Companies that have not applied for accreditation will be deregistered next month.
Brazil.- Six new companies have submitted their applications to operate in the country in compliance with Ordinance 1.475 published by the Secretariat of Prizes and Betting (SPA), under the Ministry of Finance last Tuesday, September 17.
The companies that submitted an application are:
According to the new regulations, betting companies that have not applied for an authorization to operate, before October 1, will see their activities suspended until they obtain it.
On the other hand, it was clarified that, companies that had already applied for authorization but were not operating, must wait until January 2025 to start their activities, provided they meet all the requirements set by law.
As of the issuance of the regulation, 113 companies had submitted the required documentation for obtaining the license.
It is worth noting that other license applications that were submitted before the initial deadline of August 20 include many of Brazil's largest operators. The ministry previously warned that those who submitted their application after this date would face additional delays and possible penalties.
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 operate.
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 requirements.
In an official note, the Secretary of Prizes 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 not to 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 the 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.
According to the Ministry of Finance, active companies that have already applied for 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'," the ministry indicated in an official note.
Also according to the ministry, companies that did not apply for authorization can no longer offer fixed-odds betting, but must keep their websites available until October 10, to allow bettors to withdraw their resources. "From October 11, these websites and their respective applications will be prohibited and will be removed," stated the Ministry of Finance, reiterating that, for this, the ministry will intensify dialogue with the Ministry of Justice and Public Security (MJSP), the Central Bank, and the National Telecommunications Agency.
See also: Regis Dudena explained how the fight against illegal betting sites in Brazil will be carried out from January 2025
The government resolution was celebrated by various actors in the industry who see in this regulation a mechanism to start building a better regulated and more transparent market from next month.
However, some voices were raised against it. Such is the case of the president of the Sports, Lottery, and Entertainment Commission of the Brazilian Bar Association Rio de Janeiro section, Paulo Horn, who stated that "the measure violates the principle of legality, the hierarchy of norms, legal security, and the limits of regulatory power."
