Brazil

Gambling License

Brazil reopened its gambling market on January 1, 2025, after a 77-year ban, creating a highly regulated and lucrative opportunity for operators. The Ministry of Finance oversees the licensing process, which includes strict requirements for financial stability, technical compliance, and player protection. Key points:

• License Types: B2C (for operators serving players) and B2B (for technical providers).

• Costs: R$30 million license fee, 12.5% GGR tax, and R$5 million reserve.

• Regulations: Local presence required, 20% Brazilian ownership, Portuguese support, AML protocols, and certified platforms.

• Timeline: 8–12 months for approval; licenses valid for 5 years.

• Renewal: Requires updated financials, compliance evidence, and technical certifications.

Brazil’s market offers access to 200 million people, with 67% online, but demands high upfront costs and compliance efforts. Ready to apply? Keep reading for a step-by-step guide.

Brazil Gambling License Basics

License Categories

Brazil has two main types of gambling licenses: B2C and B2B. The B2C license is for companies offering direct services to players. To qualify, operators must provide player protection tools, offer Portuguese-language support, and maintain a local presence. On the other hand, the B2B license is for businesses supplying technical infrastructure. This license emphasizes platform certification, data security, and regulatory compliance. Together, these licenses aim to ensure a regulated and fair gambling market.

Government Oversight

The gambling industry in Brazil is regulated by the Ministry of Finance's Secretariat of Evaluation, Planning, Energy, and Lottery (SECAP). SECAP is responsible for licensing, compliance monitoring, certification, and setting technical standards ^[4]. Another key body, the Prizes and Betting Secretariat (SPA), has already issued 15 definitive licenses and 66 provisional authorizations ^[4]. These regulatory bodies work within a legal system formally established in 2025, ensuring the industry operates smoothly and transparently.

Current Laws

Brazil’s gambling regulations, which came into effect in January 2025, mark a major shift after a 77-year ban. The framework includes several key rules:

• A 12.5% tax on gross gambling revenue.

• Operators must have a local presence, with at least 20% Brazilian ownership.

• Strict anti-money laundering measures are mandatory.

• Platforms must undergo certification by independent laboratories ^[3].

These regulations provide the foundation for running a compliant gambling business in Brazil. In the next section, we’ll dive deeper into the licensing process.

License Requirements

Company Setup Rules

Foreign operators looking to enter the Brazilian market must establish a subsidiary in Brazil. This includes setting up a registered office, appointing local legal representatives, and completing all necessary corporate and tax registrations. Additionally, at least 20% of the company’s shares must be owned by Brazilian stakeholders, ensuring alignment with local economic interests and regulatory standards.

Financial and Technical Standards

Securing a license in Brazil comes with steep financial obligations. Operators are required to pay an initial license fee of R$30 million, maintain R$5 million in reserves, and ensure their servers are located either in Brazil or in approved jurisdictions. Platforms must also pass certification by independent labs ^[6].

Beyond financial commitments, operators must meet high technical standards to ensure compliance and secure operations. These include:

• Advanced encryption to protect user data

• Real-time fraud detection systems

• Automated financial reporting tools

• Payment processing systems that adhere to local banking regulations ^[6]

Player Protection Rules

Operators must prioritize player safety and support. This involves offering 24/7 Portuguese-language customer service, implementing self-exclusion programs, setting deposit limits, and using facial recognition technology for identity checks. Real-time monitoring systems are also required to identify and address problem gambling behaviors ^[3][6].

Strict Know Your Customer (KYC) protocols are another key requirement. These include verifying player identities and monitoring transactions to combat fraud and money laundering. According to SECAP, these measures have been successfully adopted by all 15 definitive license holders and 66 provisional authorization holders ^[4].

Once these prerequisites are met, operators can move forward with the application process, which will be detailed step by step in the following section.

Pros and Cons

Getting a Brazil gambling license offers operators some big opportunities, but it also comes with challenges. These factors are key in deciding if entering the Brazilian market fits an operator's plans.

Side-by-Side Comparison

Being licensed boosts an operator’s reputation, showing potential players and partners that they’re trustworthy. While the financial and technical requirements are demanding, they help create a more stable and reliable gambling market.

Even with the hurdles, recent entrants show that the benefits can outweigh the costs. The Ministry of Finance’s clear guidelines make the process more manageable. For operators looking to tap into Brazil’s regulated gambling market, knowing the application process inside out is essential.

How to Apply

Getting a Brazil gambling license involves a detailed process that demands thorough preparation. This process is overseen by the Secretariat of Evaluation, Planning, Energy, and Lottery (SECAP) to ensure transparency and security in the gambling market.

Preparing Your Application

Before you begin, make sure you meet the corporate, financial, and technical requirements outlined in the 'License Requirements' section. You'll need to provide the following documents to SECAP:

• Proof of your corporate structure

• Evidence of financial capacity

• Documentation showing technical compliance

• Anti-Money Laundering (AML) and compliance protocols

Application Review and Certification

The entire process usually takes 8–12 months and is divided into two key phases:

1. SECAP Review (150 days)
   During this phase, you’ll need to:

   • Respond quickly to SECAP’s requests

   • Address any compliance issues

   • Stay in regular communication with regulators

2. Technical Certification
   Independent labs will certify your systems for:

   • Security

   • Game fairness

   • Payment processing

   • Player protection

Completing the Process

Once SECAP approves your application, there are a few final steps to complete:

• Pay the R$30 million license fee within 30 days

• Set up R$5 million in reserves

• Pass a final compliance check

So far, the Ministry of Finance has authorized 81 operators, with 15 granted licenses valid until 2029 ^[4]. If your application is denied, you can reapply during future review periods, making solid preparation key to success.

After obtaining your license, familiarize yourself with the renewal process to ensure compliance and avoid disruptions.

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License Renewal

In Brazil, gambling licenses are valid for 5 years, with current definitive licenses running until 2029 ^[4]. Knowing how to navigate the renewal process is key to avoiding interruptions in operations within the country’s gambling market.

The renewal process is managed by SECAP, which requires operators to prove they are still meeting all regulations. Key requirements include:

• Submission of updated financial statements to confirm stability

• Valid gaming system certifications

• Evidence of compliance with AML (Anti-Money Laundering) regulations

• Proof of responsible gaming practices in place

Key Timeline Points

It’s recommended to begin the renewal process at least 6 months before the license expires. This timeline provides enough room to resolve any regulatory issues and ensures operations can continue seamlessly.

Financial Requirements

Operators must show they remain financially sound by:

• Maintaining the required R$5 million reserve

• Adhering to the 12.5% gross revenue tax obligations ^[4]

• Submitting up-to-date audit reports

Technical Compliance

SECAP also reviews technical aspects, including:

• Security system updates and protocols

• Payment processing systems

• Measures to protect players

Special Rules for Provisional License Holders

Provisional license holders transitioning to definitive licenses face additional steps during renewal. They must submit a complete documentation package and meet all definitive license requirements within 30 days ^[4]. Out of the 81 authorized operators in Brazil, 66 currently hold provisional licenses ^[4].

Expert Advice

Engaging regularly with regulators can help streamline the renewal process. SECAP, under the Ministry of Finance, enforces strict standards to ensure operators continue complying with Brazil’s gambling regulations.

Once your license is renewed, staying aligned with Brazil’s gambling laws becomes essential for long-term success.

Brazil's Gambling Laws

In 2023, Brazil revamped its gambling regulations, introducing clear rules for operators. The Ministry of Finance now oversees these laws, aiming to create a balanced gambling market that prioritizes responsibility and player safety while supporting long-term growth.

Laws and Safety Rules

Brazilian gambling laws focus on three main areas:

Operational Compliance

• Financial transactions must go through accounts authorized by the Central Bank of Brazil.

• Strict anti-money laundering (AML) protocols are required.

• Cybersecurity systems are essential to safeguard data and prevent fraud ^[3].

Player Protection

• Operators must use facial recognition for identity verification.

• Self-exclusion tools and spending limits are mandatory.

• Real-time systems monitor for signs of problem gambling ^[3].

Technical Standards

• Regular financial audits ensure transparency.

• Data protection measures are enforced.

• Fraud detection systems must be in place.

Marketing Rules

To protect vulnerable groups, Brazil enforces strict advertising regulations for gambling operators. These include:

Enforcement

The National Association of Games and Lotteries (ANJL) is responsible for ensuring compliance. Operators who violate these rules face penalties such as fines, license suspensions, or even legal action. This regulatory framework has already led to a rise in compliant operators, contributing to a more reliable gambling market ^[3].

With these regulations, Brazil aims to protect players while maintaining a stable environment for operators. However, businesses entering this market must account for the costs and effort required to stay compliant.

Fees and Time Frames

All Costs

Running a gambling business in Brazil involves a range of financial obligations. In addition to the application fee and reserve requirements, operators face several ongoing expenses:

These costs highlight Brazil's efforts to maintain a regulated and responsible gambling environment.

Processing Time

Securing a gambling license in Brazil typically takes 8-12 months. This timeline includes steps like document verification, technical certification, and final approval. The duration can vary depending on factors such as:

• How complete the initial application is

• The complexity of the operator's technical setup

• The speed of compliance checks

• How quickly operators respond to regulatory inquiries

The Ministry of Finance enforces strict standards during the process, ensuring all operators meet the required technical and financial criteria before granting licenses.

For businesses looking to enter Brazil's regulated gambling market, understanding these financial and procedural demands is essential for proper planning and compliance.