An overview of Brazilian gaming licensing and regulations in 2025

Once considered the “sleeping giant” of the global iGaming industry, Brazil’s population of over 200 million and national adoration of football made it one of the world’s biggest markets when gambling in Brazil was legalized. Learn more about the newly regulated market.

Brazil has gone from a land of potential to one of realization, almost instantly becoming one of iGaming’s most important and dynamic markets when authorities decided regulation was better than a booming black market.

In this article, we will explain in detail how new gambling laws work, what costs operators can expect, what tax requirements are in place, and how to navigate the entire legalization process in Latin America’s largest market.

The new era of iGaming regulation in Brazil

Brazilians’ well-documented love of betting was confined to the shadows for nearly eight decades after a strict ban was enacted in 1946. Attempts to create a modern legal framework were only made in recent years, and everything changed after the 2018 law on fixed-odds betting was passed.

Brazil’s new iGaming regulation kicked off a long period of political debate, during which the market existed in a kind of gray area: foreign companies took millions in bets, the state lost out on potential tax revenue, and players didn't have stable legal protection. The situation changed dramatically after the approval of Law No. 14.790/2023 that introduced clear rules and established the powers of a new regulator — the Secretariat for Prizes and Betting under the Ministry of Finance. This body was given the right to issue licenses, control the activities of operators, and impose serious fines, making it clear that the era of offshore schemes was over.

On January 1, 2025, new gambling regulations came into force in Brazil, designed to leave only reliable companies on the market. A transition period was established, during which operators had to submit applications by the end of 2024. Those who did not meet the deadline immediately faced restrictions, blocks, and advertising bans.

The first list of licensees included only 14 companies, but by August 2025, there were already 78. Such rapid growth indicates that in the eyes of many brands, the potential earnings far outweigh the costs of entering the market.

A promising frontier for iGaming & blockchain innovation

Online casino and sportsbook operators looking for a huge, well-connected potential audience can find it in Brazil.

The country has a population of over 216 million, and in recent years, more than 80% of the population has gained access to the internet. Most online traffic comes from smartphones, so local users are accustomed to a fast and convenient mobile interface.

For iGaming operators, these are ideal conditions: the market is growing rapidly, and according to H2 Gambling Capital forecasts, its gross revenue could approach $10 billion by 2029. This dynamic puts the country on par with the leading markets of Western Europe, but Brazil has higher growth potential thanks to its young population and strong interest in sporting events.

One of the main technological achievements has been the PIX instant payment system, developed by the Central Bank of Brazil. PIX enables users to make instant transfers using a “key” like an email, phone number, or QR code.

PIX has set the standard for speed and convenience when topping up balances, and while direct cryptocurrency deposits are limited in order to reduce volatility risks and prevent AML violations, blockchain remains a popular tool for internal processes.

The country is also preparing to launch Drex, a digital version of the Brazilian real in CBDC format. The emergence of Drex could pave the way for automatic payments and fully transparent settlements between operators and players.

As a result, a unique ecosystem is forming in the Brazilian gambling market, in which fast fiat payments, blockchain technology, and artificial intelligence capabilities work together to create one of the most advanced models in the global iGaming industry.

Key advantages of the Brazilian gaming license

The Brazilian license might seem like a pricey investment, but it opens up opportunities for operators that aren't available to black-market platforms.

A license is the foundation for a long-term and secure business. It gives you access to a huge audience of players in the region and lets you work without the risk of being blocked or restricted. Legal status gives the right to use the largest advertising platforms — Google, Meta, and YouTube, which will be closed to unlicensed operators from 2025.

The Brazilian license grants exclusive rights to sponsor football clubs, leagues, and championships by placing the brand logo on players’ jerseys. Another important advantage is the ability to officially connect to PIX, which makes it possible to operate in the Brazilian market.

Finally, compliance with all legal requirements protects the operator’s assets, including domains and financial accounts, and ensures that the company’s activities won’t be subject to regulators’ sanctions.

Licensing in Brazil

There are currently three types of the Brazil online gambling licenses. Brazil gambling operators must also undergo rigorous certification procedures to apply for and maintain a federal license. Here are some of them:

• Technical certifications for betting systems and servers, such as ISO-27001
• Payment systems compliant with Sicoaf/Bacen standards in accordance with Portaria SPA/MF 1,143/2024
• Certificates issued by third-party certification organizations, such as Gaming Laboratories International (GLI) and Gaming Associates Labs (GA Lab)

Type 1 – Federal license

This is the main license issued by the SPA. The five-year license allows operators to use up to three brands. International betting brands such as Bet365, Betfair, and Betano obtained this license in advance in order to enter the market. All license applications must be submitted through the SIGAP portal at the SPA.

Type 2 – Temporary license

The SPA also issues temporary licenses to companies that have paid the license fee of BRL 30 million but are facing delays in obtaining technical certificates or other problems with their application. These licenses are usually valid for 30 days. If companies need additional time to complete their application, the license may be further extended.

Type 3 — State or municipal license

Some state lotteries, such as the Rio de Janeiro State Lottery (Loterj), and some municipalities, such as Bodo, also issue their own licenses. These state and municipal licenses are generally cheaper than the federal license issued by the SPA. Thus, the final cost of the license depends on the scale of the business.

Regulatory compliance

To obtain a federal gambling license in Brazil, you must meet strict legal, tax, financial, and technical requirements. To conduct business in the online gambling sector in Brazil, you must demonstrate financial stability, technical competence, and compliance with Brazilian law.

After obtaining a license, you are also required to comply with the following requirements:

• Anti-money laundering (AML)
• Strict adherence to the “Know Your Customer” principle (KYC)
• Countering the financing of terrorism (CTF)
• Use of .bet.br domains
• Restrictions on electronic transfers
• Prohibition on the use of credit cards and cryptocurrencies

The platform and all gaming content must be certified by independent laboratories (such as GLI or BMM Testlabs) for compliance with technical standards of fairness.

In 2025, gambling regulations in Brazil have several requirements that new operators must satisfy, including not only financial stability, but also a physical presence in the country. Licensees are required to open an office, appoint a local financial director, and connect their systems to government databases so that regulators can track transactions in real time.

Oversight & enforcement

Brazil has established a robust control system to prevent a return to the chaos of an unregulated market. Oversight is carried out by several agencies:

1. Secretariat for Prizes and Betting (SPA), the key regulator
2. Ministry of Sport (MESP), which oversees the integrity of sport and combats match-fixing
3. Council for the Control of Financial Activities (COAF), which monitors cash flows and prevents money laundering (AML)

The penalties for violations are extremely severe:

• Fines of up to BRL 2 billion (approximately $342 million) for systematic violations
• License revocation and a ban on obtaining a new one for up to 10 years
• Disqualification of directors and key company personnel
• Blocking of IP addresses and payment gateways

How to apply for a Brazilian gaming licence

Obtaining a license can be a laborious process, requiring applicants to satisfy strict requirements. Below is a detailed description of the main stages of obtaining a gambling license in Brazil.

1. Business registration

The first step is to legally register your company in Brazil in accordance with the criteria discussed above before beginning the licensing process.

2. Gathering documents

SPA will carefully assess your legal qualifications, as well as your financial and technical structure, to ensure compliance with its rules.

A complete list of required documents can be found in Portaria SPA/MF nº 827/2024.

3. Submission of application

Once you have gathered all the necessary documents and fulfilled the prerequisites, you can submit your application online. SPA only accepts electronic applications via the Bid Management System (SIGAP).

4. Review and verification

After submitting an electronic application, the SPA has up to 150 days to review it. If the information provided is insufficient or incomplete, the SPA may request additional documents at any time during the assessment process.

After preliminary review by the SPA, the Ministry of Sport (MESP) has up to 45 days to approve the application.

5. Getting a license

The approval of the license marks the final stage of the application process. Once the SPA has given the green light to the initial documentation, they will notify you of the need to pay a license fee of BRL 30 million. You will then have up to 30 days to submit the payment receipt and any remaining documents.

The SPA issues temporary licenses to applicants who have met most of the requirements but are missing certain documents, such as technical certificates. A temporary license is usually valid for 30 days. You can extend your permit for another 90 days. However, if you do not meet the deadline, the SPA may suspend or revoke your temporary permit.

Requirements for obtaining Brazilian gaming license

To pass the SPA filter, a company must prove its reliability and financial solvency. The main requirements include:

• 20% rule: Foreign investors can own a company, but at least 20% of the share capital must belong to a Brazilian citizen or a Brazilian company. This is done to ensure that part of the profits remain in the country and are accountable to local courts.
• Financial reserve: The operator is required to freeze BRL 5 million (approximately $950,000) as a guarantee fund. These funds serve as insurance for payments to players in the event of the company's bankruptcy.
• Technical standards: The platform must be ISO/IEC 27001 certified (information security). Servers must be located in Brazil or in jurisdictions that have legal assistance agreements with Brazil, with mandatory data mirroring to the regulator.
• Personnel: The company must appoint responsible persons, including a compliance director, an AML officer, and a customer service manager. Customer support must be available 24/7 in Portuguese.

Post-license period

The Brazilian regulator does not simply issue a license and let you do as you please; it requires a constant, virtually round-the-clock flow of data.

Your platform must be integrated with the state monitoring system, where information about every bet, every new registered user, and every transaction is sent in near-real time. This is not a formality — delays in data transmission or discrepancies in figures (for example, between your backend and tax reports) immediately raise questions from the Ministry of Finance.

Moreover, the technical infrastructure must support constant data mirroring so that the regulator can remotely verify the integrity of your software and the correct operation of the RNG at any time. If the monitoring system detects a failure or suspicious activity, your operations may be suspended until the circumstances are clarified, which in a competitive market can cost you your reputation.

In addition to paying a monthly 12% tax on GGR (which must be calculated with precision, taking into account all winnings), operators are required to pay a monthly inspection fee (Taxa de Fiscalização), the amount of which varies depending on the amount of prizes paid out and can reach almost BRL 2 million per month for large players.

You are also required to integrate with the Consumidor.gov.br platform. Brazil has a very strong consumer protection culture: players know their rights and actively complain. These complaints cannot be ignored — doing so will lead directly to fines or license revocation. Your support department must not only respond in Portuguese 24/7, but also be able to resolve conflicts within the legal framework, complying with the strict response times established by law.

Once a year, your company is required to undergo a full recertification process: independent auditors will check not only your accounting, but also your IT security (confirmation of ISO 27001 certification) and the effectiveness of your responsible gaming policies.

Documents required for a gaming license in Brazil

The complete list of documents is regulated by Portaria SPA/MF nº 827/2024 and includes dozens of items that can be divided into groups:

1. Corporate: Articles of association, register of shareholders, shareholders’ agreement (confirming the local partner's 20% share).
2. Financial: Proof of reserve fund (BRL 5 million), business plan and economic forecast for the next two years, confirmation of source of funds.
3. Tax: Certificates confirming that there are no outstanding debts to the federal budget, social funds (FGTS), and the labor inspectorate (CNDT).
4. Personal: Certificates of no criminal record for all beneficiaries and directors, their resumes, and proof of qualifications.
5. Technical: Certificates of conformity for the platform and games, description of the software architecture, disaster recovery plan.

Taxation and financial obligations for licensed operators in Brazil

Brazil is known for its complex taxation system, which critics say results in a disproportionately high tax burden on operators.

Summary

Despite the enormous potential of the Brazilian market, operators need to consider several key factors.

The decision to apply for a license means having to operate in a highly competitive environment and a complex, sometimes unpredictable tax system. The profitability of the project is also not guaranteed. Companies are required to pay a non-refundable license fee of up to R$30 million, set up mandatory financial reserves, and face a cumulative tax burden of up to nearly 50%. According to industry experts, these requirements may push some market participants to operate through unregulated channels.

If you’re interested in launching an online casino or sportsbook project in the Brazilian market, our jurisdictional advisory services are there to help you. Get in touch for a free consultation about next steps.