Brazil Gambling Regulation - April 2024 Update

As a recap of the situation in Brazil, Law No. 14.790/2023, that entered into effect on December 29, 2023, legalized fixed-odds betting on real sporting events, virtual online gaming events, and online casino games.

The Ministry of Finance was tasked with regulating the industry, with no set limit on operator licenses, each valid for five years at a fixed fee of R$30 million.

Only Brazilian-incorporated entities with at least 20% Brazilian ownership are eligible. Operators have a six-month transition period to comply with regulations.

Operators retain 88% of gross revenue, subject to taxes including federal social security taxes and local municipality fees. Monthly regulatory fees range from R$54,419 to R$1.9 million based on revenue.

After the publishing of the law, Regulations will need to be released that will cover advertising, integrity monitoring, payments, and responsible gaming, with strict prohibitions on offering incentives for betting.

Update of April 2024

The Brazilian Ministry of Finance, through Ordinance No. 561/2024 issued on April 10, 2024, delineates a four-phase timeline for the release of regulations pertaining to online fixed-odds betting. Each phase, classified by priority, has specific deadlines:

1. Phase 1 (April 2024)

2. Phase 2 (May 2024)

3. Phase 3 (June 2024)

4. Phase 4 (July 2024)

The implementation will involve the announcement of 11 ordinances across these phases.

Application window for new licenses is expected to open in September 2024

Want to know more about how to secure your license in Brazil?

Contact us at info@compliancecommittee.com