How to Start an Online Casino in Brazil

How to Start an Online Casino in Brazil | SOFTSWISS in Brazil is among the most popular topics in the industry today because, exactly at the moment, the history of Brazilian gambling is being created.

In 2023, President Lula da Silva enacted a turning point in Brazil's sports betting landscape by approving a new law that offers both online and land-based sports betting licenсes. The progress in this area builds upon the foundation laid in 2018 with the legalisation of sports betting under Law No. 13,756.

30 December 2023 is a milestone date in Brazil's gambling history. Namely, on this date, the President signed Bill 3.626/23 to officially become Law 14790. This law solidifies the legality of the sports betting and iGaming industries in the region.

President Lula's advocacy of these regulations reflects a strategic advancement. It presents a spectrum of opportunities for both local and international operators, ultimately contributing to the growth of the region's economy. As Brazil starts the implementation of these regulations from 1 January, 2025, its gambling sector is poised for a comprehensive and transformative evolution.

Given the positive landscape, let's dive deeper into the market, exploring the process of launching an online casino in Brazil and the crucial factors to bear in mind.

Is Online Gambling Legal in Brazil?

It took Brazil a number of decades to provide a clear and positive answer to this question, but now it's a legal 'yes'. As of today, sports betting and online gambling are officially authorised in Brazil.

What is Currently Known About Brazil's New Regulations?

All operators intending to operate in Brazil must apply for a 5-year licence at a cost of approximately 6 million euro. As for taxes, licensees are expected to pay a 12% charge on their Gross Gaming Revenue (GGR).

In order to obtain a licence, operators must establish a local presence. This includes the stipulation that a Brazilian national must hold at least a 20% ownership stake in the company.

A notable and perhaps unwelcome change is the introduction of a 15% tax on players' winnings.

To put it briefly, the new regulation marks a significant step for Brazil, aiming to make gambling safer, support social sectors, and attract investments. It's a positive change that has been anticipated globally for years, but the road to reach this point has been a convoluted one.

Let's have a closer look at the environment that has fostered the development of online gambling in Brazil.

In spite of Brazilians' cultural inclination to entertainment, the betting industry has faced a turbulent history. For the majority of the past 70 years, gambling has been illegal in the country, resulting in a halt to industry development. In 1946, a comprehensive ban took effect on all types of land-based gambling, which forced many establishments to close.

With the advent of the internet, it was generally accepted that iGaming was also subject to these restrictions. In recent years, Brazil has attempted to clarify the online gambling regulation and ban it officially several times.

How to Start an Online Casino in Brazil | SOFTSWISS

For a long time, the gambling landscape in Brazil was limited to specific forms. There were only two forms of gambling allowed in the country: state-run lotteries and horserace betting. Despite the restrictions and the centralised authority, the initiative was still a significant step towards providing legitimate alternatives for Brazilians.

How to Start an Online Casino in Brazil | SOFTSWISS

Over the last few years, the iGaming world has closely watched the development of Brazil's regulatory framework, as there are a number of positive trends. One of the major changes in Brazil's status quo was achieved in 2016 with the Brazilian Gaming Congress, which attracted many entities interested in exploring and investing in the sector.

Online gambling regulation in Brazil turned a corner in 2018, when the government introduced a law that would create a single framework and unify the fragmented online gambling sector. Due to the impact of COVID-19 and the upcoming 2022 presidential election, the progress of this legislation was postponed. Nevertheless, in 2023, the President endorsed the bill, which now awaits congressional approval to achieve full legal status.

Despite delays in the regulatory processes, the Brazilian government remained committed to providing clarity and actively regulating the gambling industry. This effort was driven, among other things, by the goal of stimulating economic development in the region. For example, in September 2022, Brazil implemented a new law requiring the introduction of temporary lotteries. The funds raised were designated for healthcare and tourism purposes.

In conclusion, Brazil's federal structure presents both benefits and drawbacks for the online gambling industry. The issue of legality, which has long been a point of uncertainty, now has a clear resolution. This lucidity provides a solid basis for the anticipated growth and flourishing of the online betting sector in the region, as predicted by experts for the upcoming years.

Brazil Online Gambling Market Overview

With a population of 214.3 million, a 77.87% internet penetration rate, and the historic love of local citizens for various games of chance, the Brazilian online gambling market has a lot to offer international operators.

As far as the market size is concerned, the outlook is more than just positive. According to Statista, Brazil's online gambling market will grow at a compound annual growth rate of 18.82% and reach EUR 3 billion by 2027. Their recent regulation establishment supports the prediction and promises even more explosive growth.

There are several social aspects that will assist iGaming operators in developing a solid grasp of today's gambling in Brazil. Simply put, Brazilians are among the most tolerant audiences for online gambling. Brazil's competitive nature, love for football, and desire to have fun explain why the market is so promising.