How Brazil's SPA Regulated Latin America's Largest Betting Market Before the Ban

Author:

10.06.2026

How Brazil's SPA licensed and policed betting under Law 14,790 until Provisional Measure 1.394 shut licensed sites on 6 October 2026.

Brazil's iGaming Enforcement Era: How the SPA Is Reshaping Latin America's Largest Regulated Market

From Grey Market to Regulated Arena

Update, October 2026: Brazil has since shut the licensed market this article describes. Provisional Measure 1.394 of 25 September 2026 bans fixed-odds betting, including online casino games, and ends every licence within 30 days with no refund of the fee. Licensed sites went offline on 6 October 2026, when the Ministry of Justice said only one of the 188 licensed sites was still running. Congress has 120 days to approve or reject the measure, and our report on Brazil's betting and online casino ban sets out the dates and refunds. The rest of this article, first published in June 2026, records how the regulated market worked.

For nearly eight decades, gambling in Brazil existed in a legal grey zone. Offshore operators accepted bets from millions of Brazilian players, the state collected little in tax revenue, and players had no formal protections. The regulated market was built to end that, but the grey market did not go away: between 25 September and 6 October 2026 alone, the government referred 13,241 illegal sites for blocking, according to the same Ministry of Justice release.

Law No. 14,790/2023, known informally as the "Lei das Apostas" or Betting Law, signed on 29 December 2023, established the legal framework for online sports betting and casino-style gaming. The regulated market officially launched on 1 January 2025. Companies already operating had until the end of 2024 to obtain authorisation, and from January 2025 only authorised companies could operate. The provisional measure has since revoked most of the law's articles, including its licensing, tax and advertising rules.

Until September 2026, the question for operators in the market's second year was less how to obtain a licence than how to keep it. The provisional measure then barred new authorisations and set aside applications still pending on 25 September.

What Powers Did the SPA Have?

The body that oversaw the market was the Secretaria de Prêmios e Apostas (SPA), a department of Brazil's Ministry of Finance. It could issue licences, conduct audits, impose fines and revoke operating permissions.

In its review of the market's first year, published in January 2026, the SPA reported 132 inspection processes covering 78 operators and 133 betting brands, and 80 administrative sanction proceedings. Provisional Measure 1.394 suspended every sanction proceeding not yet decided on 25 September 2026 and will archive them if operators meet their wind-down obligations on time.

Self-exclusion was another focus. A national self-exclusion platform launched in December 2025, and more than 217,000 people asked to be blocked in its first 40 days, according to SPA figures reported by Yogonet.

Licensed operators reported gross gaming revenue of about R$37 billion in 2025, according to the same SPA review. After the ban, the SPA gave former licensees until 15 December 2026 to settle their financial and regulatory obligations.

What Did a Brazilian Betting Licence Require and Cost?

Brazil ran a single federal authorisation for fixed-odds betting. It covered sports betting and online games, including casino-style games, so operators did not need separate licences for each product.

The entry terms came from the law and from Ordinance SPA/MF No. 827 of 21 May 2024, as summarised by law firm Demarest:

Licence term	Requirement
Authorisation fee	R$30 million, not refunded under the 2026 ban
Duration	5 years
Paid-up capital	At least R$30 million
Financial reserve	At least R$5 million
Brazilian partner	At least 20% of the capital
Brands per licence	Up to 3, under one company

The tax on gross gaming revenue was 12% when the market opened. Complementary Law 224, signed on 26 December 2025, raised it to 13% in 2026 and set 14% for 2027 and 15% from 2028. Players' net winnings above the first band of the annual income tax table were taxed at 15%.

Foreign groups could apply only through a company set up in Brazil in which a Brazilian partner held at least 20% of the capital. Brazilian branches of foreign companies were not eligible.

KYC, Payments, and the PIX-First Economy

Brazil's compliance framework placed heavy demands on identity verification. Under Ordinance SPA/MF No. 722 of 2 May 2024, which set the technical and security requirements for betting systems, operators had to verify players using their individual taxpayer registration number (CPF) combined with facial recognition before activating an account.

On the payments side, the rules leaned on PIX, the country's instant payment system. Under Ordinance SPA/MF No. 615 of 16 April 2024, bets could only be paid by PIX, bank transfer, debit card or prepaid card. Cash, credit cards, boletos, cheques and crypto-assets were banned, and deposits had to come from accounts held by the player.

The SPA's Sigap system collected data from operators on player activity and financial flows. Since 25 September 2026, the provisional measure has barred banks and payment institutions, including instant payment schemes, from processing betting transactions other than those needed to wind down and refund players, and former licensees must keep reporting balances and refunds through Sigap.

How the SPA Planned to Regulate B2B Suppliers

In early 2026 the SPA turned to the supply chain. Since the regulated market opened, B2B supplier relationships had been treated as an operator compliance matter: if a supplier was not certified, the operator's licence was at risk, but the supplier itself had no direct relationship with the regulator.

The SPA opened a public consultation on draft supplier recognition rules on 4 February 2026, running until 23 March 2026. The draft covered five categories of supplier:

Betting systems
Betting platforms
Online games and live studios
Identity verification services
Data and statistics providers for sports betting

Recognition would have been valid for 3 years while the requirements were met, and licensed operators could only have contracted recognised suppliers. The final rules had not been published when this article first appeared in June 2026, and the SPA called a public hearing on the draft for 25 June 2026. The ban of 25 September then ended the operator licences the scheme was built around.

Political Pressure and What Happens Next

Political pressure built through 2026. On 9 February, President Luiz Inácio Lula da Silva said his government would take very serious measures against betting companies, which he said were taking money from poor people. On 25 September he signed the provisional measure that banned them.

Brazil's advertising rules had required that only licensed operators could promote their services, that advertising must not target minors, and that promotional content must not suggest betting could solve financial problems. The provisional measure replaced them with a ban on all betting advertising and sponsorship, with 10 days to remove existing material.

By January 2026, 79 companies held authorisation to operate, according to the SPA, and by September Brazil had issued 85 authorisations covering 188 licensed websites. Latin America also featured in other operators' plans: in mid-2026 the Ontario operator Betty named the region as a future target.

The measure's future now rests with Congress and the courts. A joint committee was appointed on 30 September, amendments can be filed until 13 October, and the measure lapses unless Congress approves it within 120 days, according to the Congress record of the measure. On 28 September the industry associations ANJL and IBJR asked the Supreme Court to suspend it, and as of 8 October the court had not ruled.

Frequently Asked Questions

No. Provisional Measure 1.394 of 25 September 2026 bans fixed-odds betting, including online casino games, and licensed sites had to go offline on 6 October 2026. That day the Ministry of Justice said only one of the 188 licensed sites was still running.

The authorisation fee was R$30 million for a five-year term, covering up to three brands. Operators also needed at least R$30 million in paid-up capital and a R$5 million financial reserve. The 2026 ban does not refund the fee.

The SPA, part of the Ministry of Finance, licensed and supervised betting operators, collected their data through the Sigap system and launched a national self-exclusion platform in December 2025. Its January 2026 review counted 80 administrative sanction proceedings and about R$37 billion in gross gaming revenue for 2025.

It can. The measure lapses unless Congress approves it within 120 days, and lawmakers can also amend or reject it. On 28 September 2026 the industry associations ANJL and IBJR asked the Supreme Court to suspend it, and the court had not ruled by 8 October.

Author

Paolo Pellegrini|iGaming News Editor

Paolo Pellegrini is Casino Adventurer's news editor, based in Rome, where he was born and raised. He covers the stories shaping the online gambling industry, from new regulations and tax changes to market openings and major deals, and always explains what they mean for players. He's naturally curious and starts every morning with the news and a strong espresso. Outside work, he's a lifelong AS Roma fan and loves cooking for friends on Sundays.