Brazil iGaming Regulation: What Operators and Affiliates Need to Know

For years, Brazil’s online betting market operated in a legal gray area. Millions of players were placing bets on international iGaming platforms, but there were no clear rules to regulate operators, protect players, or monitor the market.

This changed on January 1, 2025.

With the implementation of Law No. 14,790/2023, Brazil officially launched its regulated iGaming market. The new law introduced clear rules for operators, affiliates, payment providers, and marketing partners.

The main goal of the regulation is to create a transparent and secure betting environment. It also introduces strict compliance requirements that iGaming companies must follow.

Under the new framework, operators must obtain a license, follow tax policies, implement KYC procedures, and comply with advertising regulations.

In this guide, you will learn the key things operators and affiliates need to know about Brazil’s iGaming regulation, including licensing, taxes, and marketing rules.

Understanding the Brazil iGaming Regulation Framework

The Brazilian iGaming regulation was implemented through Law No. 14,790/2023, which is also known as the Brazil Bets Law

This law regulates fixed-odds betting, which includes:

• Online sports betting
• Virtual betting games
• Certain online casino-style betting activities

The regulatory authority responsible for overseeing the industry is the Secretariat of Prizes and Bets (SPA) under Brazil’s Ministry of Finance.

The goal of the Brazil iGaming Regulation is to:

• Create a legal and transparent betting market
• Protect consumers
• Prevent illegal gambling activities
• Generate tax revenue for the public sectors
• Improve monitoring and reporting across the betting ecosystem

Before this regulation, many operators served Brazilian players using offshore licenses. Now, iGaming brands must follow Brazil’s local laws and obtain approval from Brazilian authorities to operate legally.

Licensing Requirements Under Brazilian iGaming Regulation

One of the most important elements of the Brazil iGaming Regulation is the licensing framework.

Operators cannot legally offer betting services to Brazilian users without receiving authorization from the Secretariat of Prizes and Bets (SPA), the regulatory authority under Brazil’s Ministry of Finance.

The regulation introduces strict requirements related to licensing fees, ownership structure, technical standards, and compliance procedures. These rules are designed to ensure transparency, protect players, and create a regulated betting environment.

Below are the key licensing requirements operators must follow.

1. Licensing Cost and Duration

To legally operate under the Brazil iGaming Regulation, companies must obtain an official betting license.

The licensing structure includes the following requirements:

• License Fee: BRL 30 million (approximately USD 6 million)
• License Validity: 5 years
• Brand Coverage: One license allows operators to run up to three betting brands or domains

This structure allows operators to manage multiple brands under a single regulatory approval, which can help companies expand their market presence while remaining compliant with the law.

However, operators must maintain full regulatory compliance throughout the license period to continue operating in the Brazilian market.

2. Local Ownership Requirement

Another key requirement introduced under the Brazil iGaming Regulation is the local ownership rule.

Operators must establish a legal entity registered in Brazil in order to apply for a betting license.

In addition, at least 20% of the company’s share capital must be owned by a Brazilian citizen or a Brazilian company.

This requirement ensures that the government maintains better oversight of operators and helps strengthen regulatory accountability within the local market.

3. Technical and Operational Requirements

Beyond licensing and ownership rules, the Brazil iGaming Regulation also requires operators to meet strict technical and operational standards.

These measures are designed to ensure platform security, protect user data, and maintain transparency in betting operations.

4. Domain Requirements

All licensed betting websites must operate under the .bet.br domain extension.

Websites using other domains, such as .com or .net, may be blocked by Brazilian regulators if they target Brazilian users without proper authorization.

Using the official domain extension helps regulators identify licensed operators and prevent illegal betting platforms from operating in the market.

5. Data Hosting Requirements

The regulation also requires operators to maintain secure infrastructure for betting systems.

All betting platforms must host their systems and user data in ISO 27001-certified data centers located in Brazil.

In certain cases, international hosting may be permitted if formal cooperation agreements exist between jurisdictions. However, local hosting is generally preferred because it allows regulators to monitor transactions and ensure compliance more effectively.

6. Player Verification and KYC Requirements

The Brazil iGaming Regulation places strong emphasis on Know Your Customer (KYC) procedures.

Operators must verify user identities before allowing them to participate in betting activities.

The verification process includes:

• Facial biometric verification
• CPF validation (Brazilian taxpayer identification number)

These verification measures help prevent:

• Identity fraud
• Money laundering
• Underage gambling

By implementing strict verification systems, regulators aim to create a safer and more transparent betting environment.

Financial and Tax Obligations for Operators

In addition to licensing and operational rules, the Brazil iGaming Regulation introduces a clear taxation framework for betting companies.

These financial rules are designed to generate public revenue while maintaining transparency within the regulated betting ecosystem.

1. Gross Gaming Revenue (GGR) Tax

Operators are required to pay tax on Gross Gaming Revenue (GGR), which represents the revenue remaining after player winnings are paid out.

The current tax rate is 12% of GGR.

However, the government plans to gradually increase this rate over time:

• 13% starting in April 2026
• 15% by 2028

The revenue collected from betting taxes will be distributed across several public sectors, including:

• Sports development
• Education
• Tourism
• Public safety

This allocation helps the government support social initiatives while regulating the betting industry.

2. Payment Method Restrictions

The Brazil iGaming Regulation also limits the types of payment methods that betting platforms can offer.

Approved payment options include:

• Pix (Brazil’s instant payment system)
• Debit cards
• Bank transfers (TED)

However, some payment methods are currently prohibited, including:

• Credit cards
• Cryptocurrencies

These restrictions aim to reduce financial risks and promote responsible gambling practices.

3. Financial Reserve Requirement

Operators must also maintain a minimum financial reserve of BRL 5 million.

This reserve acts as a financial safeguard to ensure that betting companies can always pay player winnings, even during financial disruptions or operational challenges.

Maintaining this reserve helps build trust in the regulated betting market and ensures financial stability within the industry.

What Affiliates Need to Know About Brazil iGaming Regulation

Affiliates play a major role in the iGaming ecosystem, and the Brazilian iGaming Regulation also affects how affiliate marketing works in the country.

Although affiliates do not require a separate license, their activities are strictly regulated through the operators they promote.

1. Promoting Licensed Operators Only

Affiliates can only promote betting platforms that are officially authorized by the SPA.

Promoting unlicensed operators can lead to:

• Website blocking
• Financial penalties
• Partnership termination

This rule encourages affiliates to work only with legitimate and compliant operators.

2. Responsible Advertising Rules

The Brazil iGaming Regulation requires responsible advertising in all betting promotions.

Every advertisement must include:

• 18+ warning labels
• Clear gambling risk disclaimers

These messages must occupy at least 10% of the advertisement space.

3. Advertising Restrictions

Affiliates cannot promote betting services in places where minors are likely to be exposed.

This includes advertising:

• Near schools or universities
• On platforms primarily used by minors

These rules help prevent underage exposure to gambling promotions.

4. Content Restrictions

Another important rule under the Brazil iGaming Regulation is how betting can be presented in marketing content.

Affiliates cannot promote gambling as:

• A guaranteed way to make money
• A replacement for employment
• A path to financial success

Marketing messages must remain transparent and responsible.

What Are the Penalties for Violating Brazil iGaming Regulation?

The Brazil iGaming Regulation includes strict enforcement rules to ensure that operators and affiliates follow the law.

Brazil’s regulatory authorities have strong powers to monitor betting activities and take action against companies that do not comply with the rules.

If an operator or affiliate violates the regulations, they may face serious consequences, including large fines, website blocking, and payment restrictions.

1. Financial Penalties

Companies that do not follow the rules can face very large fines.

Under the Brazil iGaming Regulation, penalties can go up to BRL 2 billion for each violation, depending on how serious the issue is.

These fines are meant to stop illegal activities and make sure operators follow the required regulations.

2. Domain Blocking

Regulators also have the power to block illegal betting websites.

Brazil’s telecom regulator, Anatel, can block unauthorized platforms at the DNS level.

Once a website is blocked, users in Brazil will no longer be able to access it.This helps prevent illegal betting operators from targeting Brazilian players.

3. Payment Blocking

Another enforcement action involves restricting payments.

The Central Bank of Brazil can ask banks and payment providers to stop processing transactions for unauthorized betting platforms.

Without access to payment services, illegal operators cannot easily accept deposits or process withdrawals, making it very difficult for them to continue operating.

How Affiliate Platforms Support Compliance

As regulations become stricter, operators need better tools to manage affiliates, monitor campaigns, and maintain transparency.

Affiliate platforms help companies:

• Track affiliate traffic and conversions
• Monitor promotional activities
• Generate accurate performance reports
• Ensure marketing compliance

By using advanced affiliate tracking platforms, operators can maintain transparency, compliance, and efficient campaign management in regulated markets like Brazil.

Final Thoughts

The launch of the regulated betting market marks a major milestone for the industry.

The Brazil iGaming Regulation has transformed the market from an unregulated environment into a structured and transparent ecosystem.

However, this opportunity also comes with responsibility.

Operators must obtain licenses, implement strong verification systems, follow strict taxation rules, and ensure responsible advertising practices. Affiliates must also adapt to new marketing guidelines and promote only licensed platforms.

For companies willing to follow these rules, Brazil offers one of the most promising betting markets in the world.

Understanding the Brazil iGaming Regulation is the first step toward entering and succeeding in this rapidly evolving market.

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