Brazil is expected to become the 3rd largest market in the world in 2025; sites will have to operate with a .bet.br domain and facial recognition
The regulated online betting market will generate R$20 billion in taxes and fees in 2025, said the ANJL (National Association of Games and Lotteries) in a note sent to the press. The value includes federal grants and a 12% tax on GGR (Gross Gaming Revenue), in addition to traditional taxes from the service sector, which will increase the total tax burden to 36%. The entity states that Brazil will consolidate itself as the largest market in Latin America and will compete for the position of 3rd or 4th largest in the world in the sector. Here is it (PDF – 292 kB).
ANJL also estimates the generation of 60 thousand direct and indirect jobs with the regulation. According to the association, betting companies will provide an extensive chain of services in areas such as information technology, advertising, media, advocacy and compliance.
From January onwards, only companies with the “.bet.br” domain will be able to legally operate in Brazil. The SPA-MF (Prizes and Betting Secretariat of the Ministry of Finance) will require companies to obtain prior authorization and pay a federal grant, in addition to a tax on gross betting revenue.
Sector regulation advanced in November, when SPA-MF published the rules for registering “bet.br” domains. Interested companies must request registration after receiving operating authorization, with an analysis period of up to 150 days by the government.
The process is managed by NIC.br (Ponto BR Information and Coordination Center) and requires that requests correspond to the total number of trademarks authorized by SPA-MF. Companies will also need to implement DNSSEC (Domain Name System Security Extensions) to ensure domain security.
In case of denial, operators will be able to appeal within 15 days. Any disputes over domain names will be resolved by SACI-Adm (Administrative System for Internet Conflicts Relating to Domain Names).
After approval, companies will have 5 days to register their domains in SPA-MF’s Sigap (Betting Management System). The system will integrate all information about betting operations in the country.
Other questions
Anatel admits technical difficulties in blocking illegal websites, the main challenge highlighted by ANJL. According to the association, international experience shows that high tax burdens favor clandestine operators.
The text of Law 14,790/2023 allocates part of the proceeds to the Ministry of Health for the prevention and treatment of gaming addiction. Authorized companies must implement tools to identify and block bettors with compulsive behavior.
The regulation also establishes partnerships with international entities to monitor possible manipulations of sports results. The inspection system will be permanent, focusing on protecting minors and preventing fraud.
