On January 1, 2025, Brazil took a significant step toward legalizing and regulating its gambling market. This process was made possible by the adoption of Law No. 14.790/2023, which established a new legal framework for the lawful operation of betting and online casinos. This historic legislative change opened up new opportunities for operators and players alike, while also creating significant challenges in terms of legal regulation and social responsibility. In this article, we examine the key aspects of the updated regulatory framework for the gambling sector in Brazil.
Licensing
Law No. 14.790/2023 is a key element of the new legal framework governing Brazil's gambling market. Under the new regulations, conducting gambling activities requires a gambling license. The industry is supervised, and licenses are issued, by the Secretariat of Prizes and Bets (SPA), the competent regulatory authority.
Obtaining a license requires payment of a government fee of 30 million reais (approximately USD 6 million), as well as compliance with a number of regulatory requirements. The license is valid for five years and permits operations throughout the country.
The license grants the right to conduct the following types of gambling activities:
A distinctive feature of Brazil's gambling regulation is that poker tournaments do not require a license, as they are legally classified as games of skill. However, bingo and land-based casinos remain prohibited.
It is also worth noting that Brazil does not license B2B activities, such as the provision of gambling-related services, including software supply, marketing, and payment services. As regards service providers in the gambling sector, the regulatory framework primarily requires mandatory certification of gaming software.
Licensing Requirements. To obtain a license, a prospective operator must meet the following criteria:
Regulatory Requirements for Gambling Operations
Once licensed, an operator is required to comply with applicable regulatory standards, including the following:
Taxation
One of the central aspects of the new gambling regulatory framework is taxation. Under the new rules, in addition to paying standard corporate income tax, all gambling operators are required to pay tax on Gross Gaming Revenue (GGR) at a rate of 18%. This represents an increase from the previous rate of 12%. Operators are also required to withhold a 15% tax on winnings from payouts and remit it to the state budget as tax agents for their players.
Potential Tightening of Gambling Regulation
Given growing concerns about gambling addiction, a new bill aimed at tightening the rules applicable to gambling operators was proposed in July 2025. The proposed additional measures include:
Conclusion
Brazil is one of the most promising markets for many gambling operators. The introduction of the new regulatory framework has been a significant step toward establishing a lawful and transparent gambling market. For businesses, this creates new opportunities for growth while contributing to a safer and more efficient gaming environment.
However, as is common in jurisdictions with relatively new gambling legislation, Brazil's regulatory framework is not yet fully developed, which may create certain legal and practical uncertainties in the licensing process and the conduct of gambling operations. Moreover, given that the new regulatory regime only came into force in 2025, the market remains in a transitional phase and may be subject to further legislative changes — either through the relaxation of certain restrictions or, conversely, through the introduction of stricter requirements.
For more detailed information on the regulation of the gambling sector in Brazil, please contact the specialists at Solex Group.
Keywords: gambling regulation, Brazil, gambling legislation, casino games in Brazil, betting in Brazil.
Licensing
Law No. 14.790/2023 is a key element of the new legal framework governing Brazil's gambling market. Under the new regulations, conducting gambling activities requires a gambling license. The industry is supervised, and licenses are issued, by the Secretariat of Prizes and Bets (SPA), the competent regulatory authority.
Obtaining a license requires payment of a government fee of 30 million reais (approximately USD 6 million), as well as compliance with a number of regulatory requirements. The license is valid for five years and permits operations throughout the country.
The license grants the right to conduct the following types of gambling activities:
- fixed-odds betting;
- virtual games and sports event simulators;
- online casino games (classic slots, roulette, blackjack, baccarat, and dice games — in virtual or live formats);
- other interactive online games of chance (games in which the outcome depends on chance rather than player skill).
A distinctive feature of Brazil's gambling regulation is that poker tournaments do not require a license, as they are legally classified as games of skill. However, bingo and land-based casinos remain prohibited.
It is also worth noting that Brazil does not license B2B activities, such as the provision of gambling-related services, including software supply, marketing, and payment services. As regards service providers in the gambling sector, the regulatory framework primarily requires mandatory certification of gaming software.
Licensing Requirements. To obtain a license, a prospective operator must meet the following criteria:
- the company must be registered in Brazil, with at least 20% of its shares owned by Brazilian residents;
- the company must provide evidence of paid-in share capital of at least 30 million reais. It is also required to maintain a financial reserve of 5 million reais to ensure financial stability;
- the company's management must include at least one director who is a resident of Brazil;
- the operator must develop AML policies and comply with strict anti-money laundering and counter-terrorist financing requirements;
- the operator's online system must include appropriate KYC mechanisms and safeguards for players' personal data;
- the operator must establish systems to protect players' rights and prevent gambling addiction;
- the gambling operator's website must use a .br domain;
- the operator must comply with all applicable legal and regulatory requirements, including age restrictions and advertising requirements.
Regulatory Requirements for Gambling Operations
Once licensed, an operator is required to comply with applicable regulatory standards, including the following:
- bets may be accepted exclusively in fiat currency; digital currencies are prohibited. Operators are also prohibited from accepting credit cards from players as a payment method (only debit cards are permitted);
- the operator is required to report the results of its gambling activities to the SPA and submit financial statements to the tax authorities in a timely manner;
- player verification is mandatory when opening each gaming account. As part of their KYC procedures, operators are required to identify and verify players in order to prevent fraud and unlawful participation in gambling;
- every operator must implement a responsible gambling policy, including self-control mechanisms for users, such as self-exclusion features and the ability to set betting limits.
Taxation
One of the central aspects of the new gambling regulatory framework is taxation. Under the new rules, in addition to paying standard corporate income tax, all gambling operators are required to pay tax on Gross Gaming Revenue (GGR) at a rate of 18%. This represents an increase from the previous rate of 12%. Operators are also required to withhold a 15% tax on winnings from payouts and remit it to the state budget as tax agents for their players.
Potential Tightening of Gambling Regulation
Given growing concerns about gambling addiction, a new bill aimed at tightening the rules applicable to gambling operators was proposed in July 2025. The proposed additional measures include:
- raising the minimum age for participation in gambling;
- introducing further restrictions on gambling advertising in the media, with particular emphasis on protecting minors;
- introducing limits on player spending and additional financial capacity checks before large bets may be placed.
Conclusion
Brazil is one of the most promising markets for many gambling operators. The introduction of the new regulatory framework has been a significant step toward establishing a lawful and transparent gambling market. For businesses, this creates new opportunities for growth while contributing to a safer and more efficient gaming environment.
However, as is common in jurisdictions with relatively new gambling legislation, Brazil's regulatory framework is not yet fully developed, which may create certain legal and practical uncertainties in the licensing process and the conduct of gambling operations. Moreover, given that the new regulatory regime only came into force in 2025, the market remains in a transitional phase and may be subject to further legislative changes — either through the relaxation of certain restrictions or, conversely, through the introduction of stricter requirements.
For more detailed information on the regulation of the gambling sector in Brazil, please contact the specialists at Solex Group.
Keywords: gambling regulation, Brazil, gambling legislation, casino games in Brazil, betting in Brazil.