Geolocation and State Licenses Spark Debate in Brazil’s Betting Market

Brazil.– November 13, 2025 – www.zonadeazar.com  The issue of geolocation and state licensing takes center stage in Brazil’s iGaming industry, as operators, legal experts, and regulators discuss digital boundaries and compliance challenges.

Overview

The use of geolocation technology in state-licensed betting platforms is dividing opinions across the market.
While some advocate for stricter territorial controls to ensure compliance with local licenses, others argue that recent court rulings support a more flexible interpretation that encourages competition and growth.

Details / Context

Law 14.790/2023 authorizes states and the Federal District to operate lotteries within their borders, yet it fails to establish mandatory digital verification tools to enforce that limitation.
As a result, many state-licensed betting sites remain accessible nationwide, undermining the territorial principle and raising questions about regulatory enforcement.

Experts warn that the absence of effective geolocation could expose players to legal and financial risks, as those betting outside the licensing state may lack legal recourse in disputes or unpaid winnings.

Key Topics

Recent Supreme Federal Court (STF) decisions allowing the same economic group to operate lotteries in multiple states and advertise nationally have reignited discussions on state autonomy versus federal uniformity.
Industry leaders call for technical and legislative alignment, especially regarding digital verification standards and data protection compliance.

The uncertainty also carries fiscal consequences, as tax revenue losses for the federal government could reach millions annually.

Future Outlook

The industry awaits clear guidelines from the Ministry of Finance and the Secretariat of Prizes and Betting (SPA), which are developing control mechanisms to align state-level operations with the federal regulatory framework.
Geolocation is increasingly viewed as a cornerstone of transparency and integrity, ensuring fair competition and consumer protection in Brazil’s regulated market.

🔗 Edited by: @_fonta www.zonadeazar.com