Legal Brazil betting market launches with 14 companies receiving full licences

Brazil has been waiting for this moment since the national congress first approved legislation for online betting in November 2018, with outgoing president Michel Temer signing it into law in the following month. 

However, it took until December 2023 for the chamber of deputies to give the law its final green light. The SPA released a series of regulations in 2024 informing operators of the rules necessary to secure a licence.  

The licensing window opened in May, with a 20 August 2024 deadline for operators to ensure they would qualify for the January launch date.  

Only those companies that applied ahead of that deadline have received authorisation so far.  

The provisional licence will last for a period of 30 days. These companies have paid the BRL30 million (£3.9 million/€4.7 million/$4.8 million) licence fee but are facing issues, such as delays to the certification of betting systems. 

However provisional licences can be extended for another 30 days provided the companies receive support from certifying entities that agree the provisional authorisation needs to be extended so full certification can be conducted. 

The current list of full licensees is as follows: 

Among the notable absentees from the licensees are PixBet, BetMotion and SportsBet.io, the latter of which announced the closure of its Brazil operations earlier this week. 

Of the full licences granted by the Secretariat of Prizes and Bets (SPA), A2FBR LTDA received two to operate six betting brands in Brazil by virtue of each licence being able to include up to three skins. 

Brazil betting regulation looks to tackle ongoing issues 

It has certainly not been a smooth road to regulation in Brazil, with long delays to getting legislation over the line resulting in a wave of criticism against the sector during Q3 and Q4 of 2024. 

SPA chief Regis Dudena believes Brazil can work to ensure a safe environment for bettors, now the market is fully regulated.

“The country is taking a fundamental step towards facing the potential problems associated with the sector,” Dudena said of the 1 January launch. 

“The conclusion of the regulation and the completion of the first round of authorisations place fixed-odds bets offered nationwide under state control. 

“We will start 2025 with strict and clear rules, in addition to mechanisms to demand their compliance, operators [will] be held accountable.”

Huge opportunity awaits operators

Local operator KTO was one of the 14 companies to receive a full licence and founder and CEO Andreas Bardun took to LinkedIn to note he is “thrilled” the hard work of his team has paid off. 

“From the start, our goal was clear: to be among the first licensed operators in Brazil,” Bardun said in a LinkedIn post. “While others claimed the title simply by applying, we understood the journey was far from over until full approval was secured. 

“This achievement reflects the hard work and dedication of our team and we’re excited to bring a fully licensed and trustworthy experience to our customers in Brazil.” 

Caesars Sportsbook’s Big Brazil has been granted a provisional licence pending final approval.

Big Brazil CEO André Feldman said he hopes to draw upon Caesars’ vast experience in global entertainment to attract bettors in a responsible manner. 

“Caesars Sportsbook’s goal is to provide a safe experience for customers and ensure that all regulations are met,” Feldman said in a statement. “The Caesars Group is a giant in the sector, with a robust structure. 

“We fight for regulation in Brazil and the brand is committed to acting as transparently and responsibly as possible to provide our users with the best Vegas experience in Brazil.” 

What rules will betting companies need to adhere to in Brazil? 

In 2024 the SPA laid out its betting regulations through various Normative Ordinances. 

One rule requires legal betting operators in Brazil to include ‘.br’ at the end of their betting domains to make it easier for bettors and authorities to know which websites are licensed versus unlicensed.

Bettors will need to register with facial recognition to restrict betting from minors, while monetary transfers can only be made to and from accounts authorised by the Central Bank of Brazil. Betting with credit and cryptocurrencies is banned. 

Operators will pay a taxation rate of 12% of gross gaming revenue (GGR), with other taxes taking the total effective rate to around 36% according to the National Association of Games and Lotteries (ANJL). Additionally, there will be a 15% tax on player winnings above BRL2,824. 

The ANJL believes the now active regulations will be effective in tackling the black market and should prevent the negative stigma against betting from growing. 

“With the disclosure and compliance with the rules, ANJL believes that illegal operators will have less and less space and, consequently, Brazilian bettors will be more protected,” the ANJL said. 

The ANJL also described the government’s decision to grant provisional licences as “sensible and fair”. This allows certifying entities to meet the demand for authorisation over a longer time period.  

“The measure is essential for the continuity of the operation of dozens of serious bets that, if suspended, would certainly lose a good part of their customer portfolio to the illegal market,” the body concluded.