Brazil stands as the world’s third-largest sports betting market, capturing 20% of global online gambling traffic. Monthly wagers reported by the Central Bank of Brazil reach 20 billion reais ($3.5 billion), highlighting the market’s substantial presence.
The Ministry of Finance will oversee mandatory licensing requirements starting January 1, 2025. Gaming operators must obtain official authorization to continue their Brazil operations. Companies failing to secure licenses by December 2024 face steep penalties – fines could reach 2 billion reais ($354 million).
Brazil Gaming Legislation Takes Shape
Law No. 14,790/2023 sets the foundation for Brazil’s gaming market, with new rules starting January 1, 2025. Operators must maintain financial reserves of RUSD 5.00 million and show paid-in capital of RUSD 30.00 million.
Gaming Framework Details
The tax structure places a 12% levy on gross gaming revenue. Operators pay RUSD 30.00 million for a five-year license covering three commercial brands. SIGAP, the Secretariat of Prizes and Betting (SPA) platform, reviews license applications within 150 days.
Licensed sportsbooks must meet these requirements:
- Use _.bet.br domain names
- Follow anti-money laundering rules
- Set up player protection systems
- Offer Portuguese customer support
Regulatory Bodies and Oversight
The Ministry of Finance heads market oversight, with SPA handling licenses and sports betting integrity. The Ministry of Sports works alongside SPA on betting integrity, while the Federal Revenue Service manages tax matters.
Procon safeguards player interests against unfair practices. The National Telecommunications Agency (Anatel) supports SPA with enforcement. These agencies work together to maintain market transparency, responsible gaming standards, and anti-money laundering compliance.
Sportsbooks Race for Brazil Market Entry
The Ministry of Finance reports 150 license applications from 145 gaming operators. Currently, 68 operators hold full authorization after paying the €5 million concession fee.
License Applications Surge
The first 90-day application window drew 113 operator submissions. Betano, from Kaizen Gaming, submitted the first application on May 26, 2024. Major brands bet365, Betsson, and SportyBet followed with their applications.
December 2024 Licensing Requirements
Sportsbooks must complete licensing by December 31, 2024. Key requirements include:
- 20% Brazilian ownership for local operations
- BRL 5 million financial reserve
- Testing lab platform certification
- Financial Activities Control System registration
First License Approvals Roll Out
SPA granted 15 permanent licenses through 2029, plus 66 provisional approvals needing updates within 30 days. SuperBet, MGM, and SportyBet secured permanent licenses. Provisional license holders must fix documentation gaps during their 30-day window.
The Ministry allows failed applicants to try again in future rounds. Payment processors will block transactions from unlicensed operators starting January 1, 2025.
Technical Standards Shape Brazil Gaming Market
Payment processors face USD 330 million fines for failing to meet new technical requirements. The market demands strict controls across payment systems, data centers, and technology platforms.
Payment Processing Rules
PIX payment integration leads Brazil’s gaming transactions. Payment providers must separate transaction accounts from financial accounts, routing all activity through Central Bank-approved channels. PIX keys enable streamlined customer verification while meeting data protection rules.
Tech Companies Build Brazil Operations
Gaming technology firms stake their claim in Brazil’s market. WA.Technology earned Gaming Laboratories International certification, launching Portuguese support teams. Games Global opened São Paulo offices to blend local culture into gaming products.
Data Security Standards
Data centers need ISO 27001 certification. Security rules require:
- Protected server locations with physical and logical safeguards
- Encrypted storage and access controls
- Credential management protocols
- Third-party service monitoring
Backup systems must store five years of data. While Brazil prefers local data centers, facilities in countries with legal cooperation agreements qualify if they maintain Brazil-based data copies with regular updates.
Brazil Gaming Compliance Rules Take Shape
Licensed operators must report RUSD 10,000+ transactions to the Financial Activities Control Council (COAF).
Money Laundering Prevention
The AML Ordinance starts January 2025, requiring risk assessment systems. Operators track player risk profiles with ongoing updates. Sportsbooks must flag and block:
- Quick fund transfers with unclear sources
- Suspicious login attempts
- High-risk players, including political figures
- Money from FATF-listed regions
Player Safety Measures
Brazil’s gaming rules mandate player protection systems. Sportsbooks use biometric checks and face scanning for new accounts. Gaming sites maintain banned player lists, including those with gambling disorders.
Rules require Portuguese-language support available 24/7. Players get self-exclusion options and betting limits. The rules ban credit cards, crypto, and payment slips for bets.
A multi-ministry team develops problem gambling prevention plans. Age verification ensures players are 18+. Rule breakers risk losing their licenses.
Brazil Gaming Market Outlook
Brazil steps into 2025 with strict gaming rules and clear market structure. The licensing system, technical requirements, and player protection measures create the foundation for legal sports betting.
Operators face key deadlines through 2024. The Ministry of Finance expects full compliance with:
- Licensing requirements
- Payment system updates
- Local presence rules
- Player protection standards
Brazil’s gaming framework shows promise for established operators and new market entrants. The Ministry of Finance and SPA oversight brings stability to the market. December 2024 marks the start of Brazil’s regulated sports betting era, backed by clear rules and strong consumer protection.
