Online gambling is rapidly evolving in Brazil and other LatAm countries, drawing in more and more users. In 2024, the revenue generated from online gambling in Brazil was 1.96 billion USD. And this happened in an unregulated market. Now, with opening the new regulated market, operators need to follow the changes by gaining a local license. They also need to select the right iGaming provider, gaming content, payment methods, etc. So, without further ado, let’s find out how to start online casino in Brazil.
If you need a more general guide about how to get things going, you should check out our main article – How to start an online casino.
What You Need to Know about Brazilian Users?
We’ve mentioned in our previous articles that Brazilian users aren’t immature. Getting into their minds and tapping into what they want is not so simple. You need to have a lot of information about their behavior. You should ask about their preferences and get more info on how they make decisions when choosing a platform for playing.
This is what defines your know-how of the market and predicts whether you’ll be able to provide the content and the service that’ll entice them. So, to cut it short, before you start online casino in Brazil you need to conduct research on the market. If it won’t be a primary one, you can conduct secondary research and use the new data already collected by someone else.
ENV Media has conducted research where they asked Brazilian players what were the most significant, key factors that helped them to choose the online gaming operator. It turns out that attractive bonuses, fast and secure payments, reliable customer support, and a user-friendly interface were the most dominant factors. You can see detailed information about respondents’ relevant share of voices in Image 1.
Image 1 – Key Factors For Choosing an Online Casino Website in Brazil
Moreover, it is widely known that Brazilian players are drawn to various online casino verticals, with sports betting maintaining its position as the top choice. Over two-thirds of respondents (66.6%) favor sports betting. Check out the article about Brazil’s Betting Boom, and you can also read about the popularity of sports betting in Latin America.
It is followed closely by lottery games hitting 64.4%, but this doesn’t belong to online casino verticals, so we’ve left it out from image 2, given below. For more information, please read our article about the most popular iGaming content in Latin America.
Image 2 – Most Popular iGaming Content on Online Casino Websites in Brazil
On the other hand, casino games also hold a strong place in the Brazilian market, with 43.3% of adult players identifying as fans. Among specific game types, scratch cards (36%), card games (31%), and slots (31%) also share a significant part. This emphasizes that Brazilian users prefer gaming platforms that involve all gaming verticals, offering diversity and multiple choices. This is something you must consider before you launch your online casino in Brazil.
How Can You Start Online Casino in Brazil?
If you are planning to start online casino in Brazil, the software solutions that you need are the casino software (otherwise game aggregation software) and the iGaming platform.
There are different ways you can take to acquire these solutions. Well, one of them implies that you have to design and create your platform from scratch (known as the self-service solution). But, frankly speaking, it’s too much weight to take because it requires massive funds and quite a long time.
So, that cuts it to getting software from the iGaming provider. And, at this point, the simplest and most effective methods of getting the iGaming platform are turnkey solution and white label solution (For more information, you can read the articles: 1. How to start a turnkey online casino; and 2. How to start white label casino).
But, if you already have the iGaming platform, you need to acquire online casino software with the gaming content. So, you need to contact the casino aggregator software provider. Aggregators are iGaming solution providers who sell casino software with a load of games that they have acquired from the game providers themselves.
Thus, once you get the game aggregation software, you are good to go. But, choosing the right provider requires some research and dedication. So, to ease this process for you, we’ve compiled a list of key things you should consider when choosing an online casino content provider.
What You Should Consider When Selecting Online Casino Software Provider for the Brazilian Market
When planning to launch an online casino in Brazil, choosing the provider that matches your specific needs is essential. The first step is identifying what matters most to you before starting your research. This includes your goals, requirements, and expectations from the provider.
You know that you’re targeting the Brazilian iGaming market. This focus reduces the number of providers you’ll need to evaluate. Instead, you can look for a provider with deep expertise in the Brazilian market and content tailored to local players.
Experience in the Brazilian Market
Yes, you must partner with an experienced provider with rich Brazilian market know-how. And this is what you must consider before starting a casino in Brazil. The provider must know the ups and downs of the market and have the experience of working with the operators who are active in the Brazilian market.
So, let’s outline, here’s what you need to discern:
- Is the provider you are considering working with the operators who are active in the Brazilian Market? If yes, you can also ask how many and which ones.
- Check the reputation and credibility of the online casino software providers you are considering.
- Read online reviews and user comments about the provider on igaming forums. You can also contact their operators to gain more information.
Wide Selection of Casino Games
Well, having casino software alone isn’t enough. The success of any operator heavily relies on the games it offers. You need a diverse game selection to attract and keep users engaged.
A well-rounded platform should offer a mix of classic casino games such as blackjack, roulette, and poker and a wide range of slot games with various themes like adventure, fantasy, and mythology.
Besides the game variety, it’s also crucial to check the quality of the games the aggregator offers. Are they from trusted providers with a good reputation in the industry?
The number of games also matters. Players must be able to search and browse through several different options. Well, here are the statistics about the number of casino games in some leading online casinos in Brazil.
Image 3 – Amount of Casino Games on Leading Online Casinos in Brazil
As you can see, the numbers vary, with a minimum of 450 options to an overwhelming 10 934 titles. Well, more is better, but remember that there’s no need to have the quantity of games above and beyond the bar. You can head to the most optimal choice, choosing the diversity and quality of the games over the quantity.
Upgaming’s award-winning game aggregation software offers over 12,000 games from +180 top-tier providers. The games are packed according to multiple genres, themes, and criteria. Thus, ultimately, you have the competitive edge in diversity, quality, and quantity, too.
Localized Content
Before you start online casino in Brazil you need to know the users’ preferences and how important it is to have localized content.
When it comes to casino games, localization means offering the games that are popular in the market. Another popular strategy is to translate some of the popular slot games into the native language of the audience. It can also encompass live casino streaming in the native language.
But remember that the software can only be translated by the game provider itself (not the aggregator).
Most of the well-known online casinos in Brazil have a couple of popular games that are translated into Portuguese. The ENV Media has tracked how many popular games are available on various brands’ platforms. And they also found out the amount of localized ones. Check out the results in Image 4.
Image 4 – Localization of Popular Casino Games on various online casinos in Brazil
Well, this tells us that if you want to gain the players’ sympathy and loyalty, you need to have localized content. It’s not the only factor that establishes user loyalty. But, if you plan to start your online casino in Brazil without any concern about localization, you won’t be successful.
Back Office
A reliable and user-friendly back office is a must-have when starting an online casino in Brazil. It’s the central hub where you manage your operations.
An efficient back office will allow you to generate custom reports easily. This lets you track important metrics, such as player behavior, revenue streams, etc.
The back office enables you to design and update your platform, set up new games, and adjust settings without needing constant support from the provider. Integrated CRM functionality is another feature to prioritize, as it helps you manage player relationships, personalize offers, and improve customer retention.
Ultimately, a good back office empowers you to take control of your operations with minimal hassle. It’s not just about functionality; it’s about giving you the flexibility to run your online casino in Brazil smoothly and efficiently.
Payments
Payments are a cornerstone of any successful online casino, especially in Brazil, where players expect fast, secure, and reliable transaction options. So, before you start online casino in Brazil you need to have localized and popular payment methods that new legislation allows to be used.
One payment method you can’t overlook is PIX. As a real-time payment system embraced by millions of Brazilians, PIX enables instant and seamless transactions. Whether players are depositing funds or cashing out their winnings, PIX ensures the process is quick and hassle-free. Furthermore, PIX payments are governed and executed by the Central Bank of Brazil. This ensures that gambling transactions will only be executed on legal grounds. Thus, the safety of the player’s funds is guaranteed.
Mobile Compatibility
In Brazil, the smartphone penetration rate is 78%. Almost 94% of Brazilian users have access to the internet via smartphones. Mobile gaming dominates. So, you must start your online casino in Brazil with a platform that is compatible with mobile devices.
When selecting a casino software provider, check if their platform is optimized for mobile use. This includes a responsive design that adapts to different screen sizes and ensures smooth gameplay, whether players use Android or iOS devices.
Additionally, a mobile-friendly platform should offer all the same features as the desktop version. Players should be able to register, deposit funds, play games, and withdraw winnings without limitations.
Licensing
To start online casino in Brazil, navigating the licensing and regulatory landscape is a critical step. The Brazilian iGaming market is regulated, and obtaining a license is mandatory for legal operation.
The licensing fee is 30 million Brazilian Reals (approximately 6 million USD), with each license valid for five years. Applications are accepted during a designated annual window, and operators must monitor official announcements to submit their paperwork on time.
Beyond that, you need to meet several regulatory requirements to start online casino in Brazil. These are designed to ensure fairness, transparency, and player protection. A key prerequisite is establishing a local presence by opening an office in Brazil.
Operators are also subject to significant tax obligations, including:
- A 12% tax on Gross Gaming Revenue (GGR).
- A 15% Corporate Income Tax.
- An additional 10% tax on profits exceeding 240,000 Brazilian Reals (about $43,600 USD) annually.
Compliance with data protection laws is another critical aspect. Operators must obtain clear consent from players before collecting or sharing personal information. Moreover, to launch online casino in Brazil, you need to ensure that data is used solely for legal purposes, supported by a dedicated customer service team for managing player concerns.
Finally, promoting safe gambling practices is a regulatory priority. Tools like self-exclusion options and cooling-off periods are required to help players manage their gaming habits responsibly. For more information about licensing in Brazil, check out our article about Brazil Gambling Regulation.
How much does it cost to start online casino in Brazil?
Regulatory and Operational Costs
Starting an online casino in Brazil involves important financial responsibilities, including regulatory and operational expenses.
- The licensing fee alone is 30 million Brazilian Reals (approximately $6 million USD), which grants you a license valid for 5 years.
- Additionally, operators must pay a 12% tax on their Gross Gaming Revenue (GGR)
- 15% Corporate Income Tax
- And an extra 10% tax on profits exceeding 240,000 Brazilian Real (roughly $43,600 USD) annually.
Costs Associated with Platform and Software
In addition to taxes and licensing fees, you must consider the expenses related to acquiring an iGaming platform and/or casino software. costs associated with iGaming platform and/or casino software acquisition.
- These costs can vary widely depending on the provider and specific requirements, typically ranging from $10,000 to $50,000 USD.
- Moreover, you are also sharing a percentage of your Gross Gaming Revenue (GGR) with the software provider, with the exact rate determined by the terms of the agreement.
After the launch, the bulk of expenses will shift to marketing efforts (Read this – How much should you spend on online casino marketing). If you want more insights on marketing in the LatAm region, check out our article: Online Casino Marketing in Latin America.
Conclusion
Starting an online casino in Brazil is an exciting opportunity in a rapidly growing market, but it comes with its unique challenges. From understanding the preferences of Brazilian players to navigating regulatory landscapes and choosing the right software provider, every step requires careful planning and execution.
The key to success lies in offering localized, high-quality gaming content, ensuring seamless mobile compatibility, integrating secure and popular payment methods like PIX, and adhering to Brazil’s stringent licensing requirements. While the initial investment and operational costs may seem daunting, the potential for growth and revenue in this emerging market is immense.
With strategic planning, the right partnerships, and a deep understanding of Brazilian player behavior, you can start your online casino in Brazil and thrive in this dynamic environment.
