Online gambling has always been a major industry in Brazil, even in the absence of a formal regulatory framework. In 2022, Brazil was responsible for over 20% of the global online gambling traffic, showcasing the immense popularity of gambling in Brazil.
It’s safe to say that Brazil’s iGaming sector is enormous, with 86.43% of sports enthusiasts admitting to engaging with online betting services. For a long time, the lack of proper Brazil gambling regulation meant that players had to turn to foreign platforms or Brazilian-based sites operating from overseas. This gap in Brazil online gambling regulation has allowed other countries to profit from Brazil’s strong interest in the Brazil iGaming market. However, in an effort to reclaim lost revenue, estimated at $1.5 billion for 2023, according to Statista, Brazil’s government has introduced new Brazil gambling regulations aimed at boosting the Brazil online gambling market and channeling billions into the local economy.
The year 2024 marked a pivotal moment with the release of official ordinances outlining detailed Brazil gambling regulation, accompanied by a final call for operators to obtain a license or face serious consequences.
Before diving into these new iGaming Brazil rules, let’s take a look at the history of gambling in Brazil and explore how operators can capitalize on the growing online gambling in Brazil market while maintaining compliance.
Source: https://denmark.net/top-countries-online-gambling-traffic/?expand_article=1
The History of Gambling Regulation in Brazil
Gambling has held a significant place in Brazilian culture for many years. Up until the early 1940s, games of chance such as rolling dice were widely popular until the then-President imposed a blanket ban, allegedly due to his and his wife’s strong religious beliefs.
This rule stayed in effect until the 1970s when state-run lotteries were approved. Betting on horse racing was also approved in the middle of the 1980s; later, the 1993 Zico Act enabled commercial bingo and slot machines. However, the 1998 Pele Act reversed this by banning commercial bingo, leaving only non-commercial games legal in the Brazil regulation gambling market.
Among all these developments, poker has stayed legal since it is considered as a game of skill rather than chance and under government funded lotteries. Despite this, poker has remained largely unregulated, though upcoming Brazil iGaming regulations may soon address this issue.
Since 2018, when Congress gave the federal government power to control online sports betting, the debates over the control of gambling in Brazil and Brazil online gaming have been continuous. The government has four years to apply to a licensing system, which ends in 2022. It was subsequently agreed that rather than an emergency decree by the Ministry of Finance, Brazil’s gambling rules should pass Parliament as a legislative measure.
With the Associação Brasileira de Defesa da Integridade (ABRADIE) established in March 2023, attempts toward a safe and orderly Brazil online gambling business acquired momentum. Comprising professionals in sports and gambling law, this non-profit group seeks to establish a safe space for online gaming in Brazil, therefore ensuring that new laws governing gambling license protection guard against fraud and illegal activity.
By July 2024, Brazil iGaming’s regulatory system was complete, with thorough rules on responsible gaming and anti-money laundering (AML). These guidelines establish thorough KYC criteria for operators to follow, therefore guaranteeing financial crime avoidance and player protection.
The revised rules set high standards for local and foreign companies, including financial limits and extensive background checks to guarantee openness. Brazil’s gaming licenses come with a mandated fee structure that guarantees only financially sound, well-regulated businesses may operate. By the October 1, 2025, deadline, 132 operators had applied for licenses, with many already approved by the Ministry of Finance’s Secretariat of Awards and Betting. From January 1, 2025, operators will be required to use the .bet.br domain, and other domains, such as .com, will be blocked.
With about 2,000 illegal gaming sites still operating in Brazil by late 2024, the Brazilian government faces the difficulty of stopping them; nevertheless, the new legislative actions will enforce fines. Those operators that disobey might have fines of up to R$2 billion (about US$354 million) and have websites blocked.
These rules guarantee improved security for players and a more open sector, thereby marking a major step toward the formalization and expansion of the Brazil online gaming and iGaming sectors.
The Near Future of iGaming in Brazil
Brazil gambling regulations will enhance security, governance, and, importantly, allow for the creation of new domestically based companies. A key driver behind the push for licensing is financial. Brazil’s fast expansion in online gaming has coincided with a downturn in the nation’s economy, which has dropped from ranking seventh among all countries to thirteen within the past ten years. The government of Brazil is hoping to leverage the enormous tax income potential that the sector presents by enforcing online gambling licenses and permits throughout the country.
Statista projects that online gambling in Brazil will rise by about 20% by 2027. These encouraging numbers underline how urgently strong Brazil iGaming rules and licensing policies are needed to guarantee the stability and expansion of the business.
The 8 Most Crucial Rules of Brazil’s New Gambling System
- Foreign operators are now prohibited from offering services in Brazil online gambling; all operators must be based in Brazil.
- Operators are subject to a 12% revenue tax, in addition to federal and state taxes.
- All licensed Brazil gambling operators must use the bet.br domain to differentiate themselves from unauthorized platforms.
- Operators must comply with integrity, responsibility, and honesty requirements proposed by ABRADIE and IBJR.
- Players are subject to a 15% tax on winnings, a significant reduction from the initially proposed 30%.
- A Brazil gambling license costs R$ 30 million (approximately US$ 6.1 million) and lasts for five years.
- Companies operating without a license will face website blocks and fines of up to R$ 2 billion (approximately US$ 354 million).
- Operators must conduct rigorous age and identity verification to ensure players are over 18 and not listed on any government restriction lists, PEPs, or sanctions.
Licensing, Compliance, and Regulatory Authorities
Operators looking for a Brazil gambling license have to apply under the Ministry of Finance to the Secretariat of Awards and Betting. Legalizing gambling in Brazil has one of its toughest obstacles in making sure appropriate compliance and protection policies are followed. Operators will be obliged to satisfy consumer protection criteria, preserve user personal data, maintain AML (Anti-Money Laundering) policies, and advance responsible gaming. Comprising members of the Ministries of Finance, Health, Sports, and the Secretariat of Social Communication, a working group has been formed to address the dangers of gambling-related harm and addiction.
“The focus is on developing strategies to prevent and mitigate harm, as well as offering support to individuals and communities impacted by compulsive gambling or those in vulnerable situations, particularly in the context of fixed-odds betting,” said the group in a news release.
Establishing Brazil gambling rules will depend mostly on guaranteeing strict anti-money laundering policies and strong fraud protection. Important for this is the application of strong identity verification and fraud avoidance mechanisms to guarantee regulatory compliance in the Brazilian online gambling scene.
Problems and Conflicts
Reforming a country’s gambling laws and introducing new Brazil gambling regulations for an already multi-billion dollar industry is undeniably filled with challenges and controversies.
A primary concern is the social impact of establishing a regulated Brazil gambling licensing system. Brazilian officials have to give players’ safety, especially those of individuals who might be first-time gamblers top primary concern. Legalizing gambling in Brazil has increased the possibility of fraud, match-fixing, and other illegal activity capable of major damage, even while it has opened the industry to more operators and consumers. Brazil online gambling operators must concentrate on developing and implementing rigorous safety procedures and responsible gaming policies if they are to reduce these hazards.
Innovations and Future Legal Framework
The establishment of a Brazil gambling licensing framework has legalized gambling for the first time since the 1940s, unlocking significant opportunities for both new and established Brazil-based gambling companies. Establishing a safe and secure controlled environment for the Brazil online gaming business has been a difficult chore, predicted to keep changing for many years.
Strong identity verification and fraud prevention policies will be very crucial to guarantee the success of controlled sports betting and online gambling in Brazil in 2025 and beyond. By means of IDnow’s Brazil-ready identity verification solutions, operators may rely on a highly flexible platform that conforms with different rules, sectors, and use cases, so meeting several criteria. Our advanced identity proofing features, including document authentication, selfie liveness checks, Cadastro de Pessoa Física (CPF) validation, and Anti-Money Laundering (AML) procedures, ensure that Brazil gambling operators can provide a safer and more secure gaming experience.
Conclusion
Brazil’s iGaming sector is clearly growing quickly and offers great chances for investors trying to set themselves in 2025. Set to take effect in January, the new Brazil gambling rules not only provide a safer and more consistent business climate but also allow new investors and operators in Brazil access.
Furthermore, Brazil’s young, tech-savvy customer base is fast embracing online technologies, which offers a ready environment for the explosive expansion of online gambling in Brazil. This, together with the growing need for internet entertainment choices, makes Brazil one of the most exciting iGaming locations worldwide.
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