Brazil Officially Opens Regulated Online Betting Market
Brazil has taken a landmark step in its gambling industry with the official launch of its regulated fixed-odds betting market on January 1, 2025. This development comes after years of anticipation, as the country sought to rein in unregulated operations and establish a structured framework for betting activities.
The journey began in 2018, when the National Congress approved online betting legislation, but the final implementation was delayed until late 2023. Now, Brazil’s Ministry of Finance, working through the Secretariat of Prizes and Bets (SPA), has authorized 66 operators with full licenses, alongside 52 provisional approvals.
Stringent Requirements for Operators
Brazil’s regulatory framework mandates strict compliance from betting operators. Licensed entities must operate under Brazilian law, maintain physical offices within the country, and use exclusive “.bet.br” domains for their platforms. Payment options are tightly controlled, allowing only bank transfers and Pix transactions while prohibiting credit cards and cryptocurrency payments.
To ensure player safety, operators must verify bettors through facial recognition technology and CPF registration, preventing underage gambling and unauthorized access. Operators are also subject to rigorous financial oversight, requiring adherence to anti-money laundering (AML) protocols and transparency in their governance structures.
Provisional Licenses: A Temporary Window
Operators granted provisional licenses face a 30-day period to address outstanding requirements, such as certifying betting systems and ensuring technical compliance. This window can be extended by an additional 30 days if necessary. Failure to resolve these issues could result in license suspension or permanent disqualification, underscoring the SPA’s commitment to maintaining high standards.
Notably, the provisional framework allows these operators to function temporarily while demonstrating their ability to meet regulatory demands, offering a pragmatic approach to transitioning into a fully compliant market.
Industry Players and Tax Implications
Major international brands such as Bet365, Betfair, and SportingBet are among the operators to secure licenses, joining a total of 300 authorized betting brands in the Brazilian market. In contrast, notable names like PixBet and SportsBet.io failed to meet requirements and are absent from the licensed list.
Operators must pay a concession fee of R$30 million to secure a license, generating over R$2 billion in revenue for the federal government. Additionally, they face a 12% gross gaming revenue (GGR) tax, with the effective rate reaching approximately 36% when including other levies. Players will also be taxed 15% on winnings exceeding BRL 2,824.
Combatting Illegal Gambling
The new framework is designed to combat the once-thriving illegal gambling sector, which had operated in Brazil’s unregulated market. With clear rules and strict enforcement, the government aims to protect consumers while reducing the influence of unlicensed operators. Websites found operating outside the regulatory framework will face immediate suspension and domain blockages.
The National Association of Games and Lotteries (ANJL) expressed confidence in the new system’s ability to curb illicit activities. “Illegal operators will have less and less space, and consequently, Brazilian bettors will be more protected,” the association stated.
Perspectives from Industry Leaders
The launch has been met with enthusiasm from licensed operators. Andreas Bardun, CEO of local operator KTO, described the achievement as the result of “hard work and dedication,” emphasizing their commitment to delivering a trustworthy betting experience. Similarly, André Feldman, CEO of Caesars Sportsbook’s Big Brazil, highlighted the brand’s dedication to transparency and responsible gaming as key priorities.
A Safer Future for Bettors
The introduction of a regulated betting market represents a pivotal moment for Brazil, combining opportunities for economic growth with a strong focus on player protection. By implementing clear guidelines, robust verification systems, and responsible gaming measures, Brazil seeks to reshape the perception of betting as a secure and transparent form of entertainment.
As the market matures, the success of these initiatives will likely set a precedent for how other countries approach gambling regulation, ensuring both players and operators thrive within a well-regulated environment.