New Rules for Fixed-Odds Betting in Brazil

Authorized since December 2018, fixed-odds betting has grown significantly in Brazil. As of the end of 2023, approximately 3,000 websites and apps for betting generated BRL$12 billion. That’s over US$2.4 billion! But until recently, both companies and players were navigating an unregulated field.

Law 14790/23, which went into effect in December 2023, now sets the rules for companies in the fixed-odds betting industry. These rules include obtaining government authorization to operate and paying fees for setup and maintenance. The new law also imposes requirements on corporate structure, business practices and policies, and taxation.

To obtain authorization, a company must be a Brazilian entity with its primary office and administration in Brazil. Gone are the days when companies could set up offshore entities yet still operate in Brazil. In addition, companies must have a Brazilian national with at least 20% ownership, and the controlling shareholder cannot have a relationship with a sporting organization.

As for practices and policies, companies must establish customer assistance channels, implement measures to prevent money laundering and terrorism financing, and promote responsible betting incentives. They must also take action to prevent fraud and manipulation in betting.

Then there are taxes on both companies and individuals. Companies must pay 12% of their gross gaming revenue to fund social security, education, health, tourism, public security, and sports. On the player’s side, there’s a 15% tax on earnings.

As Brazil puts into practice these rules for fixed-odds betting, both companies and players must adapt to this new regulatory environment.