Brazil’s Ministry of Finance is in charge of licensing online sports betting sites looking to operate in Brazil since 2023, with gaming licenses not covering any other types of online gambling at this time.
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For many years, online gambling was not regulated on a federal level in Brazil, with different Brazilian states being the only ones issuing licenses for different types of gambling activities and no federal laws or licenses available for online gambling activities.Â
Starting July 2023, Brazilian government has established a licensing process for online sports betting sites looking to operate in Brazil, with Brazil’s Ministry of Finance being put in charge of all licensing and audits related to these licenses.
The new laws allow operators to apply for a gaming license only if they hold an office in the country and are willing to run their business from within Brazil. This will be the first type of gambling license to be issued on the federal level, and all licenses issued by Brazil's Ministry of Finance will be valid for the entire country of Brazil, with all its 190 million citizens.Â
Those who do apply will be audited by Brazil’s Ministry of Finance in order to ensure they have enough capital to cover player deposits and business expenses, and that they are willing to run their business in full accordance with the law.
Companies looking for the license may have to pay a one-time fee of more than $6,000,000 in order to gain access to the massive gaming market that Brazil provides, and will in turn have the right to offer their services in each of the country's states.Â
Past that, operators will pay an 18% tax on their gross revenue, which is a reduction on the previously suggested 20%, a concession made to the potential future licensees.Â
It is important to note that all licenses issued by Brazil’s Ministry of Finance will only cover online sports betting, and that no online casino, poker, or lottery licenses will be issued to private businesses at this time.
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