How to Get a Brazil Gaming License: A Comprehensive Guide

How to Get a Brazil Gaming License: A Comprehensive Guide

Summary

This guide explains what operators must do to secure a federal Brazil gambling licence and operate legally in the newly regulated market that launched on 1 January 2025. It covers the types of licences, the BRL30m concession fee for the main federal licence, the technical and ownership requirements, key compliance obligations (AML, KYC, CTF), permitted domains (.bet.br), payment restrictions and the typical application timeline via the SIGAP portal.

The article also outlines market context — fast growth in licensed operators, strong demand, market-size projections and the tax burden operators should expect.

Key Points

  1. The primary federal concession costs BRL 30 million for a five-year term and covers up to three brands (skins).
  2. Operators must be established in Brazil with at least 20% Brazilian capital and pass rigorous technical certification (eg ISO-27001 and third-party certifiers such as GLI).
  3. Mandatory controls include Anti‑Money Laundering (AML), strict Know Your Customer (KYC) checks and Counter‑Terrorism Financing (CTF) measures.
  4. Operators must use “.bet.br” domains; payments are limited to electronic transfers — credit cards and cryptocurrency payments are prohibited.
  5. Taxation: a 12% GGR tax (proposed increases possible), ~34% corporate taxes and additional levies — overall tax burden can approach 50%.
  6. Three licence types: Type 1 (Federal), Type 2 (Provisional — short-term, renewable), Type 3 (State/municipal licences like LOTERJ with lower fees but territorial limits).
  7. Applications are submitted via the SIGAP portal; SPA typically responds within 150 days and successful applicants have 30 days to pay the concession fee.
  8. Market potential is large: Brazil is a top source of gambling traffic and market growth projections put regulated GGR in the tens of billions over coming years, but high fees and taxes raise sustainability questions.

Content Summary

The piece opens with a short history of Brazil’s move from an 80‑year prohibition to a legalised online market, driven by Law No. 14,790/2023 and administered by the Secretariat of Prizes and Bets (SPA) within the Ministry of Finance. It summarises the SPA’s role in awarding federal licences and enforcing rules.

The article then details practical entry requirements: setting up a Brazilian entity with minimum local capital, compiling legal, fiscal and technical documentation, and completing certification for betting platforms and payment systems. It walks through the SIGAP application process, typical timelines (SPA up to 150 days, MESP up to 45 days), provisional licence usage and payment deadlines.

Costs and fiscal treatment are covered: a BRL 30m non-refundable fee for the federal licence, 12% GGR tax, corporate taxes and other contributions that can push effective taxation near 50%. A comparison between federal and state licences (eg LOTERJ’s BRL 5m option) is included, noting territorial restrictions and legal rulings limiting state licences outside their borders.

Finally, the guide assesses market opportunity and risks: Brazil’s deep sports culture and online penetration suggest very high GGR potential, but high entry costs, heavy taxation and competitive pressures could incentivise grey‑market activity if margins tighten.

Context and Relevance

Why this matters: Brazil has just opened one of the largest regulated betting markets in Latin America. For operators and investors, the regulatory framework sets both the pathway to access a massive player base and the constraints that will determine commercial viability. Compliance, certification and tax planning are central to any market entry strategy. The difference between federal and state pathways (cost, reach and regulatory risk) is particularly important when weighing investment decisions.

Author’s take

Punchy summary: getting into Brazil is a high-stakes game. The upside is huge — but so are upfront costs and ongoing taxes. If you’re serious about Brazil, treat this as a mission-critical operational project: legal set-up, technical certification and robust AML/KYC are non-negotiable.

Why should I read this?

Short and blunt: if you’re thinking about entering Brazil’s betting market, this saves you hours of digging. It tells you the real cost (BRL30m), the paperwork, who signs off (SPA via SIGAP), the compliance must-haves and the timeline. Handy whether you’re weighing a bid, planning sponsorships or checking tax exposure.

Source

Source: https://igamingbusiness.com/the-rulebook/brazil/how-to-get-brazil-gaming-license/