Brazil is on the verge of a significant breakthrough in its online gambling regulation, as the licensing process for online casinos enters its final stage. According to an expert from Parimatch, a local online casino, operators seeking to enter this growing market must secure licenses by the end of 2024, or face penalties starting from January 1, 2025. This regulatory milestone marks a crucial moment for both domestic and international gaming companies, eager to tap into Brazil’s booming iGaming sector.
According to the latest regulations, published by the Ministry of Finance in July 2024, operators must meet stringent requirements, including paying a BRL 30 million ($6 million) fee for a five-year license. Additionally, companies must have a physical presence in Brazil, with at least 20% of their share capital held by Brazilian stakeholders. The government has also set high standards for responsible gaming, data security, and technical compliance, ensuring that licensed operators adhere to strict consumer protection measures.
This comprehensive regulatory framework is expected to boost Brazil’s online gambling market, which is projected to generate over $2 billion in revenue by 2028. Key games permitted under the ordinance include slots, poker, and roulette, with specific rules on return-to-player (RTP) rates and tax obligations. The government will tax operators at approximately 55-58% of their total revenues, while players winning over BRL 2,824 ($547) will face a 15% tax on their earnings.
As the December 2024 deadline approaches, a surge in license applications is expected, solidifying Brazil’s position as one of the most attractive markets for global gaming companies