Researching and collecting documentation, because legal online and offline gambling in Brazil might not become part of the country’s gambling legislation system, may hinder the ability of operators in Brazil to provide gambling services. Federal Law 14.790 and the Instructions of the Secretary of Lottery and Betting of the Ministry of Finance define the gambling regime in Brazil. This article aims to provide operators with the legal gambling documentation to assist in fulfilling and managing the legal gambling documentation requirements defined in the Law.
This article seeks to provide those interested in managing legal gambling in Brazil with the documentation that the legal gambling framework expects, and how this documentation assists in the management of legal gambling operational documentation in relation to the Instructions of the Secretary of Lottery and Betting.
Brazil’s Law 14,790 transforms gambling legislation in Brazil, and its Instructions transform the gambling legislation’s primary gambling legal framework. Whatever the gambling laws and regulations in Brazil may be, the operators of online casinos that allow players to place bets and play casino games must comply with the regulations.
Legal Requirements for Online Casino Operators
Statutory requirements that go beyond simple registration must be fulfilled to apply for an online casino license. Domestic legal entity incorporation is compulsory, alongside demonstrating financial soundness. Authorities require minimum capital and financial guarantees serving as pre-emptive collateral. Brazilian law requires incorporation with a minimum of 20% Brazilian ownership.
Operators are also required to transfer data within the country or to data hosting countries approved by the Brazilian government. Lawfully operating platforms are required to utilitarian comprehensive know-your-customer checks, geolocation, facial or biometric recognition and tools for responsible gambling, including self-exclusion. Policies for anti-money laundering and counter-terrorism financing are required by ordinance SPA/MF in recognition of the compliance stringency expected from Brazil.
Operators that are diligent and comprehensive in compliance planning are said to have the least amount of friction with the compliance process. Commenting in this regard, Erik King was quoted saying that compliance will differentiate responsible operators from those that will be unduly punished, stressing that consumer protection and transparency are of utmost importance to regulators.
King was commenting based on an exhaustive assessment of the regulatory phase and the subsequent transitioning of the sector in Brazil, emphasizing that awareness of the requirements can effectively shape the market positioning of an entity before receiving the requisite approvals.
Step-by-Step Guide to Applying for a Licence
The first step starts when you officially register at Brazil’s Betting Management System and give and submit the required corporate and financial details for the system to be checked. Background checks are performed on key individuals, like directors and major shareholders, to ensure that there are no legal or regulatory barriers to their participation.
Following and after this step, the operators are asked to answer clarifying questions or submit additional information to the system. What the regulators are looking at this point are the financial statements, system compliance policies and the system’s certifications and proofs of having sufficient capital.
Once the regulators consider the application to be sufficient, they will give the address for the application to be submitted. The potential authorizations that they might grant are complete or temporary.
By the end of 2024, a good number had received and fully completed the licences that were required for the launch of the new market in 2025. The rest received temporary authorizations while they waited for final certification for their processes and systems. Those who were successful in their applications paid the required concession fee, which allows them to hold a five-year licence, and they are obliged to submit regular reports to the system on their operations.
Key Documents and Compliance Checks
Documentation is at the core of every step taken in the execution of a new licensing process. The concerned authority requires documents like certified fiscal documents, legal corporate documents, corporate governance documents, and to set formal policies of governance in the business.
Also, technical documents that have audit reports of the gaming system and software integrity checks are required to ascertain that the games are fair and secure. Compliance officers must show detailed frameworks in the areas of anti-fraud, AML/CFT and responsible gambling, how they will provide consumer protection and how they will provide mechanisms to trace and monitor potential suspicious activity.
The proof of a legal, non-fraudulent system of tax registration and of secure financial control systems is needed as well. For Brazil, gross gaming revenue and player wins’ tax is a required part of the system. Hence, proof of compliance with these fiscal responsibilities is part of the licensing documents.
Choosing the Right Licensing Authority
Brazil’s integrated system designates the regulation of online gambling to the Portal de Prêmios e Apostas website under the Ministry of Finance, laying out a single head of system authority for licensing and supervision. Operators ought to communicate with this authority to respond to procedural queries and fulfill reporting obligations.
Collaborating with the federal regulatory authority streamlines processes, as all applications and pertinent documents are likely to come from the same organizational structure, while regulatory uniformity further harmonizes the tax treatment and compliance thresholds of the industry.
The line of communication with the authorities allows for a flexible timeline for setting the order of the technical certification sequencing, compliance reporting, and submission of financial documents. The list of approved third-party testing companies that the regulator provides offers opportunities for operators to enhance their engagement with the regulators to meet their compliance with the standards and cope with the revised regulatory expectations.
