Brazil is one of the countries where gambling was common, but there was no proper and concrete regulation in the past. Therefore, the gaming sector was more or less situated in a gray area, although legalized and accessible for the country’s residents.
However, all this is expected to change as the country has realized the potential of the growing gaming sector and the need to implement better control over it. Brazil has decided to take a firm step to change its legislation and make the rules more stringent, transparent and effective to put the gaming sector on the right track.
Land-based and Online Casinos in Brazil – Then and Now
For a long time, especially before 1940, the country’s gambling scene was quite conservative. Most forms of gambling were banned, except for horse racing and state lotteries.
Under the Misdemeanors Act of 1941, all forms of gambling activities in the country were banned except for poker, as it was considered more of a game of skill than luck. However, things began to change in 1971 with the legalization of the state-owned Federal Lottery.
Later, in the mid-1980s, gambling began to gain traction and became popular. It was finally legalized in Brazil under federal law 13.756/2018, but remained unregulated until 2023. This is when the transformation of the gaming sector in Brazil began.
The country introduced some of the first legal frameworks related to the taxation and regulation of online sports betting – online casinos have also gained great popularity, and now players can choose from the best Brazilian casino sites sorted by various categories and game features.
The Gaming Market and the Popularity of Online Casinos in Brazil
Modern internet technologies have not gone unnoticed in Brazil, and the growing popularity of online gaming has affected the country’s market as well. This is because new gaming platforms have emerged and started accepting Brazilian players, as there was no specific regulation to prohibit access to online gaming platforms.
In 2023, the country passed stricter regulations regarding online gambling in an attempt to control the market. This process naturally attracted many online casinos who saw the potential in the evolving Brazilian gaming scene.
Many popular casino brands from Europe and North America have started to enter the Brazilian market through local partnerships. At the same time, local operators have started to emerge, offering personalized services aimed at local players.
All this has diversified the overall gaming landscape in the country, making it more competitive. Nowadays, players are showing great interest in online slots, live dealer games, and sports betting. At the same time, mobile gaming has also gained momentum thanks to the widespread use of mobile devices.
The Focus on Gaming Licensing Rules
The reshaping of the gaming landscape in Brazil is related to two main laws that marked the beginning of stricter regulations. One was Law No. 13,756/2018, which was related to fixed-odds betting. The other was Law No. 14,790/2023, which basically extended regulations to online casinos and virtual sports.
Currently, under the latest regulations, all operators in the country are monitored by the Secretariat of Prizes and Betting (SPA/MF). Online casinos wishing to operate in the local market must obtain a license.
It typically costs R$30 million (US$5.18 million) and grants operators a 5-year, non-transferable license. However, it allows operators to operate up to three separate iGaming brands under a single approval.
Transparency and Taxation
According to the new regulations in the country, there is a 12% tax on gross gaming revenue. The revenues are used to fund public sectors such as education, healthcare, and different social programs.
Additionally, players are also required to pay taxes on their winnings. The tax rate for players is 15% on net winnings that exceed R$2112, which is approximately US$364.
There are severe penalties for companies that fail to adhere to the strict requirements. For example, operators who violate the regulations can be fined up to R$2 billion (approximately US$345 million). They also lose their license and the chance to apply for new licensing procedures in the future.
Opportunities in the Brazilian Gaming Market
With the latest regulations in place, the Brazilian gaming market has gained momentum and is expected to continue to evolve in 2025. Here are some of the key aspects that could positively influence the industry:
- Market size potential: The country has over 210 million residents. It is the largest market in Latin America, and is currently transitioning from unregulated to legal gaming channels.
- Digital Expansion: Online casinos and sports betting platforms are gaining traction, especially with football fans leading the way.
- Local payments: The success of PIX and other local methods allows for flexible, convenient and, at the same time, secure transactions. This tends to be a key advantage for operators entering the market.
Main Regulatory Organizations in the Country
With the strict regulation of gaming activities, specific institutions have emerged as key organizations that oversee the industry. The Ministry of Finance is responsible for clarifying and updating specific legal frameworks and monitoring potential legislative changes. Here are some other regulatory bodies that oversee gaming regulations in the country:
- Secretariat of Prizes and Bets (SPA): This organization is part of the Ministry of Treasury and oversees licensing procedures. It is also responsible for monitoring the fairness of sports betting activities.
- Ministry of Sports: Collaborates with the SPA, and its task is to maintain the integrity of the betting market. This organization can also determine which sports will be eligible for betting.
- Federal Revenue Service (INRS): All taxes related to gaming are collected by this organization. The institution is responsible for ensuring that operators adhere to the country’s tax requirements.
- Consumer Protection Agency (Procon): Its main focus is to protect players from fraudulent practices and, at the same time, prioritize transparency and consumer rights.
Final Considerations
Full regulation of the gambling industry will help Brazil position itself in the international gaming market. The country has great potential to do so, as various forms of gaming activities are widely accepted and accessible. This lays a solid foundation for many operators to enter the Brazilian market, diversify it and make it even more competitive.
