The History of Betting in Brazil
Betting has been a part of Brazilian culture for centuries, evolving through periods of prohibition and legalization, reflecting the country’s social and economic transformations. In recent years, the sector has undergone a significant shift, driven by technological advancements and growing public interest.
To understand the evolution of sports betting in Brazil, it’s essential to explore its historical background and the legislative changes over time.
Colonial Period to 1920: The First Betting Games
Betting arrived in Brazil in the 16th century, brought by Europeans along with card games, dice, and other forms of entertainment. In the 18th century, the first betting houses emerged, largely fueled by the popularity of horse racing, especially among the upper class.
In 1892, Baron João Batista Viana Drummond created the famous “Jogo do Bicho” (Animal Game) to increase revenue for the Rio de Janeiro zoo he managed. The game was simple: upon purchasing a ticket, the visitor received an image of one of 25 animals. A daily draw determined the winning animal, awarding a cash prize to the corresponding ticket holder. Though illegal, the game quickly spread and remains in practice today.
Another key milestone was the creation of Brazil’s first official lottery, the Federal Lottery, in 1917. However, that same year, President Venceslau Brás banned casinos and games of chance throughout the country. Betting continued to exist underground.
1930–1945: The Golden Age of Casinos
Under President Getúlio Vargas, casinos were legalized in 1934, ushering in the “Golden Age” of gambling in Brazil. Casinos boosted the economy, drove tourism, and generated thousands of jobs.
These betting venues became entertainment hubs, offering not only roulette, blackjack, baccarat, and poker but also large-scale music and art shows. Dance dinners, orchestras, and performances by renowned artists were part of the experience.
Famous establishments like Cassino Atlântico, Copacabana Palace Casino, and Cassino da Urca in Rio de Janeiro, as well as Monte Serrat (Baixada Santista) and Cassino Paulista (São Paulo), became iconic. Poços de Caldas, with over 20 operational casinos, earned the nickname “Brazilian Las Vegas.”
These luxurious establishments attracted international figures such as Albert Einstein, Janis Joplin, Frank Sinatra, Orson Welles, and Walt Disney, who watched performances by Brazilian stars like Carmen Miranda, Emilinha Borba, Dalva de Oliveira, and Grande Otelo.
1946: The Ban on Gambling
On April 30, 1946, President Eurico Gaspar Dutra signed Decree-Law No. 9,215, banning gambling and casino operations in Brazil.
Regulation Attempts in the 20th Century
Despite the ban, discussions about regulating gambling never stopped. Between the 1960s and 1990s, the government attempted, without success, to reinstate the sector under controlled conditions. Political challenges and lack of consensus on the social impact of gambling hindered progress.
It was only in the 21st century that the issue regained momentum, setting the stage for today’s legal framework.
Recent Developments
Even under prohibition, the betting market continued to operate illegally, moving significant sums each year. To curb illegal gambling, protect bettors, and integrate this industry into the formal economy, several legislative initiatives were proposed.
The most successful was Law No. 13,756, signed by President Michel Temer on December 12, 2018. It authorized sports betting and online gambling in Brazil, allowing a four-year period for complete market regulation. However, progress stalled in the following years.
In 2023, the topic resurfaced strongly. After months of debate, the law was sanctioned by the President as Law No. 14,790/23. It imposes taxes on companies and bettors, sets operational rules, and outlines revenue distribution.
Furthermore, in the second half of 2024, the Ministry of Finance’s Secretariat of Prizes and Betting (SPA) issued several regulatory ordinances, effective as of January 2025.
What Does the Law Say Now?
As of January 2025, only betting companies authorized to operate in Brazil may continue their activities, provided they pay the license fee and comply with regulatory requirements.
From the start of the regulatory discussions, the Brazilian Institute for Responsible Gaming (IBJR) has actively advocated for clear rules in the betting sector. With the new law in force, the IBJR remains committed to promoting a safe environment for bettors, fostering a sustainable market, and contributing positively to society.
Key Regulatory Pillars
- Authorization to Operate
- Only licensed betting companies can operate in Brazil as of January 2025.
- Companies must pay a R$30 million license fee.
- Each license allows up to three betting brands; additional licenses must be paid for extra brands.
- Payments
- Only payment methods authorized by the Central Bank are allowed.
- Withdrawals must be transferred to the bettor’s account within two hours.
- Deposits must come from accounts under the same name as the bettor.
- Credit card use, as well as deposits via cash or bank slip, is prohibited.
- Anti-Money Laundering (SPA Ordinance No. 1,147/2024)
- Mandatory player identification with documents and facial recognition with liveness detection.
- Registration of a bank account in the bettor’s name for all transactions.
- No cash transactions allowed.
- Security (SPA Ordinance No. 722/2024)
- Strict controls to prevent unauthorized access.
- Cyberattack protection.
- Secure server locations and regular backups.
- Business continuity plans and uninterrupted power supply.
- Monitoring
- The SPA may access platforms remotely or in person for supervision.
- Betting operators must implement the Bet Management System (Sigap) for SPA oversight.
- Player Registration and Protection
- Mandatory registration with facial recognition.
- Betting by minors under 18 is strictly prohibited.
- Monitoring of user behavior to prevent gambling addiction and risky conduct.
