Understanding Brazil’s Gaming License Requirements
As of January 1, 2025, Brazil has implemented a regulated framework for online gambling and sports book betting. To operate legally, companies must obtain authorization from the Ministry of Finance’s Secretariat of Prizes and Bets (SPA/MF). Key requirements include:
- Incorporation: The applicant company must be established in Brazil.
- Ownership: At least 20% of the company’s share capital must be held by a Brazilian shareholder, either an individual or another company.
- Financial Standing: The company must demonstrate a minimum share capital and net worth of BRL 30 million.
- Guarantee: A financial guarantee of BRL 5 million is required.
- Compliance Documentation: Applicants must provide tax compliance certificates, financial statements, system security protocols, and plans detailing responsible gaming and anti-money laundering (AML) measures.
These stringent criteria ensure that only financially stable and compliant operators enter the Brazilian market.
Cost and Fees Associated with the Brazilian Gaming License
Securing a gaming license in Brazil involves significant financial commitments:
- License Fee: A non-refundable fee of BRL 30 million (approximately USD 6 million) is required for a five-year authorization. This fee permits the operation of up to three commercial brands or websites. For each additional set of up to three brands, an additional BRL 30 million is payable.
- Gross Gaming Revenue (GGR) Tax: Operators are subject to a 12% tax on their GGR, in addition to standard corporate taxes.
- Player Winnings Tax: Winnings exceeding R$2,824 are taxed at 15%.
These financial obligations are designed to ensure that operators contribute to public welfare programs and maintain the integrity of the gaming industry in Brazil.
Application Process for a Brazilian Gaming License
The application process is thorough and involves several steps:
- Submission: Applicants must submit a comprehensive request to the SPA/MF, including all required documentation demonstrating legal standing, tax and labor compliance, good reputation, and financial and technical qualifications.
- Review: The SPA/MF reviews applications within 150 days of submission.
- Payment: Upon approval, the license fee must be paid within 30 days using the Union Collection Guide (GRU).
- Approval: Once the payment is confirmed, the operator is authorized to commence operations.
It’s important to note that only companies that had submitted their authorization requests by September 17, 2024, were allowed to continue operations during the transition period, which ended on December 31, 2024. From January 1, 2025, only authorized companies are permitted to operate in Brazil.
