Game On: Fast Updates on iGaming January 29

Brazil’s regulatory landscape continues to evolve, with major developments shaping the iGaming industry. Here’s a quick roundup of the latest news:Loterj Ordered to Implement

Geolocation or Face Fines

The Federal Supreme Court (STF) has ruled that the Rio de Janeiro State Lottery (Loterj) must enforce geolocation measures to prevent bets from being placed outside the state of Rio de Janeiro. Within this period, those operators must cease their operation/activities unless they demonstrate compliance with the territoriality criteria established by law and the injunction. Failure to comply could result in fines of R$500,000 per day for Loterj and R$50,000 for its president. Loterj has requested an extension, citing implementation challenges, but the court has reinforced that compliance is mandatory.

9,600 Illegal Betting Sites Blocked in Four Months

Brazil’s Ministry of Treasury has intensified efforts against unlicensed operators, blocking approximately 9,600 illegal betting sites since October 2024. In contrast, only 76 companies hold valid licences to operate in the country. The crackdown follows a strengthened cooperation agreement with Anatel, aimed at increasing efficiency in blocking non-compliant domains.

New Tax Guidelines for Gambling Winnings in Brazil

The Federal Revenue Service (Receita Federal) has introduced updated Personal Income Tax (IRPF) guidelines for online gambling and sports betting winnings. Licensed operators must now deduct a 15% tax at source on winnings above BRL 2,824 (€530). Meanwhile, players must self-declare earnings from unlicensed international platforms, with taxes due monthly via the Carnê-Leão system. Additional clarity is expected on taxation rules for foreign lotteries and other grey areas.

Brazil Advances iGaming Regulation with Focus on B2B Registration

During a Sportingtech roundtable discussion at ICE Barcelona, Regis Dudena, Secretary of Prizes and Betting at Brazil’s Ministry of Finance, outlined plans for a B2B provider registration system. While full licensing for B2B providers is not yet on the agenda, certification will be introduced to ensure compliance. The SPA is also ramping up efforts to block offshore operators and collaborating with international regulators like the UK Gambling Commission to refine enforcement strategies.