Brazil approves 71 online betting operators

Bruna Garcia December 12, 2024

SiGMA news

A significant milestone has been reached in Brazil’s booming online betting industry. Out of the 114 companies that applied for licenses to work in the regulated online betting market in Brazil, 71 were authorised to pay the R$ 30 million (USD 4.9 million) concession fee to operate, the Secretary of Prizes and Bets (SPA) of the Ministry of Finance, Regis Dudena, reported this Tuesday (10). As of January 1st, 2025, only duly legalised betting companies will be allowed to operate.

Dudena was heard yesterday at the Parliamentary Inquiry Committee (CPI) investigating betting companies to explain how the government deals with the betting market, focusing on control and inspection measures. The Secretary stated that the companies complied with almost all the requirements demanded by the Ministry of Finance to operate properly.

“So, the Ministry of Finance has already notified 71 companies, and they have 30 days, from the date of notification, to comply with these final requirements. Out of these, 16 have already paid the concession fee, a total amount of R$ 480 million (USD 79.5 million) to the Ministry of Finance,” he said. “They started being notified on the 19th of last month, so they have until December 18th or 19th to comply with this concession payment, which is why some have already complied and some have not yet complied,” he continued.

The deadline for companies to submit the certification request started in May and ended in August. During this period, 114 companies submitted the request to the Ministry. In September, the Ministry of Finance published an ordinance determining the suspension of fixed-odds betting companies’ operations that failed to submit the authorisation request to operate in the country.

Blocked websites

The deadline for authorisation requests expired on October 1st. Since October 11th, authorities have taken swift action to shut down websites of operators that failed to comply. If a company has requested the license but was not yet operating, it will have to continue waiting to begin operations in January, if authorises the activity.

“Since then, we have had three batches of domains identified by our department, with the help of the Federal Police and other criminal prosecution agencies. We have already taken down a total of 5,283 domains. There were three batches: one of 2,027, another of 1,443, and a third of 1,813. So, 5,283 websites have already been shut down, and we have another batch that must be sent to Anatel (National Telecommunications Agency) for shutting down,” said Dudena.

As of January 1, 2025, only authorised betting companies will be allowed to operate in the country, with exclusive Brazilian internet domains with the extension “bet.br”. Authorised betting houses that pay the fee will be able to have up to three brands for five years.

The use of fraudulent identification, such as fake CPF numbers, to place bets or establish betting companies has been a concern raised during the CPI. According to the Secretary, after January 1st, the government’s new regulatory framework will address this issue with reliable data for regulatory oversight. By requiring licensed operators to adhere to strict identity verification procedures, the government aims to prevent and detect fraudulent activities.

National companies

According to Dudena, the new online betting regulations mandate that all licensed operators must be domestically incorporated companies. With this measure, which ensures greater transparency and accountability, the government will have full visibility into the ownership structure, including the identity of shareholders, ultimate beneficiaries, and directors of each licensed company.

Advertising

Dudena also spoke of the suspension of advertising for online gambling games aimed at minors. The government has implemented measures to restrict advertising for online gambling games in environments frequented by children and adolescents. This includes prohibiting sponsorships of youth sports teams and other similar initiatives.

“One example I can give is a football team that had its under-17 team sponsored by a betting company. We notified this company, and they withdrew the sponsorship because this is the typical example of an activity aimed at children and adolescents that, in this context, cannot exist,” he said.

Brazil’s online betting market is undergoing a significant transformation with the implementation of a comprehensive regulatory framework. With 71 companies authorized to operate and strict measures in place to ensure responsible gambling practices, consumer protection, and government oversight, the industry is poised for safe and sustainable growth. This new regulatory environment fosters a transparent marketplace, combats fraudulent activities, and safeguards minors, paving the way for a flourishing and responsible online betting sector in Brazil.

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