for gaming systems
        • Operational details and internal control procedures
      • The SPA reviews applications and issues a decision within 150 days.
      • Provisional licenses may be granted if certain documentation or certifications are pending. These are valid for 30 days, renewable once for another 30 days, during which all outstanding requirements must be fulfilled.

      Duration and Renewal Conditions

      • A full online gambling license is valid for five years.
      • Each license allows the operation of up to three brands under a single authorization.
      • Renewal requires continued compliance with all regulatory, technical, and operational standards, as well as a new application and payment of the licensing fee.

      Costs and Financial Requirements

      • The licensing fee for an online gambling license is R$30 million (approximately US$6.1 million) for a five-year period.
      • This fee must be paid upfront as part of the application process.
      • Operators must demonstrate sufficient financial capacity and transparency, including the submission of audited financial statements and proof of solvency.
      • Monthly inspection fees may apply, varying according to net income.

      Key Requirements for Obtaining and Maintaining a License

      • Operators must use the ".bet.br" domain to distinguish authorized platforms.
      • Strict KYC and AML procedures must be implemented, including age and identity verification, and checks against government restriction lists.
      • Operators are required to provide 24/7 customer service in Portuguese via free electronic and telephone channels.
      • Responsible gambling measures must be in place, such as self-exclusion tools, limits on playing time and losses, and prominent warnings about gambling risks.
      • Advertising must comply with strict rules, including prohibitions on targeting minors or using underage models.
      • Operators must ensure that only permitted payment methods are used (credit cards and cryptocurrencies are banned; only debit cards and Pix are allowed).
      • Ongoing compliance with technical, operational, and consumer protection standards is mandatory. Failure to comply can result in fines, license suspension, or revocation.

      Summary Table: Key Aspects of Brazil’s Gambling Licensing System

      Aspect Details
      License Types Online fixed-odds betting (sports betting, online casino), provisional license
      Eligibility Brazilian-incorporated company, 20% Brazilian ownership
      Application Platform SIGAP (SPA official portal)
      License Fee R$30 million (approx. US$6.1 million) for 5 years
      Duration 5 years (renewable)
      Brands per License Up to 3
      Processing Time Up to 150 days
      Key Requirements KYC/AML, ".bet.br" domain, responsible gambling, local customer support, permitted payment methods
      Renewal Requires full compliance and new fee payment

      Gambling Tax

      Tax Rates for Gambling Operators

      Type of Gambling Operation Tax Rate Tax Base
      Online Sports Betting & Online Casino 12% Gross Gaming Revenue (GGR)
      • The 12% tax is applied to the operator’s Gross Gaming Revenue, which is calculated as total bets received minus prizes paid out to players.
      • This tax is in addition to standard corporate income tax and other applicable federal or state taxes, which can bring the total effective tax rate for operators to approximately 36% when all levies are considered.

      Basis for Taxation

      • Gross Gaming Revenue (GGR) is the primary basis for taxation. GGR is defined as the total amount wagered by players minus the total amount paid out as winnings.
      • The 12% GGR tax is specifically earmarked for allocation among various government funds, including social security, education, sports, and tourism initiatives.

      Tax Reporting and Payment Requirements

      • Operators must register with the Secretariat of Prizes and Betting (SPA) and integrate their systems with the government’s real-time Betting Management System (SIGAP) to ensure transparency and accurate reporting.
      • All financial transactions, including bets, payouts, and tax obligations, must be reported in real time to the regulatory authorities via SIGAP.
      • Tax payments are typically due on a monthly basis, calculated on the GGR generated during the reporting period.
      • Operators are required to maintain detailed records of all transactions and provide periodic financial statements as prescribed by the SPA.
      • Failure to comply with reporting or payment obligations can result in administrative penalties, fines, or suspension of the operator’s license.

      Tax Incentives, Exemptions, and Special Provisions

      • There are currently no specific tax incentives or exemptions for gambling operators under the new regulatory regime.
      • All licensed operators are subject to the same 12% GGR tax rate, regardless of size or market share.
      • No special provisions for reduced rates or holidays have been announced as of April 2025.
      • Operators must also pay standard corporate taxes and other applicable levies in addition to the gambling-specific GGR tax.

      Summary Table: Key Taxation Elements

      Element Details
      Primary Tax Rate 12% of GGR
      Additional Taxes Standard corporate and federal/state taxes (total effective rate can reach ~36%)
      Tax Base Gross Gaming Revenue (bets minus prizes paid)
      Reporting System Mandatory real-time reporting via SIGAP
      Payment Frequency Monthly
      Tax Incentives/Exemptions None
       

      Prohibited Individuals

      Age Restrictions and Identification Requirements

      • The minimum legal age to participate in any form of regulated gambling in Brazil is 18 years.
      • Operators are required to perform rigorous age and identity verification before player registration, ensuring all players are over 18 and not listed on government restriction lists, politically exposed persons (PEPs), or sanctions lists.
      • Registration for online gambling requires facial recognition and a valid bank account for transactions. Credit cards are prohibited as a payment method; only debit cards and the Pix instant payment system are allowed.

      Prohibited Activities and Game Restrictions

      • Unlicensed gambling operations, including those based outside Brazil or not using the official ".bet.br" domain, are strictly prohibited. Access to unauthorized sites is blocked, and financial transactions with such operators are restricted.
      • Traditional land-based casinos remain illegal, with exceptions for state-run lotteries, horse betting, and regulated online betting and gaming.
      • Operators must not offer games to minors or individuals who could influence game outcomes.
      • All games must meet technical standards, including a minimum return-to-player (RTP) rate of 85% and transparent display of prize multipliers and win frequencies.
      • Only games certified and approved by the regulator are permitted. Live casino studios must have secure, designated locations with surveillance and restricted access.

      Advertising and Marketing Limitations

      • Gambling advertisements must not target individuals under 18 or feature minors in any promotional materials.
      • All advertising must include clear age restriction warnings and responsible gambling messages, such as “play responsibly.”
      • Advertisements must avoid misleading claims about winnings or associating gambling with financial or social success.
      • Operators are required to ensure that marketing materials do not encourage excessive or irresponsible gambling behavior.

      Responsible Gambling and Player Protection Measures

      • Operators must implement robust responsible gambling policies, including tools for self-exclusion and limits on deposits, losses, and playing time.
      • Players must have access to clear information about responsible gambling resources and support for problem gambling.
      • Operators are mandated to provide effective customer service and complaints handling mechanisms.
      • All player activity and game sessions must be recorded and retained for at least 90 days to ensure transparency and facilitate dispute resolution.
      • Withdrawal requests must be processed within a maximum of 120 minutes, ensuring timely access to player funds.
      • Strict anti-money laundering (AML) and fraud prevention protocols are mandatory, including real-time transaction monitoring and reporting to authorities.
      • A multi-ministerial working group is tasked with developing and overseeing harm prevention and support strategies for individuals affected by gambling-related issues.

      Geographic and Location Restrictions

      • Online gambling operators must be licensed in Brazil and use the ".bet.br" domain to distinguish themselves from unauthorized platforms.
      • Geolocation checks are recommended to ensure only players physically located within Brazil can access regulated gambling services.
      • State governments may accredit betting sites for local operations, but these are restricted to their specific jurisdictions.
      • Land-based gambling venues, aside from state lotteries and horse racing, remain largely prohibited except where specifically authorized by law.
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        Timeline

        Year/Date Event
        1941 Decree-Law No. 3,688 (the "Criminal Misdemeanors Act") bans most games of chance, effectively prohibiting casinos and most forms of gambling in Brazil.
        1967 Federal Law No. 5,768 regulates lotteries, allowing only state-run lotteries and horse race betting under strict government control.
        2018 Federal Law No. 13,756 legalizes fixed-odds sports betting (both land-based and online), but leaves regulation and implementation to the Ministry of Economy, creating a legal framework without immediate operational rules.
        2020 Initial drafts and public consultations begin for the regulation of sports betting, as authorities seek to operationalize the 2018 law.
        2023 President Luiz Inácio Lula da Silva issues an executive order to tax sports betting and initiates the regulatory process for the online gambling sector.
        December 2023 Law No. 14,790/2023 is enacted, establishing comprehensive regulation for fixed-odds betting and online gambling, setting licensing, compliance, and taxation rules.
        January 1, 2025 Brazil's regulated online gambling market officially launches, with the Secretariat of Prizes and Betting (SPA) issuing the first licenses to operators.

        Requirements

        Software Certification and Technical Standards

        • All gambling platforms must undergo certification by independent, accredited testing laboratories to ensure the integrity, fairness, and security of games and betting systems.
        • Operators must implement robust technical controls to prevent manipulation, fraud, and unauthorized access to gaming systems.
        • Software and systems must comply with transparency and reliability standards set by the Secretariat of Prizes and Bets (SPA).
        • Operators are required to use the exclusive ".bet.br" domain for their platforms, which distinguishes licensed operators from unauthorized ones.
        • Real-time data transfer to the government’s Betting Management System (SIGAP) is mandatory, allowing regulatory authorities to monitor financial flows and betting activity continuously.
        • Geolocation controls must be in place to ensure only users located in Brazil can access the platform, supporting compliance with jurisdictional restrictions.

        Data Protection, Privacy Measures, and Server Location

        • Operators must comply with Brazil’s General Data Protection Law (LGPD), ensuring the protection and confidentiality of all personal and financial data collected from players.
        • All player data, including registration and transaction records, must be securely stored and protected against unauthorized access, breaches, or leaks.
        • Servers hosting gambling operations and player data must be located in Brazil to facilitate regulatory oversight and data security.
        • Operators must implement strong encryption protocols for data in transit and at rest, as well as regular security audits and vulnerability assessments.

        Anti-Money Laundering (AML) and Know Your Customer (KYC) Procedures

        • Strict AML and counter-terrorist financing (CFT) policies are mandatory, including ongoing monitoring of player transactions and reporting of suspicious activities to authorities.
        • Comprehensive KYC procedures must be conducted before player registration, including age verification (minimum age 18), identity verification, and screening against government restriction lists, politically exposed persons (PEPs), and sanctions lists.
        • Operators must ensure that only players with valid Brazilian bank accounts can participate, supporting traceability and compliance with financial regulations.
        • Customer due diligence must be periodically updated, especially for high-risk or high-value accounts.

        Financial Reporting, Auditing Standards, and Record-Keeping

        • Operators are required to maintain meticulous records of all transactions, player activity, and financial flows for a minimum period specified by the regulator.
        • Regular financial reporting to the Secretariat of Prizes and Bets (SPA) is mandatory, including submission of audited financial statements and transaction logs.
        • Operators must implement systems for real-time reporting of betting and payout data to the regulatory authority via the SIGAP system.
        • Independent audits of both financial and technical systems must be conducted at intervals defined by regulatory standards.
        • Operators must ensure transparency in all financial operations and be prepared to provide data promptly upon request by regulators.

        Technical Implementation of Responsible Gambling Tools

        • Platforms must provide responsible gambling features, including self-exclusion options (with configurable periods from one day to six weeks), deposit and loss limits, and tools for players to restrict their own access or playing time.
        • Mandatory display of responsible gambling information and warnings about the risks of gambling addiction on all player interfaces.
        • Operators are required to implement real-time monitoring systems to detect signs of problem gambling and intervene where necessary, including offering support or restricting access.
        • 24/7 customer support in Portuguese must be available, including assistance for responsible gambling queries and self-exclusion requests.

        Sources

        Primary Regulatory Authorities

        Legislation Resources

        • Law No. 14.790/2023 – Comprehensive law establishing the regulatory framework for online gambling and betting

        Additional Official Resources

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          Important Information Notice

          Gambling regulations are subject to change. The information provided on this page was accurate at the time of publication, but may not reflect the current regulatory landscape. Always consult official sources for the most up-to-date information before making any gambling-related decisions.

          Last updated: 18 April 2025