Brazil’s laws about online sports betting is one of the largest newly regulated marketplaces in the world. The government passed Law No. 14790/2023, setting up a complete federal system for fixed-odds betting after years of arguing in Congress. This formally started a new era of legal licensed sports betting, putting an end on the years of dependence on an often-unregulated offshore industry. This was a substantial change in policy.
The New Rules for Business
Licensing and Supervision
The new system’s main feature is that the federal government must issue licenses and keep an eye on things. This is done by the Ministry of Finance’s Secretariat of Prizes and Bets (SPA). To get permission, operators must have a presence in Brazil and meet high standards for technical integrity and finances. For a five-year license, the law mandates a large grant fee and strict rules, such as required face recognition for identity verification, which shows a strong commitment to protecting consumers.
Taxation and Compliance
The rule sets up a special tax system in which operators pay 12% on Gross Gaming Revenue (GGR) as well as other business taxes. The regulation also sets tight restrictions for anti-money laundering (AML) protocols and compels operators to put in place responsible gaming safeguards like deposit limitations and self-exclusion tools. The goal of this organized regulatory environment is to fight the widespread unlawful market that has been stealing potential tax income for a long time.
Final Thoughts
Brazil has effectively changed its sports betting business from a gray market to a fully regulated one that puts a lot of emphasis on honesty, safety for customers, and making money. The legal framework is already in place, which will make this one of the most active and highly watched betting markets in the world.