All About Brazil’s Gambling Market: How the Country Redefined Its Industry and Became a Top Target for Global Operators

Brazil is going through a profound legal transformation in the field of gambling. Indeed, the enactment of Law 14,790/2023 marked a turning point by establishing the legal framework for sports betting and online casinos, formalizing an activity that for years operated in the quicksand of an ambiguous terrain.

Since January 2025, the market has been operating under the supervision of the Secretariat of Prizes and Betting (SPA), under the Ministry of Finance, consolidating a federal model of control, licenses and supervision.

Looking Back

The current turn takes on greater dimension if it is analyzed in historical perspective. It can be said that before 1941, Brazil had a vibrant casino culture and gambling was a widespread form of entertainment. However, the approval of the Criminal Contraventions Law of 1941 prohibited all forms of gambling as explained in this indispensable article by Altenar.

The policy deepened in 1946 under the presidency of Eurico Gaspar Dutra, who decreed the total prohibition of casinos throughout the country, in a context of strong moral and social concerns. The measure involved the revocation of permits and the massive closure of establishments.

For decades, poker remained one of the few exceptions, being considered a game of skill and not strictly of chance. At the same time, social interest in gambling never disappeared.

Gradual liberalisation and digital pressure

It was only in 1971 that a process of partial opening began with the legalization of the Federal Lottery, followed by the authorization of non-commercial bingo and horse racing.

The emergence of online gambling, which began to expand internationally towards the end of the 20th century, increased the pressure on the Brazilian state. Although the legislation prohibited the internal operation of gambling, it did not prevent platforms based abroad from attracting Brazilian users, especially in a country with a strong sports culture.

For more than eight decades, the sector remained largely unregulated. That situation began to change in 2023, when the Chamber of Deputies approved the project that would lead to Law 14,790/2023, sanctioned on December 30 of that year and converted into the new regulatory pillar of the market.

The new regulated scheme

With full entry into force in January 2025, Brazil moved to a formal licensing system for fixed-odds sports betting and online casinos. As explained in detail in this note from SoloAzar.

Companies must pay a license of 30 million reais for five years, pay 18% tax on the Gross Gaming Revenue (GGR) and face monthly inspection fees that can reach 2 million reais.

The regulation also introduced strict controls:

Mandatory use of the CPF and identity verification with facial biometrics.

Prohibition of payments with credit cards, bank tickets and cryptocurrencies.

Centralized transactions through Pix through institutions authorized by the Central Bank.

Mandatory responsible gambling tools, such as deposit limits and self-exclusion mechanisms.

From 2025, the framework also covers online modalities linked to traditional games, including the "jogo do bicho" in digital format.

The Pending Debate on Land-Based Casinos and Traditional Gaming

While the online market already operates under clear rules, Congress continues to discuss the legalization of land-based casinos and other traditional gambling.

Among the projects under analysis are PL 4.495/2020 and PL 442/91, which seek to authorize casinos in hotels, ships and integrated resorts, in addition to regulating activities such as bingo and "jogo do bicho" in a face-to-face format.

If approved, these initiatives would complete the opening process initiated with Law 14,790/2023, configuring a comprehensive model that combines regulated online gambling and controlled physical offer

In conclusion, it can be said that with the regulation of online matters and the imminent legalization of land-based casinos, undoubtedly for national and international operators, the new scenario represents both opportunities and challenges: understanding regulatory evolution and anticipating future regulatory updates will be key in the most attractive and challenging market in Latin America.