Just recently, Brazil legalized gambling and betting, thus opening itself up as a promising and gambling-friendly jurisdiction for multiple businesses. Learn how to comply with gambling and betting laws in Brazil and what a business needs to do to operate there successfully.
Kris Galloway
Head of iGaming Product at Sumsub
This January, however, Brazil officially launched its regulated online betting and gambling market, marking a significant milestone in the country’s gambling landscape. This new regulatory framework aims to capture the substantial revenue previously lost to offshore platforms, with projections estimating that the market could generate over R$10 billion ($2 billion) annually in tax revenues for the government.
The Brazilian government has already issued 68 licenses for online gaming and sports betting as part of its regulatory efforts. Additionally, there are plans to vote on legalizing land-based casinos in the first half of 2025, which could further expand Brazil’s gambling landscape. Therefore, Brazil is now considered one of the top gambling-friendly jurisdictions.
Let’s explore how Brazil’s gaming, betting and gambling platforms should comply with the new regulations and whether foreign operators can enter the Brazilian market.
On January 1, 2025, new regulations officially took effect. Brazil is now set to fully regulate gambling in 2025, introducing clear rules for licensing, taxation, and compliance. While this presents challenges for operators, it also creates opportunities.
This evolving framework aims to create a secure, well-regulated gambling market in Brazil.
Suggested read: A Global Guide to AML Compliance in Gambling, Gaming, and Betting (2024)
Fixed-odds betting operations in relation to sport events and online games are now allowed upon licensing from the Ministry of Finance. The license carries a cost of BR$30 million (US$6.1 million) for a five-year validity period.
Brazil gambling, betting and iGaming operators must be headquartered in Brazil, with foreign operators prohibited from offering regulated gambling. This measure aims to ensure the Brazilian government can collect taxable revenue, with operators subject to a revenue tax. Additionally, operators should consider integrity, responsibility, and honesty standards outlined by the Associação Brasileira de Defesa da Integridade do Esporte’s (ABRADIE) and the Instituto Brasileiro de Jogo Responsável (IBJR).
Further requirements for operators include maintaining a minimum share capital and meeting various technical criteria. Notably, players will benefit from a reduced 15% tax on winnings, a significant decrease from the initially proposed 30% tax.
Ordinance Nº 1.143 enacted by the Secretary of Prizes and Bets regulates the policies, procedures, and internal controls for the prevention of money laundering that betting operators must adopt, reflecting a strong emphasis on security and structural integrity. This will require that market operators implement a policy regarding KYC, as well as efforts to analyze betting patterns and user groups to ensure demonstrable AML efforts are in place. This is particularly important as Brazilian regulators audit licensees going forward.
Ordinance Nº 1.231 sets rules for “Responsible gaming,” requiring that betting operators exert control on betting behavior that might resemble patterns of a gambling addiction. Also, it sets rules for registration and authentication, making it mandatory to register facial biometrics upon registration and allowing operators to register other types of biometrics that can be used for logging into the betting platform. There are also strict rules regarding individuals prohibited from betting, such as those with considerable influence on operators, public employees, sportspeople, individuals diagnosed with a gambling addiction, and more—all of which must be integrated into the KYC process for operators seeking to enter the market.
Finally, Ordinance Nº 722 defines the technical and information security standard that must be adopted by the betting operators and their service providers, requiring certifications such as ISO 27001.
In Brazil, authorized operators are mandated to follow Responsible Gambling protocols. This involves instituting measures to deter problematic gambling behaviors, such as self-exclusion mechanisms and stringent deposit limits. Moreover, Ordinance Nº 1.143 requires betting operators to ensure that their service providers have a good governance and Environmental, Social, and Governance (ESG) program.
To uphold transparency and ethical standards, authorized operators undergo routine audits. These evaluations, carried out by local regulatory bodies, uphold game integrity, enhancing players’ trust in the fairness and transparency of operations.
Suggested read: What is Responsible Gaming?
Brazilian gambling regulations are still not 100% clear, making it difficult to determine which compliance requirements will be in place. However, Sumsub’s Full-Cycle Verification and Fraud Prevention solution can certainly fulfill KYC/AML, CPF check, and fraud prevention, as well as ensure Responsible Gambling, today.
Sumsub’s Full-Cycle Verification and Fraud Prevention solution allows you to:
Sumsub also prevents all gambling-specific fraud in real-time, including:
