Gaming Law 2025 Comparisons

Brazil is the largest and most populated country in Latin America, with a total area of 3,265,080 square miles and a population of more than 213.4 million people (it is the fifth-largest country in the world in terms of size, and the seventh in terms of population). Brazil is a federation divided into 26 states, one federal district and 5,570 municipalities.

Almost all gambling activities have been prohibited in Brazil for over 75 years. In Brazil, gambling does not have a legal definition. Instead, Decree-Law No 3,688/1941 (the “Misdemeanours Law”), drafted with the intention of preserving social morality, provides in Article 50 for:

• the prohibition of “games of chance”, punishable with imprisonment for three months to one year; and
• a fine for those who establish or carry out games of chance in a public place or place accessible to the public, by means of the payment of an entry fee or otherwise.

There are three definitions of “game of chance”:

• a game in which the winnings and losses depend exclusively or mainly on chance;
• bets on horse racing outside a racetrack or where they are authorised; and
• bets on any other sporting competition.

Since the general ban on games of chance in 1941, the only legal gambling activities have been:

• lotteries under state monopoly; and
• horse race betting.

Recent Changes

After a gambling ban of more than 75 years, with a brief and failed attempt at the regulation of bingo in the 1990s, Brazil has recently seen considerable development in terms of gambling activities. Poker, although unregulated, is legal in Brazil, as it is considered a skill-based game. This understanding has been confirmed by several court decisions.

The opening of the Brazilian gambling market started with the creation of the virtual and land-based instant lottery (called LOTEX) by Law No 13,155/2015. Law No 13,756/2018 created fixed-odds sports betting as a lottery modality, granting powers for the Ministry of the Economy to regulate it and issue licences.

In October 2023, the Minister of Finance signed Normative Ordinance No 1,330/2023, establishing the general conditions for the commercial exploitation of fixed-odds lotteries, and regulating the general rules regarding this matter. In late December 2023, Law No 14,790/2023 was enacted, regulating fixed-odds lotteries and amending Law No 13,756/2018. According to Article 3 of Law No 14,790/2023, fixed-odds bets may involve:

• real events with a sports theme; or
• virtual events in online games.

In 2024, the Secretariat of Prizes and Betting of the Ministry of Finance (SPA), the entity empowered to regulate fixed-odds betting in Brazil, issued several ordinances as per Decree No 11,907/2024, including but not limited to:

• Ordinance SPA/MF No 615/2024, which establishes general rules for payment transactions in fixed-odds lottery betting;
• Ordinance SPA/MF No 722/2024, which establishes general rules for the functioning of betting systems and provision of data to the regulator in the operation of fixed-odds lotteries;
• Ordinance SPA/MF No 827/2024, which establishes the rules and conditions for obtaining authorisation for the commercial operation of fixed-odds lotteries by private economic agents throughout the national territory;
• Ordinance SPA/MF No 1,143/2024, which provides for policies, procedures and internal controls for the prevention of money laundering, terrorist financing and the proliferation of weapons of mass destruction (AML/CFT);
• Ordinance SPA/MF No 1,207/2024, which establishes technical requirements for the operation and certification of online games and live game studios falling under the fixed-odds lottery category;
• Ordinance SPA/MF No 1,231/2024, which establishes rules and guidelines for responsible gaming and communication and marketing actions, and which regulates the rights and duties of bettors and operators;
• Ordinance SPA/MF No 1,233/2024, which regulates the sanctioning regime within the scope of the commercial operation of fixed-odds lotteries; and
• Ordinance SPA/MF No 1,475/2024, which establishes the conditions for a company to participate in the transition to the new regulations for the operation of fixed-odds betting, and which sets the rules for the cessation of operations for companies that do not meet these conditions.

Since 2023, there have been significant discussions concerning the regulation of sports betting at the national, state and municipal levels. By October 2025, four states – Minas Gerais, Rio de Janeiro, Paraná and Maranhão – had commenced fixed-odds betting operations within their territories. Fixed-odds betting activities in the state of Paraíba are in the implementation phase. The operation of fixed-odds betting by municipalities is not expressly prohibited under Law No 13,756/2018, as amended by Law No 14,790/2023. Consequently, several municipalities have enacted local regulations authorising the operation of fixed-odds betting activities within their jurisdictions. This development led to the filing of the Claim of Noncompliance with a Fundamental Precept (Ação de Descumprimento de Preceito Fundamental (ADPF) No 1212) in March 2025, which challenges the constitutionality of municipal laws and decrees permitting fixed-odds betting at the local level. The case currently represents the most significant matter under review by the Brazilian Federal Supreme Court (Supremo Tribunal Federal; STF). Furthermore, various Brazilian authorities and institutions – including the SPA and the Office of the Attorney General (Advocacia-Geral da União; AGU) – have publicly opposed municipal legislation authorising the operation of lotteries, arguing that no legal provision expressly allows such initiatives.

Sports Betting

Online fixed-odds sports betting was legalised by Law No 13,756/2018, and is currently regulated by Law No 14,790/2023 and by the specific regulation issued by the SPA since 2024.

Horse Race Betting

Horse race betting is regulated by Law No 7,291/1984 and Decree No 96,993/1988. Horse-race wagering is restricted to non-profit entities that own the racetracks, and that are duly authorised by the Ministry of Agriculture, Livestock and Food Supply. These entities may operate betting websites focused on horse-racing content.

Bingo

Online bingo is prohibited in Brazil.

Casinos

Online casinos are considered “online games”, as described in Article 2, VIII and IX, of Law No 14,790/2023. As per Article 14, paragraph 2, fixed-odds bets that involve “online game events” may only be offered through virtual platforms.

Lotteries

The state-owned Caixa Econômica Federal currently runs the federal lottery and has recently launched a website to sell lottery tickets. All state-owned lotteries operating in Brazil are also authorised to offer their products online.

Poker

Poker has been recognised as a sport by the former Ministry of Sports, now the Secretariat of Sports, an agency of the Ministry of Citizenship. As a skill-based game, online poker is permitted. According to the sole paragraph of Article 3, I of Ordinance SPA/MF No 1,207/2024, skill-based games do not fall under the category of virtual events in online fixed-odds betting.

Fantasy Sports

Article 49 of Law 14,790/2023 expressly states that the development or provision of services related to fantasy sports does not constitute the operation of a lottery modality, commercial promotion or fixed-odds betting, and is exempt from requiring public authorisation.

Certain provisions of Law No 14,790/2023 are, however, applicable to fantasy sports, such as Article 31 regarding the taxation of net prizes obtained by bettors from fixed-odds lotteries, which are subject to individual income tax (imposto de renda da pessoa física; IRPF) at a rate of 15%. The sole paragraph of Article 3 of Ordinance SPA/MF 1,207/2024 stipulates that fantasy sports do not fall under the category of virtual events in online fixed-odds betting.

Social Gaming

Social gaming is not regulated in Brazil. It is permitted provided that chance is not the sole or preponderant factor in determining the final result of the game or that the players are not entitled to win prizes with monetary value.

Offshore Gambling Offering

Article 7 of Law No 14,790/2023 stipulates that only legal entities established under Brazilian law with headquarters and management located within the national territory, and which meet the requirements set forth in the regulations issued by the SPA, will be eligible for authorisation to operate fixed-odds betting.

In May 2024, Ordinance SPA/MF No 827/2024 set out an adjustment period for legal entities that were operating in Brazil at the time of the publication of Law No 14,790/2023, until 31 December 2024, to comply with the applicable legal and regulatory provisions regarding fixed-odds betting lotteries.

Later, Article 2 of Ordinance SPA/MF No 1,475/2024, issued in September 2024, set out that only legal entities that have applied for a licence until 17 September 2024 are considered to be within the adjustment period starting from 1 October 2024 and finishing on 31 December 2024.

Sports Betting

Land-based fixed-odds sports betting was legalised by Law No 13,756/2018 and is regulated by Law No 14,790/2023, as well as by the ordinances issued by the SPA and the Ministry of Finance (MF). Betting exchange is allowed and, as per Article 49 of Ordinance SPA/MF 1,231/2024, the betting operator is responsible for:

• providing, executing and settling the bets;
• crediting the prize amount to the winner’s account; and
• debiting it from the loser’s account.

Horse Race Betting

Horse-race betting is regulated by Law No 7,291/1984 and Decree No 96,993/1988. Horse-race wagering is restricted to non-profit entities that own the racetracks and are duly authorised by the Ministry of Agriculture, Livestock and Food Supply. These entities may appoint agents to facilitate wagering on their behalf and can also hire private suppliers, which are not subject to licensing or any specific regulation.

Bingo

Commercial bingos are prohibited in Brazil. In 2015, Law No 13,019/2014 was amended by Law No 13,204/2015 to include Article 84-B, which states that civil society organisations will be entitled to distribute, or promise to distribute, prizes – through sweepstakes, gift cards, competitions or similar operations – in order to raise additional resources for their maintenance or costs. Based on this provision, several “non-profit” bingo halls are operating in the country, but, according to SECAP’s understanding, these operations would need to have been previously approved by the Ministry of the Economy.

Casinos

Casinos are prohibited in Brazil. Article 14, paragraph 2 of Law No 14,790/2023 only allows fixed-odds bets that involve “online game events” (casinos) to be offered through virtual platforms.

Lotteries

Caixa Econômica Federal runs the federal lottery and has a network of over 13,500 agencies. Caixa Econômica Federal was granted control of the federal lottery following Decree No 50,954/1961, which cancelled all lottery licences granted to the private sector. State lotteries run by member states and the Federal District are legislated at subnational level, and can therefore be subject to diverse legal frameworks.

Poker

Poker has been recognised as a sport by the Secretariat of Sports. As a skill-based game, online poker is permitted. According to the sole paragraph of Article 3, I of Ordinance SPA/MF No 1,207/2024, skill-based games do not fall under the category of virtual events in online fixed-odds betting.

Gaming Machines

Gaming machines are prohibited in Brazil.

The general prohibition on gambling in Brazil is set forth in Article 50 of the Misdemeanours Law, which imposes imprisonment for three months to one year and a fine for those who establish or exploit games of chance in a public place, or a place accessible to the public, by means of the payment of an entry fee or otherwise.

The federal lottery, operated by the MF, is regulated by several laws and decrees.

LOTEX (the instant lottery) was created by Law No 13,155/2015 and amended by Law No 13,756/2018, and is regulated by Decree No 9,327/2018. Decree No 11,675/2023 also regulates LOTEX and allows the MF to authorise, on a temporary basis, direct operation by Caixa Econômica Federal for a specified period or until the commencement of indirect operation by the winning operator of the future concession bidding process.

Horse-race betting is regulated by Law No 7,291/1984 and Decree No 96,993/1988.

Fixed-odds sports betting was legalised by Law No 13,756/2018 and is regulated by Law No 14,790/2023, as well as by the ordinances issued by the MF and SPA.

Law No 14,455/2022 authorised the federal executive power to create health and tourism lotteries.

In Brazil, gambling does not have a legal definition. In fact, the word “gambling” does not translate perfectly into Portuguese. It can mean a bet or a game involving a consideration, a prize and chance.

A “bet” is defined in Article 2, I of Law 14,790/2023 as “an act through which a certain amount is placed at risk with the expectation of obtaining a prize”. An “online game” is defined, in item VIII, as an “electronic mechanism that enables virtual betting on a game in which the outcome is determined by the result of a future random event, based on a random number, symbol, figure or object generator as defined in the system’s rules”.

Article 50 of the Misdemeanours Law establishes that the operation of illegal games of chance in a public place, or in a place available to the public, is subject to imprisonment for between three months and one year and to a fine.

Games of chance are treated as misdemeanours, which are recognised by law as offences punishable by minor penalties (Article 61 of Law No 9,099/1995). In other words, a misdemeanour is a less offensive crime when compared to a criminal violation of Brazilian law.

On the other hand, “skill-based games” are defined in Article 2, VIII of Ordinance SPA/MF No 1,207/2024 as “a category of game in which the outcome is determined primarily or predominantly by the mental or motor skills of the participant, such as dexterity, expertise, intelligence, competence and knowledge, even though there may be non-prevalent random events”. This is the case with poker, for instance, and these games are legal in Brazil and do not fall under the category of virtual events in online fixed-odds betting.

The Misdemeanours Law dates from 1941 and does not differentiate between online and land-based activities.

Decree No 9,327/2018, which regulates LOTEX, defines physical bets as those made by the client upon the purchase of a printed ticket, and virtual bets as those made by the client via electronic channels.

Law No 13,756/2018, which introduced fixed-odds sports betting as a lottery modality, sets forth that this can be offered by both land-based and online operators. Law No 14,790/2023 and the ordinances issued by the SPA regulate fixed-odds sports betting.

See 3.3 Definition of Land-Based Gambling.

According to Article 50 of the Misdemeanours Law, a person is guilty of illegal betting if they establish or explore games of chance, an offence punishable with imprisonment for between three months and a year, and with a fine. Anyone found to be taking part in a game of chance, even via the internet or any other means of communication, as a cashier or bettor, is subject to a fine ranging from BRL2,000 to BRL200,000.

Currently, all prosecution cases related to Article 50 are suspended until the Brazilian Supreme Court judges Extraordinary Appeal No 966,177. The scope of that judgment will determine whether Article 50 of the Misdemeanours Law complies with the constitutional precepts concerning free enterprise and fundamental freedoms, as provided for in Articles 1(IV), 5(XLI) and 170 of the Federal Constitution.

An unlawful gambling operator can be penalised with imprisonment for between three months and a year, and with a fine. Players and punters involved with unlawful gambling are subject to fines ranging between BRL2,000 and BRL200,000.

In 2024, Decree No 11,907/2024 established the SPA within the organisational structure of the MF, as well as its responsibilities for licensing, permitting, regulating, monitoring, supervising, overseeing and sanctioning fixed-odds betting, lotteries and other activities.

The Ministry of Agriculture, Livestock and Food Supply is responsible for the regulation of horse race betting.

Regulation tends to be prescriptive. Consumer and data protection rules, on the other hand, are more risk-based, with the operator being held liable for the negative effects on consumers and data subjects, even if the prescriptive regulations have been complied with.

Legal entities that are established under Brazilian laws, have headquarters and management located within the national territory, and meet all the requirements set forth in applicable laws will be eligible for a licence to operate fixed-odds betting activities. See 4.4 Availability of Licences, 4.5 Duration of Licences and 4.6 Application Requirements for further details in respect of sports betting and horse race betting.

Sports Betting

Licences can be obtained at the SPA by legal entities that are established under Brazilian laws, have headquarters and management located within the national territory, and meet all the requirements set forth in applicable laws (including Ordinance SPA/MF No 827/2024).

Horse Race Betting

Licences can be obtained at the Ministry of Agriculture, Livestock and Food Supply.

Lotteries

No lottery licences are available in Brazil at the federal level.

Sports Betting

Fixed-odds betting licences are granted for a duration of five years.

Horse Race Betting

Horse race betting licences do not have an expiry date.

Sports Betting

Specific application requirements for fixed-odds betting are described in Ordinance SPA/MF No 827/2024. Only legal entities established under Brazilian laws with headquarters and management located within the national territory, and organised as limited liability companies or corporations with a minimum corporate capital of BRL30 million, may apply to the SPA for a licence. Subsidiaries of a foreign company established under Brazilian law, with headquarters and management in the national territory, may be authorised to operate fixed-odds lotteries ‒ provided that a Brazilian holds at least 20% of the operating agent’s share capital as a partner.

In addition, the legal entity must present evidence of integrity and prior experience in gaming services, and must submit certain information and documents related to technical, legal, financial, tax and labour aspects – and to the good standing of the shareholders, ultimate beneficial owners and administrators.

Horse Race Betting

The applicant must:

• be a non-profit entity legally incorporated in Brazil;
• own or have the rights to use a racetrack;
• demonstrate the technical and economic viability of the weekly racing schedule;
• present the floor plan of the race field; and
• present the draft of a general betting plan (which includes the rules applicable for each game to be run by the operator, such as prizes, ticket value, minimum and maximum betting amounts, and payout).

Lotteries

Currently, no lottery licences are available in Brazil at the federal level.

Entities may apply for fixed-odds betting at any time, in accordance with the administrative procedure established in the regulations of the MF and SPA (Article 9 of Law No 14,790/2023). The SPA must notify the applicant legal entities within 150 days of the application date to pay the licence fee and meet the requirements described in Ordinance SPA/MF No 827/2024. Applying entities will then have 30 days to make payment and present evidence of compliance with the requirements.

Regarding application fees, BRL30 million allows the operation of up to three commercial brands by the legal entity via its electronic channels.

Law No 14,790/2023 amended Article 32 of Law No 13,756/2018 to establish the monthly gaming monitoring fee for the commercial operation of fixed-odds lotteries. It is triggered by the regular exercise of regulatory authority and is applied monthly to the proceeds collected after deducting the amounts referred to in Article 30, paragraph 1-A of Law No 13,756/2018 for social destinations. Normative Instruction SPA/MF No 9/2025 provides guidance on the payment of the gaming monitoring fee.

Types of Authorisations and Licences

According to Article 7, I of Normative Ordinance No 1,330/2023 and Law No 14,790/2023, licences will not be granted to individuals. Only legal entities that are established under Brazilian laws, have headquarters and management located within the national territory, and that meet all the requirements set forth in applicable laws will be eligible for a licence to operate fixed-odds betting activities.

Application Process

Application is subject to the confirmation of reputation and knowledge of the applicant entity’s controllers and administrators, as per Article 11 of Law No 14,790/2023. Key application requirements for directors, owners and senior management are established in Ordinance SPA No 827/2024 and involve:

• integrity requirements;
• a minimum of three years of professional experience in a field related to their role as administrators; and
• a higher education degree in an area compatible with the position to be held.

According to Article 7 of Normative Ordinance No 1,330/2023, a licence will not be granted to legal entities whose partners or controlling shareholders, control agreement members, managers and other individuals composing the corporate structure meet the following criteria:

• they hold a direct or indirect participation in a football joint stock company or a professional sports organisation;
• they act as professional athletes, members of technical teams, referees or managers of Brazilian sports teams;
• they are suspended from bidding and contracting with the Public Administration or have been declared unfit by the Public Administration at the federal, state or municipal level, or by the Federal District, and where the reasons for the punishment continue to apply (or until rehabilitation is achieved);
• they are the spouses, partners or relatives, either by blood or by affinity, up to the third degree, of public servants or service providers working in the part of the MF responsible for granting the authorisations referred to in applicable laws;
• they have a prohibition under special law;
• they have a conviction for:
1. administrative misconduct;
2. bankruptcy;
3. tax evasion;
4. malfeasance;
5. active or passive corruption;
6. extortion;
7. embezzlement;
8. offences against the popular economy;
9. offences against public faith;
10. offences against intellectual property; or
11. offences against the national financial system; or
• they have a conviction with a criminal sentence that temporarily or permanently bars access to public office, by a final judicial decision.

If the licence is granted, the operating agent must pay a licence fee in the amount of BRL30 million.

Ongoing Annual Fees

Law No 14,790/2023 amended Article 32 of Law No 13,756/2018 to establish the monthly gaming monitoring fee for the commercial operation of a fixed-odds lottery. The monthly gaming monitoring fee is triggered by the regular exercise of regulatory authority and is applied monthly to the proceeds collected after deducting the amount paid in prizes and the amount of income tax applicable to the prizes.

Ongoing Requirements

No personal authorisations or licences are currently available for fixed-odds betting activities.

Personal Sanctions

Personal sanctions can be applied solely or jointly with financial penalties, and include disqualification from acting as a director or administrator, as well as from holding positions in the bodies provided for in the by-laws or in the corporate charter of a legal person that operates any type of lottery, for a maximum period of 20 years (Law No 14,790/2023, Article 41, IX).

Recent and Forthcoming Changes

Application is subject to the confirmation of reputation and knowledge of the applicant entity’s controllers and administrators, as per Article 11 of Law No 14,790/2023.

Normative Ordinance No 1,330/2023 establishes conditions for controlling partners or shareholders, and other individuals comprising the corporate structure, that may prevent a legal entity from obtaining a licence to operate fixed-odds betting activities.

Ordinance SPA/MF No 827/2024 determines that the licence shall be subject to integrity requirements, minimum professional experience and formal education of managers.

Administrators, partners, officers, managers and employees of the operating agent are also prevented, directly or indirectly, from betting (Article 26, II of Law No 14,790/2023).

Land-based gambling is restricted to:

• federal and state lotteries;
• fixed-odds betting;
• horse race betting at racetracks and agencies;
• poker rooms; and
• future LOTEX and sports-betting points of sale.

Premises licensing varies according to the gambling modality. Caixa Econômica Federal’s lottery agencies are concessions granted by the federal government, and the premises licences are granted by Caixa Econômica Federal.

Fixed-odds betting premises are subject to the conditions described in Law No 14,790/2023. At the time of the application for the licence, the applying entity must identify whether it intends to offer bets in virtual or physical modalities, either separately or jointly, in accordance with Article 14 of Law No 14,790/2023.

Horse-race entities must apply for their agents’ and agencies’ licences before the Ministry of Agriculture, Livestock and Food Supply. The horse-race entity remains entirely responsible for any and all acts of the agent. The agent’s licence is granted to the agent (an individual or a legal entity) to facilitate wagering only at the specified venue.

B2C licences are regulated by Ordinance SPA/MF No 827/2024 for the commercial operation of fixed-odds lotteries by private economic agents throughout the national territory. Online games events are considered as fixed-odds betting, as per Article 3 of Law No 14,790/2023.

There are currently no regulations on B2B licences at the federal level.

Rules applicable to affiliates are described in Ordinance SPA/MF No 1,231/2024. As per Article 22, communication, advertising and marketing actions carried out by affiliates are considered part of the actions of the betting operator, and the operators are required to ensure:

• that their affiliates comply with applicable laws;
• the establishment of written contracts with their affiliates, in Portuguese, that explicitly specify whether or not subcontracting is allowed, in which case the operator’s responsibility cannot be waived;
• the affiliates’ duty to comply with legal, regulatory and self-regulatory rules regarding communication, advertising and marketing; and
• the criteria for compensating affiliates.

According to Ordinance SPA/MF No 827/2024, a licence will be granted considering the upper limit of three brands that can be exploited by the legal entity via its electronic channels. The licensed operating agent will be liable for all brands nominated in its application to operate fixed-odds betting. Therefore, it is not possible to offer white-label solutions.

Online games events are considered as fixed-odds betting, as per Article 3 of Law No 14,790/2023. Therefore, the recent changes described in 1.1 Current Outlook and Recent Changes are applicable. Online gambling provisions are also included in Bill of Law No 442/1991 (renumbered as Bill of Law No 2,234/2022 in the Senate), under discussions in the plenary of the Senate.

Normative Ordinance No 1,330/2023 and Ordinance SPA/MF No 1,231/2024 provide that responsible gaming measures must be put in place to:

• prevent compulsive or pathological gambling;
• protect vulnerable individuals (mainly children and adolescents); and
• ensure that bettors are over 18 years of age.

Normative Ordinance No 1,330/2023 and Ordinance SPA/MF No 1,231/2024 establish that responsible gambling consists of measures, guidelines and practices to be adopted for:

• the prevention of compulsive or pathological gambling disorders;
• the prevention and non-inducement of debt; and
• the protection of vulnerable individuals, especially minors and the elderly.

In addition, Ordinance SPA/MF No 1,231/2024 establishes specific and detailed measures to be implemented by the operating agent to ensure responsible gaming. Among the requirements is the obligation for the operator to implement gaming management tools, and to promote informative and preventative actions to raise awareness among bettors about compulsive or pathological gambling disorders (starting from the bettor’s registration in the betting system), by creating a specific responsible gaming policy and disseminating and implementing legal requirements, best practices and harm reduction measures.

Law No 9,613/1998 defines the AML legal framework in Brazil. Pursuant to Article 1, money laundering under Brazilian legislation is the act of hiding or disguising the nature, origin, location, disposition, remittance or ownership of property, goods, rights or values arising directly or indirectly from a criminal offence. This law created the Council for Financial Activities Control (Conselho de Controle de Atividades Financeiras; COAF), the regulatory body in charge of pursuing, investigating and sanctioning any activity related to money-laundering crimes. COAF issues directives to regulate activities of industries that may facilitate money laundering, such as gambling.

More recently, Normative Ordinance No 1,330/2023 and Ordinance SPA/MF No 1,143/2024 provide that sports-betting operators must inform COAF in the case of suspected money-laundering activities, and must develop and implement policies, procedures and internal controls to identify, assess, control and monitor the risks associated with money laundering, terrorist financing and the proliferation of weapons of mass destruction.

Decree No 57,690/1966 and Decree No 4,563/2002 regulate advertising in Brazil. According to the latter, all advertisements in Brazil must comply with the rules set forth by the Executive Council for Standard Advertising Practices (Conselho Executivo das Normas-Padrão; CENP). This council is responsible for regulating the commercial relations between advertisers and agencies, while the National Council for Advertising Self-Regulation (Conselho Nacional de Autorregulamentação Publicitária; CONAR) is responsible for ensuring ethics in advertising content.

Both the CENP and CONAR are non-governmental organisations comprising members of the advertising industry, and they define their own statutes and codes. CONAR’s Self-Regulation Code also includes a specific rule according to which advertising content must not “induce criminal or illegal activities”.

The legal definition of advertising is set forth by Article 2 of Decree No 57,690/1966 as any paid form of dissemination of ideas, merchandise, products or services by an identified advertiser.

Article 23, paragraph 2 of Normative Ordinance No 1,330/2023 and Article 14 of Ordinance SPA/MF No 1,231/2024 establish that additional aspects of advertising may be provided for in an advertising self-regulation code.

For that purpose, in 2023 CONAR issued Annex X to CONAR’s Self-Regulation Code, with specific rules to ensure that betting advertisements are responsible and with particular attention paid to the need to protect children, adolescents and other vulnerable individuals.

Ordinance SPA/MF No 1,231/2024 further regulates the conditions that operating agents must observe to advertise fixed-odds betting in Brazil.

Ordinance SPA/MF No 827/2024 stipulates, as a condition to the issuance of a licence, that operating agents must adopt and implement a code of conduct and disseminate best practices in advertising and publicity.

No advertisement may:

• encourage or provoke any type of offence or racial, social, political, religious or national discrimination;
• contain statements or visual or audio presentations that may offend the decency standards of the audience it intends to reach;
• exploit the consumer’s credulity, lack of knowledge or inexperience;
• cause fear without a relevant social reason; or
• exploit any type of superstition.

In the specific area of fixed-odds betting, Normative Ordinance No 1,330/2023 and Ordinance SPA/MF No 1,231/2024 provide that advertising, public relations and marketing actions for these operations may not:

• be aired in schools and universities;
• lack an age restriction notice, embodied by the “18+” symbol or the notice “prohibited for individuals under 18 years of age”;
• disseminate misleading claims about the odds of winning or the potential gains that bettors can expect;
• portray betting as socially appealing or contain statements from celebrities or digital influencers that suggest gambling contributes to personal or social success, or improved financial conditions;
• use sexually suggestive messages or objectify physical attributes;
• incite intensified betting activities;
• promote the product as a means to recover losses from previous bets or other financial losses;
• in any way offend the cultural beliefs or traditions of the country, especially those opposed to gambling; or
• suggest or induce the belief that, among other factors, skill, dexterity or experience can influence the outcome of a sports event.

Article 50 of CONAR’s Self-Regulation Code states that violators of the rules established in the code are subject to the following penalties:

• a written warning;
• a recommendation to modify or correct the advertisement;
• a recommendation to suspend the broadcasting of the advertisement; and
• public disclosure of CONAR’s opinion as regards the advertiser, the agency and the “vehicle” in relation to non-compliance with the recommended measures.

Fixed-odds betting operating agents must disclose situations involving a merger, spin-off, acquisition, transformation, transfer or modification of direct or indirect corporate control to the SPA by submitting all necessary documentation within 30 days of the occurrence of one of these events.

There are currently no acquisition or change-of-control regulations in place for horse race betting in Brazil.

The occurrence of a merger, spin-off, acquisition, transformation, transfer or modification of direct or indirect corporate control of the operating agent may trigger revocation of the licence granted by the SPA, as per Article 6 of Ordinance SPA/MF No 827/2024. The SPA will have 150 days to review documentation submitted by the operating agent and make a decision.

There are currently no requirements for passive investors in relation to acquisitions or changes of control. See 4.10 Personal Licensing (Application Process) regarding Article 7 of Normative Ordinance No 1,330/2023.

Horse Race Betting

The Ministry of Agriculture, Livestock and Food Supply is the regulatory body in charge of regulating, monitoring and enforcing the regulations and penalties related to racetracks in Brazil.

Sports Betting

In 2024, Decree No 11,907/2024 established the SPA within the organisational structure of the MF, as well as its responsibilities for licensing, permitting, regulating, monitoring, supervising, overseeing and sanctioning fixed-odds betting, lotteries and other activities.

Also, as per Ordinance SPA/MF No 1,143/2024, operating agents will be subject to monitoring by COAF, the regulatory body in charge of investigating and sanctioning activities related to money laundering.

According to Article 41 of Law 14,790/2023, administrative sanctions include:

• a warning;
• for a legal person, a fine ranging from 0.1% to 20% of the revenue after deducting the cost of prizes and income tax levied thereon, relative to the fiscal year before the initiation of the administrative sanctioning process, which shall never be less than the advantage obtained (when its estimation is possible) nor exceed BRL2 billion per infraction;
• for other natural or legal persons under public or private law, and for any entities or persons constituted in fact or in law (temporarily or otherwise, with or without legal personality, not engaging in business activity and when it is not possible to use the revenue criterion), the fine shall be between BRL50,000 and BRL2 billion per infraction;
• partial or total suspension of the exercise of activities for up to 180 days;
• revocation of authorisation, extinction of permission or concession, cancellation of registration, disaccreditation or a similar releasing action;
• prohibition from obtaining ownership of a new authorisation, grant, permission, accreditation, registration or similar releasing action for a maximum of ten years;
• prohibition from carrying out certain activities or types of operations for a maximum of ten years;
• prohibition from participating in tenders that have as their object the concession or permission of public services in the federal public administration, directly or indirectly, for not less than five years; and
• disqualification from acting as a director or administrator, and from holding positions in the bodies provided for in the by-laws or in the corporate charter of a legal person that operates any type of lottery, for a maximum of 20 years.

The sanctioning procedural rite is described in Ordinance SPA/MF No 1,233/2024. Operating agents and their administrators that fail to comply with the AML obligations described in Ordinance No 1,143/2024 may also be subject to the sanctions provided for in Article 12 of Law 9,613/1998, by means of an administrative sanctioning process. Sanctions described in Article 12 of Law No 9,613/1998 include:

• a warning;
• a variable monetary fine not exceeding:
1. double the value of the transaction;
2. double the actual profit obtained, or that would presumably have been obtained, from the transaction; or
3. BRL20 million;
• temporary disqualification, for up to ten years, from holding the position of administrator in operating legal entities and other entities described in Law No 9,613/1998; and
• revocation or suspension of the authorisation to engage in activities, operations or functioning.

See the second and third bulletpoints listed in 11.2 Sanctions for the financial penalties to be calculated and enforced by the SPA.

All gambling companies in Brazil are subject to corporate income tax (imposto de renda da pessoa jurídica; IRPJ) and social contribution on net profit (contribuição social sobre o lucro líquido; CSLL) at a combined general rate of 34%. The IRPJ rate is 15%, and a 10% surcharge applies to taxable income exceeding BRL240,000 per year. CSLL is due at a rate of 9%.

The effective tax rate may vary according to the system elected by the Brazilian legal entity for calculating IRPJ and CSLL (actual or deemed profit system). Companies with total revenues greater than BRL78 million in the previous year are automatically subject to the actual profit system.

• Actual profit system ‒ the tax basis is determined based on the accounting net profit, adjusted in accordance with the addition of non-deductible expenses and the exclusion of certain amounts. The Programme of Social Integration (Programa de Integração Social; PIS) and Contribution for the Financing of Social Security (Contribuição para o Financiamento da Seguridade Social; COFINS) are taxed under the non-cumulative method at rates of 1.65% and 7.6%, respectively, allowing for credits from acquisitions.
• Deemed profit system ‒ the tax basis for services is 32% on the company’s gross revenues, on an accrual or cash basis. The PIS and COFINS are taxed under the cumulative method at rates of 0.65% and 3%, respectively, with no allowance for credits.

Besides the ordinary corporate taxes, gambling companies’ activities are also subject to the following taxes.

Instant Lottery – LOTEX

Taxation on the operator

The LOTEX operator’s gross revenue is 18.3% of the total sales. This is the tax basis for PIS (1.65%), COFINS (7.6%) and service tax (imposto sobre serviços, or ISS; 2% to 5%).

Taxation on players’ winnings

Lottery cash prizes that exceed the value of the first tier of the individual income tax monthly rate table (BRL2,428.80) are subject to income tax withholding at a rate of 30%, as set forth in Article 732, I of Decree No 9,580 of 22 November 2018 and Article 56 of Law No 11,941 of 27 May 2009.

Prizes in the form of goods and services are subject to income tax withholding at a rate of 20%, as set forth in Article 733 of Decree No 9,580 of 22 November 2018.

Horse Race Betting

Taxation on horsemen’s winnings

Prizes paid to horsemen, breeders and jockeys are subject to income tax withholding at a rate of 15%, as set forth in Article 737 of Decree No 9,580 of 22 November 2018.

Taxation on players’ winnings

Bettors’ prizes are subject to income tax withholding at a rate of 30%, as set forth in Article 732, II of Decree No 9,580 of 22 November 2018.

Sports Betting

Taxation on the operator

As per Article 30, paragraph 1-A, from the proceeds of the revenue, after deductions associated with the payment of prizes and income tax thereon:

• 88% will be allocated to cover the operating and maintenance expenses of the operator and other betting games, except for the lottery modalities provided for in Law No 13,756/2023; and
• 12% will be allocated as social destinations, for the purposes of education, public safety, sports, social security, tourism, health and other social domains.

Taxation on players’ winnings

According to Article 31 of Law No 14,790/2023, net winnings from fixed-odds lottery bets are subject to a 15% IRPF rate. Net winnings are defined as the positive results of these bets each year, after deducting any losses from similar bets. The tax applies only to net winnings exceeding the amount of the first bracket of the annual progressive IRPF table – ie, BRL 2,428.80. This rule is also applicable to fantasy sports winnings.

Poker

Taxation on the operator

The taxation applies as follows.

• Tournaments ‒ the operator’s gross revenue is the total of the tournament’s entry fees minus the amount separated for the prize pool. This is the tax basis for PIS (0.65% or 1.65%), COFINS (3% or 7.6%) and ISS (2% to 5%).
• Ring games ‒ the operator’s gross revenue is the rake collected in each hand. This is the tax basis for PIS (0.65% or 1.65%), COFINS (3% or 7.6%) and ISS (2% to 5%).

Taxation on players’ winnings

According to the Brazilian Federal Revenue Service (Receita Federal do Brasil; RFB), when the prize depends on the performance of the participants, it is deemed as remuneration for the work, regardless of whether the prizes are paid in cash or in the form of goods and services. Therefore, if the prize is paid by a Brazilian legal entity to an individual fiscally resident in Brazil, it will be subject to personal income tax withholding, calculated according to the following progressive tax rates (in Brazilian reais):

• from BRL0 to BRL2,428.80 – income tax exemption, no deductible amount;
• from BRL2,428.80 to BRL2,826.65 – 7.5% withholding tax, BRL182.16 deductible;
• from BRL2,826.66 to BRL3,751.05 – 15% withholding tax, BRL394.16 deductible;
• from BRL3,751.06 to BRL4,664.68 – 22.5% withholding tax, BRL675.49 deductible; and
• BRL4,664.69 and above – 27.5% withholding tax, BRL908.73 deductible.