Join us as we review the SOFTSWISS report on regulated iGaming in Brazil for 2025 and highlight the benefits of this market's licensing for casino players and sports betting enthusiasts.
For many years, Brazil has been referred to by the online casino and sports betting markets as the “sleeping giant”. This was due to its incredible potential to become a juggernaut in the online gambling market, but one that faced tremendous challenges in terms of legislation and moving funds in and out of the country.
However, with a population of more than 200 million residents (97% of whom are mobile phone users), the 8th largest global economy at an astounding $2.3 trillion in Gross Domestic Product (GDP), internet penetration of 86.6%, and a well-recorded love of gambling, it was only a matter of time before the government realised the upside of regulation and licensing.
Let’s dive into the SOFTSWISS report on licensing in Brazil in 2025!
The finalisation of Brazil’s licensed gambling sector on 1 January 2025 is the culmination of a process that has been in play since 2018 with the introduction of Law 13,756. In 2023, the scope of this bill was broadened with the introduction of Law 14,790, which added online games to the existing fixed-odds betting legislation.
In 2024, the government established the Secretariat of Prizes and Bets under the Ministry of Finance (SPA/MF) to manage licensing and compliance with the Gambling Act. It also outlined the licensing framework and assisted operators to get their house in order ahead of the 2025 legislative shift.
Legal gambling in Brazil now includes:
Offline slot machines, table games, and other games of chance are still illegal. As are online games like fantasy sports, multi-bettor games, peer-to-peer (P2P) games, and skill games.
Brazil has made its stance on the operation of unlicensed casinos and those who transgress the Gambling Act clear by levying harsh fines and punishments. Fines can range up to $345 million, loss of license, being banned from obtaining a permit, and other penalties.
To ensure that all licensees abide by the letter and the law of the newly formed gambling jurisdiction, there are several requirements for licensees. To be approved for an online casino or sports betting license in Brazil, operators must register with the Betting Management System (SIGAP), which is operated by SPA/MF.
They must then provide a litany of legal and financial documentation showing their legal standing, tax and labour compliance, financial holdings, technical qualifications, and generally prove they are “of good reputation” (aka not criminals).
The company structure must comprise a legal entity registered in Brazil, as a Limited Liability Company (LLC) or Corporation (S.A.). The entity’s headquarters and administration division must be based in Brazil.
If a Brazilian businessperson does not own the operation, it must partner with local subsidiaries that own at least 20% of the total business to ensure that value is added to the local economy and that players are protected.
This requirement aims to limit unlicensed operations, but also encourages license holders to consider the well-being of the local gambling population truly.
Licensing is expected to be incredibly lucrative for Brazil, with approved operators paying $5.18 million (BRL 30 million) for a 5-year non-transferable license, limited to three brands.
They will also pay an additional 12% tax on their Gross Gaming Revenue (GGR). The SOFTSWISS publication outlined the distribution of this revenue stream as being: education, health, and sports development.
On the downside, locals will have to pay a 15% gambling tax on winnings which exceed $364 (BRL 2,112).
While finally paying taxes on winning is never going to go down well with players, licensing does open up a wide range of benefits.
Brazilian bettors and casino players can now expect bonuses and promotions that align with local prices and values, rather than US dollar or Euro offers converted into Brazilian Reals. This could result in much better value for money and more budget-friendly gaming for all local gamblers.
Operators will also be able to legally offer trusted local banking methods, such as Pix (Brazil's most popular payment method), Boleto (a voucher-based system used by more than 9% of the market), and cryptocurrencies. Brazil is famously pro-crypto, with its Central Bank overseeing compliance.
It will also mean more betting on local sporting events and tournaments, as well as more focused competition as operators try to landgrab market share, which can result in incredible bonuses and promotions for early adopters.
Finally, one of the most important aspects of licensing and regulation is the implementation of safer gambling requirements to ensure at-risk gamblers are protected. Locals can now enjoy the security of exclusion programs, risk-reducing deposit limits, and gamble with peace of mind, knowing that should a query arise, they have the support of the Secretariat of Prizes and Bets in seeking a resolution to any dispute.
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