This paper presents a novel Magneto-rheological (MR) brake system that can self-regulate the output braking torques. The proposed MR brake can generate a braking torque at a critical rotation speed without an external power source, sensors, or controllers, making it a simple and cost-effective device. The brake system consists of a rotary disk, permanent magnets, springs, and MR fluid. The permanent magnets are attached to the rotary disk via the springs, and they move outward through grooves with two different gap distances along the radial direction of the stator due to the centrifugal force. Thus, the position of the magnets is dependent on the spin speed, and it can determine the magnetic fields applied to MR fluids. Proper design of the stator geometry gives the system unique torque characteristics. To show the performance of an MR brake system, the electromagnetic characteristics of the system are analyzed, and the torques generated by the brake are calculated using the result of the electromagnetic analysis. Using a baseline model, a parametric study is conducted to investigate how the design parameters (geometric shapes and material selection) affect the performance of the brake system. After the simulation study, a prototype brake system is constructed and its performance is experimentally evaluated. The experimental results show that the prototype produced the maximum torque of 1.2 N m at the rotational speed of 100 rpm. The results demonstrate the feasibility of the proposed MR brake as a speed regulator in rotating systems.