Online Gambling Laws in Brazil

Brazil is known for being passionate about football and the lottery, but what's the legal situation of betting on such activities in the country? Is it legal to bet on top casino games in Brazil?

The legalities of online gambling in Brazil have been notoriously changeable in recent years, with many gambling activities being banned and permitted or vice versa. Here, we look at Brazil's gambling laws to see what's allowed and what's not, along with a bit of history and what the future might hold.

Gambling Regulation by Casino Type

Brazil's stance on gambling, in general, is notable in its lack of clarity and abundance of many grey areas, making it difficult to know where you stand in terms of what's permitted and what's not within the country.

Complicating matters further is that legislation never seems to stay in place for very long, so what's legal at one point might no longer be legal just a short time later. Just when it seems that progress is being made, setbacks occur. However, this is to be expected in a country where gambling laws are still in a state of flux. Here, we break it all down by gambling type, covering casino gaming, poker gameplay, bingo, lotteries and other popular activities.

Casino Games

Casino gaming has been illegal in Brazil since 1941 with the introduction of that year's Criminal Contravention Act, which effectively outlawed all forms of gambling except sports betting. The law as it applied to casinos 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 new proposals for reintroducing casinos to existing hotels and developing a new casino resort in Mato Grosso.

In terms of online casino gaming, the country's laws are still in development, with the government having tried (and failed) three times to prevent offshore gambling companies from taking bets from Brazilian residents. This doesn't stop a large chunk of the population of Brazil from joining and playing games at popular online casinos, which are estimated to net around $1.5 billion in the process.

Poker

Since poker is classed as a game of skill, which Brazil's laws do not cover, playing it in the country is legal. However, only tournament-style games with set buy-ins are permitted unlike cash games.

Bingo

Bingo gaming 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, the Zico Act was officially overturned, and the last bingo halls were shut down in 2007. However, Brazilians can access bingo casinos online, playing a wide range of games with Portuguese support, though the Brazilian government actively tries to prevent this.

Lotteries

Lotteries have a long history in Brazil, with the first legal lotteries held in the country in 1784. Nothing changed for lotteries in the country 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 lottery.

In 2018, the law was amended to permit the operation of an online and offline instant lottery, Lotex, which would be run by IGT and Scientific Games. However, the two gaming 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, meaning the country's states could each choose their lottery providers. Residents of Brazil can access online lottery games for real money via the various offshore online casinos, but again, this is not government-approved.

Jogo do Bicho

Speaking of lotteries, one state in Brazil has recognized its autonomy and licensed and regulated a very specific type of lottery that has become extremely popular in the region. 

Dating back to 1892, Paraiba's Jogo do Bicho (literally translating to 'animal game') features various animals, each of which represents a set of numbers, e.g. 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 deep-seated in Brazilian culture. For example, the elephant represents death, monkeys represent cunning, and lions are strong.

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

Brazil Sports Betting Laws

Sports betting was one of the few gambling activities that managed to avoid the blanket ban by the Criminal Contravention Act of 1941. As a result, it's been commonplace to bet on sports in Brazil. Still, horse racing at the track is the most clearly legislated and popular activity, with Betsson Suaposta, the country's licensed Brazil-based horse racing betting provider online.

In 2018, the law was expanded to include land-based sports betting and permits online fixed-odds sports betting 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.

Gambling Age Restriction

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

Tax Regulation

Brazil's gambling tax regulation system emphasizes what's classed as legal gambling, most notably, the lotteries. 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 also 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 in Brazil since 1784, with only a brief six-year intermission from 1961 while the national lottery was being legislated for. In 1875, the Sao Paolo Jockey Club was formed, which put horse racing on the map for the country, with the Criminal Contravention Act of 1941 ignoring horse racing gambling entirely and Law 7291 of 1984 explicitly stating its legality.

While all forms of gambling were at one point legal in Brazil, 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, with the last bingo halls and slot parlours closing in 2007.

Casino gaming has faced numerous obstacles in Brazil, 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 that permits fixed-odds online sports betting, with the National Bank for Economic and Social Development and the Ministry of Economy both commissioned to manage the privatization of the activity. 2019 saw a potential instant lottery. Lotex planned to be offered by IGT and Scientific Games in the country, but both providers pulled out in 2020.

Key Facts

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

Most Brazilians get their online casino gaming at offshore sites despite numerous attempts by the government to crack down on operators accessing the protected market. The future looks bright for online gambling in Brazil, especially considering the country's latest moves to regulate online sports betting and possibly permit the development of casino resorts.