Navigating Gambling Regulations in Brazil: A Guide for 2024

Navigating Gambling Regulations in Brazil: A Guide for 2024

Share this article

New regulations introduced at the end of 2023 marked a momentous shift in Brazil’s approach to gambling, emerging from the shadow of an outright ban in 1946 to the establishment of a fully regulated market.


Online sports betting and casino games are now legal in one of the world’s largest economies. With 217 million inhabitants profoundly interested in sports, this is a big deal for iGaming operators and service providers.


This article explores Brazil's gambling landscape to uncover the opportunities, identify the challenges, and provide valuable insights for investors eyeing this market in 2024.


The Gambling Landscape in Brazil - Past and Present


Unlike many other jurisdictions worldwide, the legal situation for gambling in Brazil over the last decade has been unambiguous. Before 1941, gambling was considered an exciting form of entertainment, and the country enjoyed a lively casino culture. 


The landscape shifted dramatically, however, with the introduction of The Criminal Contravention Act of 1941, prohibiting all games of chance. President Eurico Gaspar Dutra consolidated this policy in 1946, decreeing an outright ban on all forms of gambling. This move, attributed to prevailing moral and social concerns, resulted in the removal of casino permits, leading to the closure of the country’s gambling venues.


This situation remained for decades. Poker was the only legal game because it was, and still is, considered a game of skill rather than chance. Despite the ban, there remained an underlying appetite for gambling among the general populous. A move towards greater liberalisation began in 1971 with the legalisation of a state-owned lottery (Loteria Federal), followed by support for non-commercial bingo and horse racing in subsequent years.


The advent of online gambling in the mid-eighties continued the ongoing pressure on the government to legalise gambling. It was argued that the restrictions only applied to gambling operators within the country and did not stop licensed offshore operators from enjoying rising profits in a nation with a strong interest in sports.


Gambling in Brazil has been unregulated for the past eight decades. This situation changed in 2023 when the Chamber of Deputies approved a bill to regulate sports betting. Shortly after, on December 30 of that same year, Bill number 14.790, outlining the legal framework for gambling in Brazil, was passed into law.


While some land-based activities remain prohibited, licences are now available to sports betting platforms and online casinos, opening the door to fixed-odds betting opportunities in the country. The law aims to boost economic growth through job creation, attract tourism, and encourage foreign investment.


The iGaming industry has evolved rapidly in recent years, and this is an exciting time for foreign and domestic gambling operators seeking to enter this new market. Understanding the prevailing changes to laws and regulations is essential for successful entry.  

Our team of experts have detailed knowledge of the legal landscape in Brazil to ensure operators have the correct licences, certifications, procedures and strategies in place to meet all legal requirements.


Gambling Regulatory Bodies and Responsibilities


Caixa Econômica Federal regulated Brazil’s gambling market for many years during prohibition. In 2018, this responsibility was transferred to SEFEL (the Secretariat of Tax, Energy, and Lottery), which subsequently became SECAP (Secretariat of Evaluation, Planning, Energy, and Lottery). 


With the new laws in place, Brazil's Ministry of Finance (Ministério da Fazenda) is set to play a leading role in clarifying certain aspects of the new law and navigating future regulatory changes. The Ministry of Finance oversees the country’s financial and economic policy, including those relating to the gambling industry.  


Its primary responsibilities (as it relates to gambling) include the following:


  • Policy Development: Advising and implementing policies and strategies.

  • Regulatory Oversight: Ensuring operations are fair and transparent.

  • Taxation: Setting tax rates and tax collection on gambling activities.

  • Licensing: Reviewing applications and issuing licences.

  • Consumer Protection: Safeguarding consumers from unfair practices.

  • AML Compliance: Prevention of money laundering and terrorist financing.

  • Economic Impact: Assessing financial risks and benefits to the country.


Compliance Requirements and Responsibilities for iGaming Operators


Obtaining a Brazilian iGaming licence can be challenging, and operators should expect to go through a process designed to ensure compliance with current legal and regulatory standards. 


Background checks of owners and key personnel, together with business plans, financial projections, and operational details, are necessary for application submission. Applicants must also provide a range of financial statements and documents demonstrating proof of compliance with anti-money laundering (AML) and know-your-customer (KYC) protocols.


On receipt of a gambling licence application, the regulating authority evaluates the applicant's suitability under well-defined technical standards for fairness and security. If the application succeeds, the operator must pay a licensing fee of R$30m (£4.89m/€5.69m/$6.10m), valid for five years and allowing the operator to promote up to three brands. In addition, licensed operators are liable for an 18% gambling tax on revenues and monthly inspection fees that fluctuate depending on net income.


Under the new regulations, operators that want to offer fixed-odds betting must have a subsidiary in Brazil with a local shareholder owning a minimum of 20% of the holding (under current law). 


Maintaining a gambling licence in Brazil also requires adherence to a number of compliance and responsible gambling practices. 


Operators must:


  • Advertise in a socially responsible way by protecting vulnerable groups from the dangers of excessive and irresponsible gambling.


  • Verify the bettor’s identity and check they are over 18.


  • Offer customers self-exclusion windows ranging from one day to six weeks and allow bettors to limit playing time and losses.


  • Implement Know Your Customer (KYC), Anti-Money Laundering (AML), and anti-terrorist checks on customers.


  • Create a local customer service centre that provides 24/7 service in Portuguese via free electronic and telephone channels.


Regulatory Challenges, Pitfalls and Strategies for Success


Obtaining a gambling licence is fraught with intricacies, and navigating the bureaucratic landscape demands foresight and detailed planning. 

A common pitfall is underestimating the complexity of regulatory frameworks, which can lead to delays or even rejection of licence applications. Brazilian gambling laws are new and evolving, and what is law today may change tomorrow. Failure to stay updated can lead to non-compliance, risking penalties or licence revocation. 


Financial compliance is equally critical. Like all other regulated markets worldwide, the Brazilian gambling market demands stringent financial transparency and proof of solvency. Any discrepancies can be a significant roadblock to securing a licence.


At Altenar, we understand these challenges intimately. Our iGaming software is designed with the flexibility to adapt to regulatory changes, providing a stable foundation for your compliance needs and success in Brazil.


Adopting a proactive, informed, and responsible approach allows your business to navigate the regulatory requirements and enjoy sustainable growth in this new and exciting market.



5 Top Tips for Success in 2024


  1. Dedicate resources to compliance

A comprehensive understanding of the Brazilian regulatory framework is essential. We advise establishing a robust compliance team or partnering with local legal experts to ensure operations align with Brazilian legal standards and requirements.


  1. Engage proactively with regulatory bodies

Be proactive rather than reactive. Engaging with local and national authorities can provide insights into upcoming regulatory changes and opportunities, allowing your business to adapt swiftly.


  1. Keep documentation safe and secure

Get organised and establish a system for meticulous record-keeping, particularly for player data and financial transactions. All records should be kept safe and secure, demonstrating transparency and strengthening trust with stakeholders.


  1. Invest in responsible gaming initiatives

Brazil, like other top gambling markets, takes social responsibility seriously. Integrating features on your platform that promote safe gambling practices from the start shows your company’s commitment to this practice and genuine concern for player welfare. Doing so will enhance your brand's integrity and value.


  1. Cultivate strong local partnerships

Forging local alliances with businesses and community leaders can provide invaluable insights into Brazilian culture and consumer behaviour. It will help your company tailor services to resonate with Brazilian players. Furthermore, community involvement and investment will demonstrate a commitment to the local economy and bolster your company's reputation.


Opportunities and Future Outlook


The enactment of Law 14.790 has introduced many compliance challenges. Still, 2024 will be a transformative era for iGaming in the region, especially for early investors who can overcome prevailing volatility and uncertainty issues relating to the legal framework. 


The market's potential is undeniable. Brazil's large population, combined with expected revenue of US$1.97 billion in 2024 and a projected annual growth rate of 15.39% until 2029 underlines its size and scope. 


For forward-thinking operators and suppliers, now is the right time to engage with the legal landscape and take early mover advantage.



Previous Next

Related articles

  • From Stocks to Slots - Why iGaming Investment is the Smart Bet for Future Growth

    From Stocks to Slots - Why iGaming Investment is the Smart Bet for Future Growth

  • iGaming Ad Tactics: Campaign Tips to Bypass Restrictions on Google, Bing & Social Media

    iGaming Ad Tactics: Campaign Tips to Bypass Restrictions on Google, Bing & Social Media

  • GLI and ISO Accreditations: The Key to iGaming Compliance in 2025

    GLI and ISO Accreditations: The Key to iGaming Compliance in 2025

  • gambling-laws-and-regulations-in-europe-in-2024

    Gambling Laws and Regulations in Europe in 2024

  • States where Online Gambling is Legal in the USA

    States where Online Gambling is Legal in the USA

  • Launch Your Own White-Label Gambling Site - Step-by-Step Instructions for 2024

    Launch Your Own White-Label Gambling Site - Step-by-Step Instructions for 2024

  • What Should Sportsbook Operators Do in 2024 Following Brazil’s Bold Move?

    What Should Sportsbook Operators Do in 2024 Following Brazil’s Bold Move?

  • Records galore as sun shines on Altenar Isle of Man Marathon

    Records galore as sun shines on Altenar Isle of Man Marathon

  • Understanding Gambling Laws and Regulations in Greece - Key Insights for 2024

    Understanding Gambling Laws and Regulations in Greece - Key Insights for 2024

  • iGaming Taxes in the USA - Which State Should You Choose for Launch in 2024?

    iGaming Taxes in the USA - Which State Should You Choose for Launch in 2024?

  • gambling-laws-in-estonia-2024-guide-to-regulation-and-legality

    Gambling Laws in Estonia: 2024 Guide to Regulation and Legality

  • innovate-and-grow-12-fun-betting-markets-to-attract-and-retain-new-players

    Innovate and Grow - 12 Fun Betting Markets to Attract and Retain New Players

Fill out the form and we’ll be in touch as soon as possible

Follow 3 simple steps to fill out the form

  • 1

    Details

    Step 1
  • 2

    Contacts

    Step 2
  • 3

    Info

    Step 3

Choose enquiry and fill details

1 / 3
Enquiry Type

This form collects your data so that we can correspond with you. Read our Privacy Policy for more information

  • 1

    Details

    Step 1
  • 2

    Contacts

    Step 2
  • 3

    Info

    Step 3

Contact info

2 / 3
How can we reach you?

This form collects your data so that we can correspond with you. Read our Privacy Policy for more information

  • 1

    Details

    Step 1
  • 2

    Contacts

    Step 2
  • 3

    Info

    Step 3

More information you want to tell us

3 / 3
How did you hear about us?
Region of Operation

This form collects your data so that we can correspond with you. Read our Privacy Policy for more information