Adapting to Brazil's Gambling Regulations in 2025

 

With the legislation of gambling and a series of regulations released back in 2024, Brazil faced significant changes. The new regulations continuously shape the way businesses navigate the industry as the government refines its legal frameworks. 

 

Understanding the evolving regulatory environment is crucial for anyone involved in Brazil’s gambling and sports betting sector. This article explores key updates, changes, and opportunities for stakeholders to stay ahead in this dynamic market. 

 

Gambling in Brazil: Current Landscape and New Developments

 

Brazil's gambling industry has undergone significant transformations over the past few years, from being prohibited from operating legally within the country and losing revenue to pushing the government to legalize the industry. 

 

Legal Sports Betting in Brazil

 

Legislation of sports betting became a turning point for the industry in Brazil. According to Law No. 14,790/2023, there are clear rules, regulations, and requirements, the main one being licensing for the legal operation of online betting and casino sites in the country. 

 

The key requirements are: 

• Obligatory license fee of R$30 million.  

• Meeting criteria to prove measures against money laundering and match-fixing. 

• Clear consumer protection policies. 

 

The Rise of Sports Betting and Live Sports Betting

 

The market is on the rise with the legislation of sports betting and the implementation of new consumer protection laws. 

 

According to Statista, the revenue in the sports betting market in Brazil is projected to reach $1.81 billion in 2025. Research indicates an expected growth rate (CAGR) of 14.35% in the which by 2029 will result in market volume reaching $3.10 billion. 

 

The country's rich sports culture only fosters the upward trajectory of the sports betting market. 

 

Key Gambling Regulations in Brazil for 2025: What to Expect

 

With the sports betting and gambling legislation in Brazil, the government also enforced certain rules and regulations. 

 

New Laws Affecting Sports Betting

 

There are multiple laws currently affecting the sports betting market in Brazil. However, 2025 is expected to bring more clarity in terms of guidelines and regulations than the market had during the last year. These laws range from mandatory authorization to license fees and are discussed in detail below. 

 

Advertising Rules & Restrictions 

 

The Brazilian Council for Self-Regulation in Advertising established specific guidelines for betting-related advertising. It approved Annex “X,” which took effect on January 29, 2024, and includes various consumer protection and truthful representation of information regulations. 

 

Key regulations include: 

• Advertising must be transparent and easily identifiable by consumers. 

• Only licensed operators have the right to advertise. 

• Responsible gambling principles must be applied to the created ads. 

• Each advertisement must include warning clauses. 

• Media placement restrictions to avoid advertising reaching minors. 

• Promotions and endorsements via celebrities and influencers are prohibited. 

   

   

Taxation 

 

Brazil’s current tax regime applies a fixed rate: iGaming operators are taxed at 12% on their Gross Gaming Revenue (GGR), in addition to standard corporate taxes. Player winnings exceeding BRL 2,824 (approx. USD 547.25) are subject to a 15% personal income tax.

 

While the system is currently based on GGR, experts anticipate possible changes aimed at better balancing revenues between operators and the government.

 

CPF monitoring 

 

Another regulation is mandatory monitoring by the Ministry of Finance of the CPF (tax ID) numbers of bettors. This measure aims to enhance transparency and prevent fraud and identity gambling addiction patterns to address them efficiently. 

 

According to AP News, CPF monitoring includes a regulatory framework that mandates betting operators to integrate CPF verification into their platforms. Additionally, operators are required to implement biometric verification methods, such as facial recognition, to further confirm the identity of bettors. 

 

Financial Regulations 

 

Operators are prohibited by SPA/MF Ordinance No. 615/2024 from accepting credit cards or any other method of postpaid payments to prevent customers from accumulating financial debt. Accepted payment methods include Pix, TED, and debit/prepaid cards for transactions. 

 

Licensing Process for Gambling Operators

 

Gambling operators in Brazil are required to undergo a licensing process before they can start legal operations. The process can take from 8 to 12 months and includes stages such as document review, compliance verification, and platform certification. 

 

The documents operators are required to present include the following: 

• Corporate registration and proof that 20% of shares are owned by a Brazilian partner. 

• Financial documentation and evidence of R$5 million financial reserve, tax documents, and bank documents. 

• Employee qualifications documents prove that employees have no criminal records or legal violations. 

• Technical certificates prove that the platform meets compliance requirements. 

 

After the license is received, licensed operators are also obligated to use the “.bet.br” domain for their websites and provide free 24/7 customer support based in Brazil in Portuguese. 

 

Consumer Protection and Responsible Gambling

 

Brazil encourages consumer protection and responsible gambling initiatives by enforcing several operational and compliance rules. For instance, operators are required to implement consumer protection measures, which include tools that allow for spending limits and self-exclusion. 

 

Another consumer protection and financial compliance regulation that operators must adhere to is ensuring transparent and secure financial operations. Operators can accept payments exclusively via Pix, TED, and debit/prepaid cards for transactions.

 

Furthermore, AML guidelines state that Politically Exposed Persons, sanctioned people, and people with sporting influence, such as athletes or coaches, should be on the player exclusion list. 

 

Opportunities in Brazil’s Expanding Sports Betting Market

 

The continuously expanding sports betting market in Brazil, along with the new laws and legislations, provides more opportunities for growth for companies in the industry than ever before. 

 

Potential for Growth in the iGaming Industry

The potential for growth of the iGaming industry in Brazil is quite promising. The revenue in the gambling market is projected to reach $7.02 billion in 2025, according to Statista. The same research also suggests that the trajectory of growth will be at 6.54% annually (CAGR), which will result in the market volume reaching $9.04 billion by 2029. 

 

The legislation of online gambling and regulated frameworks are expected to boost Brazil’s economy, allowing operators to capitalize on this opportunity and increase interest from the population. Besides, operators are gaining access to the largest market in Latin America, which provides them with a vast base of potential customers. 

 

The Role of Technology in Adapting to New Regulations

Technology plays a pivotal role in helping operators and key stakeholders adapt to new regulations. The recent enactment of Law No. 14,790/2023 has introduced comprehensive regulations for fixed-odds betting, emphasizing the integration of advanced technological solutions. These solutions include:

 

• Advanced systems for effective player identification and verification are known as KYC (Know Your Customer) protocols. These systems include biometric verification to identify an individual’s age and tax number. 

• Online gambling systems must be certified by accredited laboratories (e.g., ISO 27001) and must store data in Brazil, unless a legal cooperation agreement is in place with the operator's home country. 

• All gambling platforms and systems must be synchronized with local databases for regulatory oversight. 

• SPA under the Ministry of Finance is also leveraging tech solutions for enhanced monitoring and real-time tracking of transactions. 

   

   

Challenges to Overcome for Successful Entry into Brazil’s Market

Successful entry into Brazil’s market requires considerations in terms of legal complexities, local partnership, and sponsorship management, as well as the need to adapt to new gambling regulations. 

 

Navigating Bureaucracy and Legal Complexity

 

Brazil’s gambling market is characterized by a multi-layered regulatory environment that poses significant challenges. The landscape involves oversight at federal, state, and municipal levels. 

 

Law 14/790, enacted in December 2023, established a centralized federal licensing system by SPA requiring a mandatory fee of R$30 million. However, some states issue their own licensing regimes, including Rio de Janeiro, Paraíba, Paraná, and Maranhão, which complicates the regulatory landscape further. To be more specific, Rio requires a licensing fee far less than the law states and permits operators to function both statewide and internationally. 

 

Another complex aspect is taxation policies, which, in particular, have been a focal point of discussion. As of January 1, 2025, licensed operators are subject to a 12% tax on Gross Gaming Revenue (GGR). Additionally, operators must navigate a complex tax structure that includes contributions such as the Social Assistance Contribution (COFINS) at 7.6%, the Contribution to the Social Integration Program (PIS) at 1.65%, and the Municipal Service Tax (ISS), which varies between 2% and 5% depending on the municipality.

 

Overall, the dynamic nature of Brazil’s gambling legislation requires operators to be flexible in case of changes. 

 

Managing Local Partnerships and Sponsorships

The cultivation of local partnerships and sponsorships is crucial for gaining trust among Brazilian consumers. The cultural significance of sports and regional preferences can be leveraged to build brand credibility. 

 

For instance, the Brazilian betting landscape has seen a substantial increase in sponsorship investments between 2020 and 2024. In fact, sponsorship spending grew from 3.8 billion to $13.3 billion, with over 60 active deals involving 27 brands totaling $210 million annually, according to Sport Quake.

 

Operators like Betano pointed out that localization and sponsorship are keys to success in Brazil’s gambling market. By sponsoring major tournaments such as Copa América and partnering with top-tier football clubs, Betano has enhanced its brand visibility and fostered deep connections with local audiences.

 

How Operators Can Adapt to Brazil’s Gambling Regulations

Operators need to adapt to Brazil’s gambling regulations for successful and profitable operations in the South American market. Key considerations include licensing and compliance, advertising and sponsorship regulations, and taxation and financial obligations. 

 

It is crucial to check these requirements not only on the federal level but also on the state level to ensure full regulatory compliance and legal operations. For successful adaption, it is advisable to engage with local legal experts and consultants to navigate the complexities of Brazil’s gambling regulations. 

 

The Future of Gambling in Brazil

The Brazilian online gambling market is projected to grow through upcoming years, with the market racing revenue of approximately  $4.03 billion by 2029, according to Statista. Brazil’s population exceeds 210 million people, making it one of the largest markets in Latin America, with a high percentage of the population already engaged in offshore gambling. This presents a huge opportunity for operators to tap into a new market and establish themselves as trustworthy and credible companies. 

 

The cultural aspect of the country and deep-rooted love for sports also indicated significant opportunities in online sports betting. In fact, it will be one of the significant aspects that will fuel growth. 

 

Conclusion

Successfully entering Brazil’s gambling market requires strategic action. Companies must navigate complex bureaucracy and compliance challenges and build strong local partnerships to establish brand credibility.

 

Overall, Brazil’s gambling market has huge growth potential, and leveraging the opportunity right will allow operators to tap into one of the largest markets in Latin America. In this evolving landscape, operators must offer competitive, real-time sports data and live odds to meet the demands of a new customer base. 

 

FeedConstruct can play a pivotal role in this journey by providing comprehensive solutions for operators and providers ranging from Odds Feed to Live Scouting Data. 

 

Live Scouting Data is one of the core products at FeedConstruct’s offerings. Our in-house team of 2000+ scouts gather data across 18 sports with the fastest data transmission times in the world, which takes under 0.5 seconds. Live Scouting Data partners with over 60+ exclusive sports federations and leagues covering 7000+ monthly matches. 

 

OddsFeed provides partners with access to a wide range of sports odds including 140,000+ pre-match events and 90,000+ live matches monthly in over 2000+ odds markets. It allows operators to offer engaging betting experiences to their clients and keep players returning for more. To ensure reliable and accurate data updates, our team of over 700 traders calculates the odds based on data gathered via the Live Scouting solution.

 

We provide timely and accurate information essential for building engaging bettors, building trust and making informed decisions.