Operators have until the end of the year to become fully registered
The Brazilian government added normative Ordinance 827 to the Official Diary of the Union on May 21. It outlines the stipulations for operators seeking iGaming and sports betting licenses in Brazil.
Gaming operators will have an “adjustment period” until December 31, 2024, to comply with the new regulations. Companies submitting applications within 90 days of Ordinance 827’s publication will receive priority for evaluation.
Each authorized gaming provider must offer three skins and pay a BRL30 million ($5.9 million) fee for a five-year license. Operators that fail to receive a license before the cutoff date will face penalties beginning at the start of next year.
Applicants for iGaming licenses must be based in Brazil. However, foreign operators can still pursue licenses if they partner with a local operator that owns 20% or more of the company’s shared capital. Those operators must establish the relationship before applying, as any changes in control of the business would be reviewed by the Secretariat of Prizes and Bets (SPA) before approval.
Operators must also possess documentation showing they can legally operate in Brazil and provide a statement certified by the Central Bank of Brazil agreeing to comply with payment regulations. Applicants must also have certification from the Special Secretariat of Federal Revenue and the Office of the National Treasury, showing the business is registered to pay taxes in Brazil.
Providers granted a license must pay a 12% tax plus a monthly inspection fee based on gross gaming revenue.
The Ministry of Finance’s four-step process announced in April that the security, technical, and advertising requirements will be laid out by the SPA at the end of June. Details on how tax revenue will be distributed will be released by the end of July.
