iGN x 4H: Overview of Brazil’s iGaming License

The iGN editorial team, together with experts from 4H Agency, has prepared an overview of iGaming regulation in Brazil, where online gambling, including online casinos and betting, is regulated through a federal fixed-odds betting license.

At the same time, individual states retain their own regulatory powers. State lotteries operate in the country, horse racing is regulated, and the legalization of land-based casinos remains under consideration.

Federal Online Gambling License

The federal license is issued for a term of five years and covers up to three domains or brands. The same fee applies for each additional set of three domains or brands.

Key financial parameters of the license:

License fee — $5.5 million
Mandatory financial reserve — $930,000
Minimum share capital — $5.5 million

Applicant Requirements

Only companies registered in Brazil are eligible to apply for a license, including local subsidiaries of international groups, provided they have an office in the country.

Registration as Ltda or S.A., with at least 20% of the share capital owned by a Brazilian investor
Corporate and tax documentation, including CNPJ, disclosure of beneficial owners, and confirmation of no outstanding liabilities
Confirmation of the integrity of participants and the lawful origin of funds
Mandatory AML/CFT, responsible gaming, data protection, and customer support policies
At least one company representative with a minimum of three years of industry experience
An annual liquidity management policy, intraday risk monitoring, and a crisis plan
Retention of all supporting documentation throughout the license term
Restricted access for minors, employees, public officials, and athletes
A ban on misleading design elements and mandatory player control tools, including limits, breaks, blocks, and self-exclusion

Technical Requirements

The regulator sets strict requirements for operators’ technical infrastructure.

Servers, betting systems, and data centers must be located exclusively in Brazil
Hosting betting systems abroad is permitted only in countries with international legal assistance agreements
Mandatory ISO 27001 certification
Certification of all systems by regulator-approved bodies throughout the entire license term
Minimum RTP — 85%

Tax Burden

The following tax rates apply to licensed operators:

13% of GGR
15% on player winnings

Key Features of the Brazilian iGaming Market

The market is characterized by a combination of federal licensing and state-level rules, resulting in a fragmented legal framework.

Political pressure and ongoing tax disputes
Dominance of the offshore segment and low effectiveness of domain blocking
Low LTV and a high share of bonus-driven players
An increase in the GGR tax from 13% in 2026 to 14% in 2027 and 15% in 2028
Discussions around additional tax assessments for previous periods
Only personal bank accounts and PIX are permitted, while offshore transactions are actively blocked by banks
Even major international operators face license refusals or exit the market
The SIGAP system remains a significant compliance factor due to high load and technical failure risks

According to 4H, Brazil’s iGaming license combines high entry costs — $5.5 million for the license and $5.5 million in share capital — with strict localization requirements and a mandatory Brazilian investor stake, making market entry more challenging for foreign operators.