Brazil Fixed Odds Betting Authorization

Cost boundary

The fixed government grant payment is BRL 30 million for one five-year authorization covering up to three brands. It is due within thirty days after SPA communicates completion of its analysis. There is no separate filing fee, but authorization is not issued without the grant payment. A monthly supervision fee is also due as a fixed banded amount based on the monthly amount allocated to operator costs and maintenance, not as a percentage of GGR. The eight current amounts run from BRL 54,419.56 through BRL 1,944,000, with the top band applying above BRL 660,960,000.01. Separately, the applicant must meet BRL 30 million minimum share capital and BRL 30 million minimum net worth tests and maintain a BRL 5 million financial reserve in federal public securities through a financial institution. Capital, net worth, and reserve are financial requirements, not government fees. Legal work, setup, testing, certification, personnel, payments, data replication, and SIGAP reporting are separate. No all-in budget or fixed USD equivalent applies.

Process timing

Under the general regime, SPA must notify the applicant within up to 150 days from the authorization request's protocol date. Requests are reviewed in filing order. If the applicant amends its request, the protocol date and 150-day count move to the amendment date. A Ministry request for supplemental information does not itself replace the original filing date, although incomplete, inconsistent, or insufficient documentation can suspend or extend the analysis. The government service page still labels total end-to-end duration as not estimated. The 150-day period is an official notification window, not a guaranteed launch date. The grant payment, technical evidence, domain registration, integration, and launch readiness have their own steps and deadlines.

Tax / revenue model

From April 1, 2026, Complementary Law 224 changed the sector allocation so that the operator retains 87 percent of GGR and 13 percent is allocated away from the operator. The operator share becomes 86 percent in 2027 and 85 percent from 2028, producing allocations of 14 percent and 15 percent. GGR for this purpose is betting proceeds minus prize payments. The monthly supervision fee is separate. General company taxes are also separate: IRPJ is 15 percent of taxable profit plus a 10 percent surcharge on the portion above BRL 20,000 per month, and CSLL is 9 percent for ordinary companies. PIS, Cofins, municipal ISS, credits, deductions, the consumption-tax transition, and the actual tax regime require an entity-specific model. For individual players, annual net fixed odds and fantasy-sports winnings above the first annual IRPF bracket are taxed at 15 percent, rather than 15 percent of every withdrawal or winning bet.

Applicant / local requirements

The authorization holder must be a legal entity formed under Brazilian law with headquarters and administration in Brazil. At least 20 percent of its share capital must be held by a Brazilian individual or by a Brazilian legal entity formed under Brazilian law with headquarters and administration in Brazil. The statutory directors responsible for finance, integrity and compliance, customer service and ombudsman work, and relations with the Ministry of Finance must be domiciled in Brazil, but do not have to be Brazilian citizens. The corporate record must use the applicable CNAE 9200-3/99 and identify fixed odds betting as the main business activity. Minimum share capital and net worth are BRL 30 million, and the financial reserve is at least BRL 5 million. Betting systems and data are normally maintained in Brazilian data centers. Foreign hosting is allowed only under the cooperation and data-replication conditions in Portaria 722, including a Brazilian copy updated at least every 24 hours and integrity checks at least every seven days. The operator, not its suppliers, is responsible for SIGAP submissions.

Term / continuation

The authorization has a five-year term and is personal to the authorized legal entity, nonnegotiable, and nontransferable. A merger, demerger, incorporation, transformation, or direct or indirect change of control can trigger SPA review. Automatic renewal, the renewal procedure, and the next-cycle payment remain unresolved. A further BRL 30 million payment after five years is not an established requirement.

Complementary Law 224 of December 2025 raised the sector allocation from 12 percent to 13 percent from April 1, 2026, with later steps to 14 percent in 2027 and 15 percent from 2028. It also created joint tax liability for payment and advertising businesses that continue supporting unauthorized betting after the required notice. Law 15,358 of March 24, 2026 and Decree 13,033 of June 19, 2026 strengthened financial blocking and enforcement against unauthorized operators. From July 17, 2026, every fixed odds advertisement must carry one prescribed addiction, loss, or investment warning in a clear horizontal block covering at least 10 percent of the advertisement. Parallel rules extend compliance responsibility across the advertising chain and prohibit promotion of unauthorized operators. Centralized self-exclusion has been operational since December 2025. Planned revisions to authorization, suspension, appeal, and cessation procedures remain future work rather than replacement licensing criteria.