The editorial team at iGN, in collaboration with experts from 4H Agency, has prepared a comprehensive analysis of Brazil's licensing model for online gambling, which includes both casinos and betting regulated through a federal fixed-odds betting license.
Individual states maintain independent powers to regulate the sector, with state lotteries in operation, horse racing regulated, and the legalization of land-based casinos still under consideration.
Federal License Details:
- Duration: 5 years, covering up to 3 domains/brands; each additional domain incurs the same fee.
- License cost: $5.5 million
- Mandatory financial reserve: $930,000
- Minimum share capital: $5.5 million
Applicant Requirements:
- Only companies registered in Brazil (including subsidiaries of foreign groups) with an office in the country.
- Companies must be registered as Ltda or S.A., with at least 20% of share capital owned by Brazilian investors.
- Corporate and tax documents (CNPJ), disclosure of beneficiaries, proof of no debts, good standing of participants, and legal source of funds are required.
- Mandatory AMLCFT policies, responsible gaming, data protection, and customer support; at least one participant must have a minimum of 3 years of industry experience.
- Annual liquidity management policy, monitoring of intraday risks, crisis plan, and storage of all supporting documents.
- Access restrictions for minors, employees, officials, and athletes; prohibition of deceptive design elements; mandatory player control tools (limits, pauses, blocks, self-exclusion) with monitoring for signs of gambling addiction.
Technical Requirements:
- Servers, betting systems, and data centers must be located only in Brazil.
- Betting systems can be hosted abroad only in countries with international legal assistance agreements.
- ISO 27001 certification is required, along with mandatory certification of all systems by regulator-approved organizations throughout the license's duration.
- Minimum RTP: 85%
Taxation:
- 13% on GGR
- 15% on player winnings
Market Features:
- An unstable regulatory environment with political pressure and ongoing tax disputes; federal licensing overlaps with state regulations, creating legal fragmentation.
- The offshore segment dominates, with domain blocking being ineffective; licensed operators are losing competitive positions.
- Low LTV and a high proportion of bonus-oriented audiences increase marketing costs and drive players to offshore platforms.
- The GGR tax will increase from 13% in 2026 to 14% in 2027 and 15% in 2028, with discussions on back taxes for previous periods.
- Only personal bank accounts and PIX are allowed; offshore banking operations are actively blocked.
- Even large international operators face licensing refusals or exit the market.
- The SIGAP system remains a significant compliance challenge due to high loads, complex integration, and regulatory risks during technical failures.
According to 4H, the Brazilian license combines high entry barriers ($5.5 million license and $5.5 million share capital) with strict localization and fragmented regulation. The mandatory share of Brazilian investors and the requirement for servers to be located in the country complicate entry for foreign operators.