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Betting Law Enacted in Brazil: Overview of Key Rules

On 30 December 2023, President Lula, with certain vetoes, enacted the Betting Law (Law nr. 14,790/23). This Law represents the final legal framework before the Ministry of Finance (“Regulator”) effectively regulates the fixed-odds betting market. Consequently, the regulatory structure for this market will be based on the following normative provisions:


  • The scope of the Betting Law has been expanded to reinclude online games. As a result, licensed operators will be allowed to offer fixed-odds bets on both “real sports-themed events” and “virtual online gaming events.”
  • Authorization to operate fixed-odds betting will be exclusively available to entities established in Brazil.
  • Operators will be required to implement various internal control policies. These include, but are not limited to, (i) customer service and ombudsman services, (ii) KYC, AML, and anti-terrorism financing mechanisms, (iii) responsible gaming measures, (iv) prevention of pathological gaming disorders, and (v) ensuring betting integrity and prevention of result manipulation, among other regulations stipulated by the Ministry of Finance.
  • The authorization fee has been capped at a maximum of R$ 30 million (thirty million Brazilian reais), applicable to up to three commercial brands (URLs) for a period of up to five years.
  • Operators may offer fixed-odds bets on sports-themed events both online and in physical locations, either separately or in combination. This offering is subject to the authorization of the Regulator, which will evaluate each case individually for grant application. However, online games will be limited to digital platforms, with no availability in physical environments.
  • Marketing activities must adhere to the regulations set by the Ministry of Finance, which advocates for self-regulation. This includes the requirement for notices discouraging gambling and warnings about its potential harm. Additionally, operators must develop a code of conduct and promote good marketing practices. It is prohibited for operators, as well as their subsidiaries and parent companies, to acquire, license, or finance rights to Brazilian sports events for broadcasting or distribution purposes.
  • Betting operators will be obliged to join a national or international sports integrity monitoring organization.
  • Unauthorized betting operators will be prohibited from conducting marketing activities in Brazil. The Law mandates the removal of such promotions by internet application providers, within existing technical constraints. It also requires internet service providers to block websites offering unauthorized fixed-odds bets, following notification from the Regulator. Furthermore, payment and financial institutions are barred from facilitating transactions with these platforms.
  • Betting operators must establish systems to track and monitor bettors’ activities to identify potential harms associated with betting.
  • A taxation rate of 12% on Gross Gaming Revenue (GGR) is imposed on betting operators. However, this will not be the only tax burden imposed on operators.
  • Bettors’ net winnings are subject to a 15% Personal Income Tax (IRPF). Previously, Article 31 of the proposed Bill of Law had defined the concept of net winnings, proposed tax exemption for annual prizes below the first Personal Income Tax (IRPF) bracket and suggested annual income tax calculation with payment due by the last business day of the following month. However, these provisions were vetoed by the President.
  • Betting operators must mandatorily have at least one Brazilian partner who owns a minimum of 20% of the share capital. Partners or controlling shareholders are forbidden from having stakes in Football Joint-Stock Companies (SAFs), professional sports organizations, or acting as directors of Brazilian sports teams.
  • According to Article 29 of the law, it is prohibited for betting operators to offer any form of bonus or prior advantage, even if intended for promotional, advertising, or propaganda purposes, for placing a bet.
  • Article 35-A clarifies the territorial limits for fixed-odds bets offered by member-states and the Federal District, as well as their respective authorization processes for betting operators. This activity is authorized exclusively within the territorial boundaries of each State or the Federal District, with each operator or economic group limited to one authorization in only one State or Federal District.


Besides the vetoes concerning bettors’ taxation, the President also vetoed Articles 53, 55, and 56. These articles pertained to the rules for authorizing commercial promotions and the procedures for filing complaints, conducting investigations, and accounting related to prize distribution and lotteries with values not exceeding R$ 10,000 (ten thousand Brazilian reais).


In a forthcoming regulatory act to be issued by the Regulator, betting operators will be required to comply with specific technological and cybersecurity standards, including the need for nationally or internationally recognized certification. They must also meet certain legal and financial criteria. The Regulator will further outline conditions and deadlines, not less than six months, for active betting operators to align with the provisions of this Law and the specified regulatory rules.


Our legal team at Bichara and Motta Advogados are attentively monitoring the regulation of the betting industry in Brazil, offering legal advice to multiple market participants.


For further information, please visit: www.bicharaemotta.com.br.