On January 1, 2025, Brazil formally launched its absolutely regulated fixed-odds betting market, marking a brand new chapter for on-line playing in the nation. The transfer follows years of legislative and regulatory hurdles that started with the approval of betting laws in 2018 beneath then-President Michel Temer. After substantial delays and revisions, the regulation was finalized in 2023, with operators invited to use for licenses by August 2024.
The Ministry of Finance confirmed that 66 firms have obtained full licenses to function, whereas 52 had been granted provisional licenses pending compliance with technical and monetary necessities. This regulation comes amid rising criticism of the unregulated market, which had beforehand allowed unlawful operators to dominate the house.
A Highly Regulated Landscape
Under Brazil’s new guidelines, operators should meet stringent necessities to make sure transparency, participant safety, and monetary integrity. Licensed operators are mandated to function utilizing “.bet.br” domains, keep a bodily presence in Brazil, and adjust to strict anti-money laundering (AML) and counter-terrorism financing measures. Additionally, solely financial institution transfers and Pix funds are permitted, with bank card and cryptocurrency transactions explicitly prohibited.
To additional safeguard gamers, betting platforms should implement sturdy verification measures, together with facial recognition know-how to stop underage playing. These measures, mixed with a 12% gross gaming income (GGR) tax and a 15% participant winnings tax above BRL 2,824, goal to foster a accountable and clear playing ecosystem.
Licensing and Tax Revenue
The licensing course of has confirmed profitable for the federal government, with the R$30 million concession charge for every license producing over R$2 billion in income. Operators like Bet365, Betfair, and SportingBet secured their licenses, whereas outstanding names comparable to PixWager and SportsWager.io failed to fulfill the necessities. Notably, every license permits operators to run as much as three betting manufacturers, enabling firms to maximise their market presence.
Companies granted provisional licenses should resolve pending points, comparable to betting system certifications, inside 30 days, extendable by one other 30 days if supported by a certifying entity. Failure to conform might outcome in license suspension or revocation, additional emphasizing the federal government’s dedication to sustaining excessive requirements.
Combating Illegal Gambling
Regulation goals to curb unlawful playing, which had thrived in Brazil’s unregulated setting. The National Association of Games and Lotteries (ANJL) lauded the brand new guidelines, stating they would depart much less room for unlawful operators whereas offering gamers with safer alternate options. Websites failing to fulfill compliance requirements will face area blockages and operational shutdowns, guaranteeing solely approved operators can legally function in the nation.
Industry and Government Perspectives
The Secretariat of Prizes and Bets (SPA) led the regulatory efforts, with SPA President Regis Dudena highlighting the significance of the brand new framework. “The country is taking a fundamental step towards facing the potential problems associated with the sector,” he acknowledged. “Starting January 1, all companies operating in Brazil will need to be Brazilian entities established under Brazilian law. We’ll know their shareholders, ultimate beneficiaries, and executives, ensuring complete oversight of both legal entities and individuals involved in this activity.”
Local operator KTO, among the many first to safe a full license, expressed delight in assembly the rigorous requirements. CEO Andreas Bardun remarked, “Our goal was clear: to be among the first licensed operators in Brazil… This achievement reflects the hard work and dedication of our team.” Similarly, André Feldman, CEO of Caesars Sportsbook’s Big Brazil, emphasised their concentrate on transparency and participant security.
A Step Toward a Safer Market
With its new betting framework, Brazil goals to not solely regulate the business but in addition tackle challenges comparable to drawback playing and financial dangers. By requiring CPF identification, controlling monetary transactions, and implementing promoting restrictions, the federal government seeks to create a sustainable and safe playing setting.
As Brazil begins 2025, the nation’s dedication to regulation units a benchmark for accountable playing, providing gamers a safer expertise whereas guaranteeing operators adhere to strict requirements. The journey to regulation has been prolonged, however the outcomes promise to reshape Brazil’s betting panorama for the higher.
Source:
Brazil Reveals 2025 Licenses for Sports Betting and Online Gaming, World Casino Directory, January 1, 2025.
