Brazil Passes Legal Framework for Games Legislation Insights
The Ministry of Finance oversees the country’s financial and economic policy, including those relating to the gambling industry. In addition to ensuring sufficient funding for these activities, the government is legally obligated to support the cultivation of a skilled workforce for the electronic games industry. This includes the establishment and promotion of professional training, as well as encouraging the research and development of educational games. Electronic game development companies with gross revenues of up to R$16 million in the previous calendar year, or average monthly revenues of R$1,333,334, will qualify for a special promotional incentive for electronic games.
Episode 24: What do we actually mean when we talk about grey market gambling?
In the vast majority of cases, these political movements and legal transformations involve partnering with the private sector to make lotteries more effective and profitable. Horse-race betting is restricted to non-profit entities that own the racecourses, duly authorised by the Ministry of Agriculture, Livestock and Food Supply. These entities may appoint agents to facilitate betting on their behalf and can also hire private suppliers, which are not subject to licensing or any specific regulation. Article 51 of the Criminal Misdemeanour Law also prohibits the operation or promotion of unauthorised lottery games in Brazil, including the distribution of foreign lottery tickets in the country. The Brazilian numbers game jogo do bicho (animal game), which is similar to a lottery, is also prohibited. The term ‘game’ is a contract type expressly named but not defined by the Civil Code.
- Normative Ordinance No 1,225 Inspection measures will apply to those individuals or legal entities that have the required authorisation from the SPA to operate fixed-odds betting.
- The desire for a strong, independent gaming authority that can oversee licensing, regulation, and enforcement remains a key sentiment among stakeholders.
- By 2025, this landscape is expected to expand significantly, encompassing broader gambling activities such as casino gaming and potentially even iGaming.
- Regulations and licensing requirements for gambling operators in Brazil are still being developed and may change.
- In Rio de Janeiro, for example, online bets are treated as if they occur within the state’s territory for all legal purposes, regardless of where the bettors are physically located.
The Brazilian government acknowledges the urgent need for further regulation to combat illegal gambling, safeguard consumers, and bolster tax revenue. Brazil’s gambling market is now fully regulated, but a common pitfall for gambling operators is underestimating the complexity of regulatory frameworks. Operators must overcome a demanding compliance framework to secure and maintain a licence, and underestimating the challenges can lead to delays or even rejection of licence applications.
Sweden government appoints Eldhagen to oversee gambling regulation
Foreign companies can participate by establishing subsidiaries that meet these requirements. Besides the ordinary corporate taxes, gambling companies’ activities are also subject to the following taxes. The state-owned Caixa Econômica Federal currently runs the federal lottery and has recently launched a website to sell lottery tickets.
Armed with investigative powers, SENACON can probe consumer complaints, penalise deceptive marketing, and impose fines on non-compliant operators. In 2025, its focus is sharper than ever, and licensed operators must offer self-exclusion options, betting limits, and support for problem gambling. By holding operators accountable, SENACON helps create a safer, more transparent, and ethically responsible gambling environment in Brazil. With the authority to investigate tax discrepancies, flag irregularities, and recommend penalties for non-compliance, GTI-Bets plays a key role in maintaining transparency. By submitting bi-monthly reports to federal authorities, it actively shapes tax policies, reinforcing financial integrity across Brazil’s regulated gambling sector.
Moving forward, Brazil’s approach to regulation will most likely set a precedent for other developing markets that are striving to harmonize economic benefits with domestic regulatory control. There is also the traditional old-fashioned perception that gambling activities in Brazil are a cover for money laundering and that gambling activities are operated by criminal organisations. This derives from the fact that, despite the general prohibition currently in place, bingo halls, slot machines and jogo do bicho can be easily accessed in Brazil. It has yet to be defined whether betting on the results of lottery draws, including on the national lottery, will be permitted under this concept of online games. It is expected that this will be specifically addressed in the forthcoming ordinances to be published by the Ministry of Finance.
One of the three regulatory ordinances published by the SPA on August 1 expressly allows operators to set their own rules for loyalty bonuses and other incentives that may be offered to established players. Brazil’s government has approved a sin tax on gambling but has yet to define the exact rate. With no cap on online casino curacao legal the tax, the potential financial impact on operators remains uncertain. Gambling businesses should monitor legislative updates closely and develop contingency plans to offset potential tax hikes through pricing strategies and operational efficiencies. A transition period allows “.com.br” domains to remain active for a limited time.
No personal authorisations or licences are currently available for fixed-odds betting activities. Regarding application fees, BRL30 million allows the operation of up to three commercial brands by the legal entity via its electronic channels. The Ministry of Agriculture, Livestock and Food Supply is responsible for the regulation of horse race betting. According to Article 50 of the Misdemeanours Law, a person is guilty of illegal betting if they establish or explore games of chance, an offence punishable with imprisonment for between three months and a year, and with a fine. Anyone found to be taking part in a game of chance, even via the internet or any other means of communication, as a cashier or bettor, is subject to a fine ranging from BRL2,000 to BRL200,000. Institutions not authorised to operate by the Central Bank of Brazil are prohibited from acting as intermediaries in payment transactions between the bettor and the betting operating agent, including through collection agents or payment managers.
This amendment provides for the registration of electronic games as a form of industrial property protection. Certain transactions must be automatically reported, such as cash prize payments over 10,000 BRL or transactions linked to suspected terrorism. If no suspicious activities are reported within a year, operators must submit a negative certification by 31 January of the following year. WA.Technology is a leading, award-winning iGaming solutions provider uniquely positioned to support operators entering the Brazilian market. WA.Technology’s Latam success is built on bespoke localisation, expert-led teams, and an extensive portfolio of creatively tailored products, solutions, and services.
Otherwise operators may have been required to withhold 15 percent from every winning sports bet or online gaming session. Another area of uncertainty had been whether a statutory requirement for each operator to be at least 20 percent owned by a “Brazilian” would necessarily require foreign operators to take on a local investment partner. In June, the SPA clarified that the “Brazilian” could be either an individual or a legal entity, enabling foreign companies to meet the requirement by applying via a subsidiary incorporated and headquartered in Brazil. “Now, for the first time, Brazil has clear directions on how betting advertising shall be conducted and how the responsible gambling principles shall apply to their operations in order to protect minors and the vulnerable,” Seckelmann explains. Normative Ordinance No 1,231 informed operators they must “act diligently” in the development of their betting systems, as well as advertising and marketing, with RG principles respected to try and combat the rise of gambling addictions. The ordinance established the SPA can coordinate with other public bodies to monitor activities and ensure ongoing compliance with regulations.
Furthermore, Brazil established a Sin tax as part of a broader tax reform package that is yet to come into effect. 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. 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. In the past two years, there have been significant advances by the Brazilian government in consolidating a legal and structured market for sports betting and online gambling.
Always consult official sources for the most up-to-date information before making any gambling-related decisions. Unlicensed operators will face site blockages, financial penalties, or operational suspension. The SPA and the National Telecommunications Agency (Anatel) will collaborate to improve enforcement and compliance.
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. 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 populace. 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 Framework encompasses various aspects of electronic games, including their intangible and technical dimensions.
“Electronic Games” refers to (i) interactive audiovisual works created as computer programs; (ii) the software they operate on; and (iii) the necessary and complementary hardware required for their execution. The text of the law acknowledges the increasing popularity of streaming games, explicitly including this form of play in its definition of electronic games. The information provided on this page was accurate at the time of publication, but may not reflect the current regulatory landscape.
These regulations create a strict and controlled environment for the operation of betting in Brazil, ensuring that the activity is conducted responsibly and in compliance with the laws, and citizens are protected. Fantasy betting, either land-based or online, is unregulated in Brazil as it is considered a game of skill and, therefore, falls outside of the scope of the MCA. These agencies step in to oversee disputes as well as ensure promotional transparency and adherence to advertising standards. They are also responsible for enforcing responsible gambling tools, such as mandatory limits, pauses and self-exclusion. A federal licence from the SPA allows operators to offer fixed-odds betting services across the country, with an application fee of BRL30 million for five years. The system’s widespread adoption means that any operator looking to establish a foothold in Brazil must offer PIX as a payment option.
