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Sports betting and online gaming in Brazil: Ministry of Finance authorization, the R$30 million licence fee and the rising GGR levy

Last verified: 2026-10-27 · Status: Changing

Fixed odds betting and online games in Brazil need a Ministry of Finance authorization granted to a Brazilian incorporated company with at least 20 percent of its capital held by a Brazilian partner, for a fixed fee of up to R$30 million for three brands. Operators keep a share of gross gaming revenue and pay the rest as a levy that rose from 12 percent to 13 percent in 2026 and steps to 14 percent in 2027 and 15 percent from 2028. Players pay 15 percent income tax on net winnings, and fines reach R$2 billion per infraction.

USD figures use the Banco Central do Brasil PTAX selling rate of R$5.3346 per US dollar for 27 October 2026. Conversions are for orientation only.

Key facts

Maximum fixed licence fee per betting authorization (three brands)	30000000 BRLLei nº 14.790 art. 12, as of 2026-10-27 · in force
Term of a betting authorization	5 yearsLei nº 14.790 art. 5 III, as of 2026-10-27 · in force
Minimum stake of a Brazilian shareholder in an authorized operator	20 %Lei nº 14.790 art. 7 § 1 IX, as of 2026-10-27 · in force
Levy on gross gaming revenue, 2026	13 %Lei nº 13.756 art. 30 § 1-E I, as of 2026-04-01 · in force
Levy on gross gaming revenue from 2028	15 %Lei nº 13.756 art. 30 § 1-A, as of 2026-10-27 · in force
Income tax on net betting winnings	15 %Lei nº 14.790 art. 31, as of 2026-10-27 · in force
Maximum fine per infraction	2000000000 BRLLei nº 14.790 art. 41 II, as of 2026-10-27 · in force

The rule

1. Fixed odds betting is operated in a competitive environment under prior authorization from the Ministry of Finance. The authorization is discretionary, with no minimum or maximum number of operators, is personal, non negotiable and non transferable, may be granted for 5 years, and may be reviewed on any merger, spin off, transformation or direct or indirect change of control.Lei nº 14.790 (fixed odds betting law), Arts. 4 and 5 caput I to III and § 1, 2023-12-29 official text · verified 2026-10-27

2. Only companies incorporated under Brazilian law with head office and management in Brazil may be authorized. Ministry of Finance rules must cover minimum capital, proven betting or lottery experience of a controlling group member, management requirements, a director for relations with the Ministry, customer service and ombudsman, IT and cybersecurity certification, membership of sports integrity monitoring bodies and a Brazilian shareholder holding at least 20 percent of the capital. Controlling shareholders may not hold stakes in football companies or professional sports organizations or manage Brazilian sports teams.Lei nº 14.790, Art. 7 caput, § 1 I to IX and § 2, 2023-12-29 official text · verified 2026-10-27

3. The authorization is issued only after payment of a fixed licence consideration set by the Ministry of Finance, capped at R$30,000,000 for the use of three commercial brands per authorization, payable within 30 days of notice that the application review is complete.
Cost to do it: Up to R$30,000,000 (about US$5.62 million) per authorization covering three brands.Lei nº 14.790, Arts. 12 and 13, 2023-12-29 official text · verified 2026-10-27

4. Of the betting proceeds after prizes and income tax on prizes (gross gaming revenue), the operator keeps 85 percent for its costs, 3 percent goes to social security (half of it to health) and 12 percent to education, public security, sport, tourism and other listed purposes. In the transition the operator keeps 87 percent with 1 percent to social security in 2026, and 86 percent with 2 percent in 2027. The levy is computed and paid monthly as set by the Federal Revenue.
Cost to do it: Levy of 13 percent of GGR in 2026, 14 percent in 2027, 15 percent from 2028.
Example: GGR of R$100,000,000 in 2026: levy R$13,000,000, operator keeps R$87,000,000; from 2028 the levy is R$15,000,000. / About US$18.75 million of GGR: levy about US$2.44 million in 2026 and US$2.81 million from 2028.Lei nº 13.756, art. 30 §§ 1-A, 1-E and 9 as worded by Lei Complementar nº 224 of 26 December 2025, Lei Complementar nº 224 arts. 9 and 14 I b, 2025-12-26 official text · verified 2026-10-27 · changed: Lei Complementar nº 224 of 26 December 2025 cut the operator share from 88 percent to 87 percent (2026), 86 percent (2027) and 85 percent (from 2028), effective from the first day of the fourth month after publication, so April 2026.

5. Payment and financial institutions that keep processing bets with unauthorized operators after formal notice, and anyone advertising unauthorized operators, are jointly liable for the taxes due on that betting and on winnings.Lei Complementar nº 224, Art. 6 I and II, 2025-12-26 official text · verified 2026-10-27

6. Net winnings from fixed odds bets are taxed under individual income tax at 15 percent, a rule that also applies to fantasy sport.Lei nº 14.790, Art. 31 caput and § 4, 2023-12-29 official text · verified 2026-10-27

7. Infringements lead to warning; fines for companies of 0.1 to 20 percent of the prior year's net betting proceeds, never below the advantage gained where measurable and never above R$2,000,000,000 per infraction; suspension for up to 180 days; cassation of the authorization; and a ban of up to 10 years on new authorizations.
Cost to do it: Fine up to R$2,000,000,000 per infraction (about US$374.91 million).Lei nº 14.790, Art. 41 I, II and IV to VI, 2023-12-29 official text · verified 2026-10-27

Year	Operator keeps	Social security	Other earmarks	Total levy
2025 (before LC 224 effects)	88 percent	Within the 12 percent earmarks	12 percent	12 percent
2026 (from April)	87 percent	1 percent	12 percent	13 percent
2027	86 percent	2 percent	12 percent	14 percent
2028 onward	85 percent	3 percent	12 percent	15 percent

Split of gross gaming revenue (Lei nº 13.756 art. 30 as worded by Lei Complementar nº 224).

Worked example

A foreign operator enters through a Brazilian subsidiary with a Brazilian partner holding 20 percent (Lei nº 14.790 art. 7 § 1 IX) and pays the fixed fee of up to R$30,000,000 (about US$5.62 million) within 30 days of approval (arts. 12 and 13). On R$100,000,000 (about US$18.75 million) of gross gaming revenue in 2026 it pays a R$13,000,000 levy and keeps R$87,000,000; in 2028 the levy is R$15,000,000. A player who nets R$10,000 in winnings owes R$1,500 of income tax (art. 31).

Step by step

1. Incorporate in Brazil with head office and management in the country and bring in a Brazilian shareholder with at least 20 percent.
2. Meet Ministry of Finance rules on capital, experience, management, ombudsman, cybersecurity certification and sports integrity membership.
3. File the authorization request; pay the fixed fee within 30 days of the approval notice.
4. Set up monthly GGR levy computation and payment and income tax withholding on winnings.
5. Clear any merger or control change with the Ministry, which may review the authorization.

Common traps

The authorization is personal and non transferable; a change of control can trigger a review.
Controlling shareholders cannot own stakes in football companies or professional sports organizations.
The GGR levy rises each year to 2028; model 13, 14 and 15 percent, not the original 12 percent.
Banks, payment institutions and advertisers become jointly liable for taxes when they serve unauthorized operators after notice, so expect strict counterparties.

Sources

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