Brazil Launches Regulated Online Betting Market
On Wednesday, January 1st, Brazil officially launched its long-awaited regulated online betting market, with 14 companies receiving full authorization to operate. An additional 52 companies have been granted provisional licenses, requiring them to address specific issues before a full launch.
Brazil has been anticipating this moment since the National Congress initially approved online betting legislation in November 2018, which was then sanctioned by outgoing President Michel Temer the following month.
However, the final green light from the Chamber of Deputies was delayed until December 2023. The SPA (Secretariat of Prizes and Bets) subsequently released a series of regulations in 2024, outlining the requirements for operators to obtain a license.
The licensing window opened in May, with a deadline of August 20, 2024, for operators to ensure qualification for the January launch date.
To date, only companies that submitted their applications before the deadline have received authorization.
Provisional licenses are valid for 30 days. These companies have paid the license fee of R$ 30 million (approximately £3.9 million / €4.7 million / $4.8 million) but are facing challenges, such as delays in the certification of betting systems.
These provisional licenses can be extended for another 30 days, provided that the companies receive support from certifying entities that agree an extension is necessary for full certification.
Current List of Fully Licensed Operators:
The following companies have received full licenses:
- SPRBT INTERACTIVE BRASIL LTDA (Superbet, MagicJackpot, SuperO)
- IGAMING BRAZIL LTDA (7Games, Betão, R7BET)
- BETBOOM LTDA (BetBoom)
- LINDAU GAMING BRASIL SA (Fazobetai, Oleybet, Betpark)
- MMD TECHNOLOGY, ENTERTAINMENT AND MARKETING LTDA (Rei do Pitaco, Pitaco)
- NSX BRASIL SA (BetNacional, Mr Jack Bet)
- APOLLO OPERATIONS LTDA (KTO)
- GALERA GAMING ELECTRONIC GAMES SA (Galera.bet)
- BOA LION SA (BetMGM, MGM)
- DIGIPLUS BRAZIL INTERACTIVE LTDA (ArenaPlus)
- ALFA ENTRETENIMENTO SA (Alfa.bet)
- BLAC GAMES LTDA (SportyBet, LanceBet)
- SEGURO BET LTDA (Seguro Bet, King Panda)
- A2FBR LTDA (Betting Exchange, FullTBet, BetBra)
- A2FBR LTDA (Pinnacle, Matchbook, Verdinha)
Notably absent from the list are PixBet, BetMotion, and SportsBet.io, which announced the closure of its Brazilian operations earlier in the week.
Of the full licenses granted by the SPA, A2FBR LTDA received two licenses to operate six betting brands in Brazil, one for every three skins.
Brazil’s Betting Regulation Aims to Address Existing Issues
The path to regulation in Brazil has been far from smooth, with significant delays in legislative approval leading to criticism of the sector during the third and fourth quarters of 2024.
Regis Dudena, head of the SPA, believes that Brazil can now work to ensure a safe environment for bettors, now that the market is fully regulated.
“The country is taking a fundamental step to address the potential problems associated with the sector,” Dudena said regarding the January 1st launch.
“The conclusion of the regulation and the completion of the first round of authorizations place fixed-odds betting offered throughout the country under state control.
“We will start 2025 with strict and clear rules, as well as mechanisms to demand their compliance, and operators [will be] held accountable.”
A Significant Opportunity Awaits Operators
Local operator KTO was among the 14 companies to receive a full license, and founder and CEO Andreas Bardun commented on LinkedIn that he is “thrilled” with the outcome of his team’s hard work.
“From the beginning, 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 that the journey was far from over until full approval was guaranteed.
“This achievement reflects the hard work and dedication of our team, and we are excited to bring a fully licensed and trusted experience to our customers in Brazil.”
Big Brazil, associated with Caesars Sportsbook, received a provisional license pending final approval.
Big Brazil CEO André Feldman stated that he hopes to leverage Caesars’ extensive experience in global entertainment to attract bettors responsibly.
“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 an industry giant, with a robust structure.
“We fought for regulation in Brazil, and the brand is committed to acting in the most transparent and responsible way possible to offer our users the best Vegas experience in Brazil.”
In 2024, the SPA established its betting regulations through several 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 sites are licensed and which are not.
Bettors will need to register with facial recognition to restrict underage betting, while monetary transfers can only be made to and from accounts authorized by the Central Bank of Brazil. Betting with credit and cryptocurrencies is prohibited.
Operators will pay a rate of 12% of gross gaming revenue (GGR), and other taxes will raise the total effective rate to around 36%, according to the National Association of Games and Lotteries (ANJL). In addition, there will be a 15% tax on player winnings exceeding R$ 2,824.
The ANJL believes that the now-active regulations will be effective in combating the illegal market and should prevent the negative stigma against betting from growing.
“With the disclosure and enforcement of the rules, the 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 licenses as “sensible and fair.” This allows certifying entities to meet the demand for authorization over a longer period.
“The measure is essential for the continued operation of dozens of serious betting companies that, if suspended, would certainly lose a good part of their customer base to the illegal market,” the body concluded.
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