As of January 1, 2025, Brazil has fully implemented the regulation of its sports betting sector, requiring operators to obtain licenses within the country as stipulated in Law 14.790/2023.
The sports betting sector in Brazil has undergone significant transformations. With the approval of this regulation, the country positions itself to stand out as one of the largest global betting markets. This shift not only regulates the industry but also creates a safer environment for players, encourages foreign investment, and strengthens the nation’s economy. The new Brazilian regulation brings significant changes, presenting both challenges and opportunities for the betting sector.
The Evolution of Betting in Brazil
Betting has always held a prominent place in Brazilian culture. Until the early 1940s, dice games were very popular before being banned. This prohibition remained in place until the 1970s. Starting in the 1980s, certain games like horse racing, slot machines, bingo, and others were legalized.
Discussions about new online betting regulations began in 2018, with a four-year deadline that expired in 2022. It was only in March 2023, with the creation of ABRADIE (a nonprofit organization established to provide a safe environment for online bettors in Brazil), that significant progress was made toward legalizing and ensuring secure regulation. Finally, in July 2024, the process of online gaming regulation was concluded, and it was implemented on January 1, 2025. Today, any operator continuing to operate without a license is subject to having their websites blocked and facing heavy fines.
What the Industry Can Expect from a Newly Regulated Giant Market Like Brazil
With this new regulation, the Brazilian betting sector is poised for significant growth in 2025. With a regulated market, Brazil positions itself as one of the most promising destinations for the betting and online gaming industry. This opens up numerous opportunities for companies looking to enter or expand operations in this market. However, choosing trustworthy partners and adapting to the new rules is essential for operators’ success. At Egaming Services, we offer specialized strategic consultancy, assist in selecting the best licenses, and provide full support in compliance and legal requirements.
New Rules for Brazil’s Gaming Market
Foreign operators must establish headquarters in Brazil to offer services. Operators must pay a 12% revenue tax in addition to existing federal and state taxes. Authorized operators must use the .bet.br domain to distinguish themselves from unauthorized platforms. Credit cards are no longer accepted as payment methods; only debit cards and Pix (Brazil’s instant payment system) are allowed. Licensed operators must comply with strict integrity, responsibility, and transparency standards defined by ABRADIE and IBJR. Each player is subject to a 15% tax on winnings, a significant reduction from the initially proposed 30%. Companies operating without a license face fines of up to BRL 2 billion and website blocking. Operators must conduct rigorous age and identity checks during registration, ensuring players are at least 18 years old and not on government-restricted lists like PEPs or sanctions lists. Strict advertising rules prohibit ads targeting minors or using models under 18 in promotional materials.
Challenges and Advantages of Exploring Brazil’s Betting Market
Brazil’s strong sports culture offers immense advantages for betting operators, including a large and growing consumer base. However, new licensing rules, taxes, and compliance requirements demand that foreign companies adapt to a complex regulatory environment, which may pose initial challenges. Additionally, ensuring transparent and responsible operations, along with meeting strict payment and advertising standards, requires operators to invest in infrastructure and compliance. To comply with local laws, it is essential to work with a trusted partner who can provide specialized support throughout the process. On the other hand, by adhering to the established guidelines, companies can benefit from a solid and regulated market, offering legal security and a reliable reputation in Brazil.
Conclusion
Brazil is preparing to become one of the world’s largest iGaming markets, bringing both challenges and significant opportunities. This new regulation provides a safer environment for players and establishes a compliance system that ensures transparency and integrity in the sector. For operators, this means adapting to new requirements such as obtaining licenses in Brazil, paying specific taxes, and adhering to strict responsibility rules. Additionally, structuring business operations to comply with the new rules is essential for efficient and secure market entry.
At Egaming Services, we are ready to help operators and suppliers in the gaming industry adapt to these changes and explore the many opportunities in this growing market. We work not only with operators but also with service providers like game providers, PSPs, and other essential solutions for the industry’s success. Trust our expertise to support your expansion in Brazil, providing specialized support in licensing, compliance, infrastructure, and market entry strategies.
