Gambling Laws in Brazil

Brazil is known for being passionate about football and the lottery, but are residents legally allowed to bet on these activities? Online gambling laws have been notoriously changeable in recent years, with many activities being banned.

Which Gambling Activities Are Legal in Brazil?

Brazil's stance on gambling is notable in its lack of clarity and abundance of grey areas. This makes it difficult to know where you stand regarding what's permitted within the country. Complicating matters further is that legislation never seems to stay in place for very long. Just when it seems that progress is being made - setbacks occur.

Wagering on Offline and Online Casino Games

Casino gaming has been illegal in Brazil since 1941 with the introduction of the Criminal Contravention Act. This effectively outlawed all forms of gambling except sports betting. The law was further solidified in 1946 with a presidential decree explicitly making casinos illegal. There is a possibility that the law will be changed to accommodate proposals for reintroducing casinos to existing hotels and developing a new resort in Mato Grosso.

In terms of online casinos, the country's laws are still in development. The government has tried (and failed) three times to prevent offshore gambling companies from taking bets from residents. This doesn't stop a large chunk of the population from playing games at foreign popular online casinos.

Playing Real Money Poker

Since poker is classed as a game of skill which Brazil's laws do not cover - playing it is legal. However, only tournament-style games with set buy-ins are permitted. There are plenty of online gambling sites which accept players from the country. So residents can still get their poker fix, though it's technically illegal at the moment.

Betting on Bingo

Bingo has had a bumpy ride in Brazil, having gone through the phases of being legal and then illegal in a short time. 1993 Decree 981 (the Zico Act) made playing the game at bingo halls legal. However, in 2000 Decree 2,574 was put forward to overturn the Zico Act. 2004 saw the Zico Act officially overturned, and the last bingo halls were shut down in 2007. Residents can access bingo casinos online, playing a wide range of games with Portuguese support, though the Brazilian government actively tries to prevent this.

Purchasing Lottery Tickets

Lotteries have a long history in Brazil, with the first legal draws held in 1784. Nothing changed until 1961 when the law made private lotteries illegal while new laws were being formed. In 1967 Brazilian bank Caixa was legally awarded the right to run the country's national lotto.

In 2018 the law was amended to permit the operation of an online and offline instant lottery, which would be run by IGT and Scientific Games. However, the two providers backed out of the deal in late 2020, purportedly because of a court ruling that revealed Caixa's monopoly on the national lottery was unconstitutional. This meant that the country's states could each choose their lottery providers. Residents can play online lottery games for real money via the various offshore sites, but this is not government-approved.

Jogo do Bicho Lotto

One state in Brazil has recognised its autonomy and licensed a specific type of game that has become extremely popular in the region. 

Dating back to 1892 Paraiba's Jogo do Bicho (translating to 'animal game') features various animals, each of which represents a set of numbers. For example, Avestruz (ostrich) represents the first set of numbers, which are 1 to 4. However, the 25 animals of Jogo do Bicho also represent various aspects of life, many of which are deep-seated in Brazilian culture.

One theory for the game's massive popularity is that it represents social mobility in a country plagued by corruption. The operators of the game fund many social enterprises such as hospitals, orphanages and factories.

Is Sports Betting Legal in Brazil?

This was one of the few gambling activities that managed to avoid the blanket ban by the Criminal Contravention Act of 1941. Horse racing at the track is the most clearly legislated and popular activity. Betsson Suaposta is the country's licensed Brazil-based betting provider online.

In 2018 the law was expanded to include land-based sports betting and fixed-odds to be managed jointly by the National Bank for Economic and Social Development and the Ministry of Economy. As a result, licences are expected to be awarded to private sports betting operators.

What's the Minimum Age to Gamble in Brazil?

In Brazil, bets are classed as contracts and as a result, no one under 18 is allowed to participate in gambling.

Brazillian Gambling Tax Regulations - Do Players Pay?

The gambling tax regulation system emphasises what's classed as legal gambling, most notably the lotteries. Therefore lottery winners pay 13.8% tax on their winnings, but since the advertised prize is the net amount after tax, many aren't aware of it.

Sports betting is subject to taxation of 30% of gross winnings, charged with the personal income tax at the end of the tax year. However, some effort is being made to reduce this to 20% and offset the stake amounts.

History of Gambling Laws in Brazil

Lotteries have been running since 1784, with only a brief six-year intermission from 1961 while the national draw was being legislated.

In 1875 the Sao Paolo Jockey Club was formed which put horse racing on the map. The Criminal Contravention Act of 1941 ignored horse race betting entirely and Law 7291 of 1984 explicitly stated its legality.

While all forms of gambling were at one point legal, 1941's Criminal Contravention Act put a stop to all but sports and horse racing betting. Land-based bingo and slot machines were permitted in 1993 with the Zico Act and expanded in 1998 with the Pelé law, but both were overturned in 2004.

Casino gaming has faced numerous obstacles, including illegal poker games. The government failed thrice to prevent offshore casino sites from taking bets from Brazilian residents from 2008 to 2010.

In 2018 a law was passed to permit fixed-odds online sports betting. The National Bank for Economic and Social Development and the Ministry of Economy were both commissioned to manage the privatisation of the activity. 

2019 saw a potential instant lottery. Lotex planned to be offered by IGT and Scientific Games but both providers pulled out in 2020.

Key Facts

Brazil's laws on gambling are in a state of flux, with legislation still in the process of being developed for a range of activities. Sports betting, trackside horse racing and lotteries have remained legal and popular for the most part. However, bingo and casino gaming have had a rough ride, with both activities still illegal.

Most residents get their online casino fix at offshore sites despite numerous attempts by the government to crack down on this. The future looks bright though, considering the country's latest moves to regulate online sports betting and permit the development of casino resorts.