The arrangement arises from an ordinance of the Secretary of Awards and Betting.
Brazil.- The Secretary of Awards and Betting (SPA), under the Ministry of Finance, published an ordinance that prohibits the operation of betting sites without authorization or that have not submitted an application to the federal government by October 1. Therefore, they can only operate with prior authorization to be issued by the agency itself.
Betting companies offering fixed odds that have not yet requested authorization to operate will have their operations suspended starting October 1. According to the Ordinance, from next month until the end of December, only betting companies that are already operating and have requested authorization to explore the fixed odds lottery modality will be able to operate.
From October, companies that did not request authorization will be classified as illegal until the Ministry of Finance allows them to operate. Betting sites operating in Brazil without authorization will be subject to the penalties provided by law.
Individuals or legal entities that requested authorization, but were not yet operating, will have to wait to start operations in January, if they obtain the authorization from the ministry and after meeting all the requirements.
The expectation is that the Ministry of Finance will complete the analysis process of the first applications received and that from January 1, 2025, when the regulated betting market in Brazil will begin, only companies that comply with the law and regulatory ordinances will continue to act.
Also according to the ministry, approved companies must pay the grant of R$30m (USD5.3m) this year to start operating and, from January, they must also comply with all the norms to combat fraud, money laundering, and abusive advertising, among other demands.
In an official note, the Secretary of Awards and Betting of the Ministry of Finance, Regis Dudena, stated that the department will maintain the adjustment period until the end of December only for those who have already demonstrated that "they want to act according to the law."
"Many police operations involving companies operating in the betting market in a criminal manner have come to light. This was the way we found to not wait until January to start separating the wheat from the chaff," said Dudena, adding: "We want to protect the mental, financial, and physical health of the bettor, preventing the activities of companies that use sports betting and online gaming as a means to commit fraud and money laundering."
The secretary also reinforced that the adjustment period "cannot be used to violate existing laws," such as Money Laundering Laws, Financial Crimes Laws, or the Consumer Protection Code, for example. "In analyzing the authorization applications, we are taking into account the commission of illicit acts," he affirmed.
See also: The Brazilian Ministry of Finance launched an awareness campaign about the online betting and gaming market
According to the Ministry of Finance, active companies that have already requested authorization have until September 30 to report which brands are active and what websites they use during this adjustment period.
"From January, all authorized companies will use the Brazilian internet domain, with the extension 'bet.br'," indicated the ministry in an official note.
