The Brazilian Ministry of Finance announced that from October 1, 2024, online fixed-odds betting companies that have not applied for a business license in Brazil will be mandatorily suspended nationwide. The decree was published in the Federal Official Gazette on September 17, through the Secretariat of Gambling and Prizes under Decree No. 1475/2024.
According to the regulation, only online betting companies that had commenced operations before the publication date of the regulation (September 16, 2024) and had submitted an application for a business license to the Brazilian government can continue operations until the end of this year.
From January 1, 2025, a strictly regulated online betting market will officially start in Brazil, where only companies that comply with the legal regulations set by the Brazilian Ministry of Finance will be allowed to operate legally within the country.
During the initial 90-day priority window period of the regulatory agency, a total of 113 betting applications were received. Operators who applied during this period are guaranteed to obtain a license before January 1. The Secretariat of Prizes and Betting (SPA), under the Ministry of Finance, is currently analyzing these applications.
Companies authorized to conduct online betting activities in Brazil must also pay a business procedure fee of 30 million Brazilian reais to the government before they can start operating legally in Brazil. Moreover, from January 1 next year, these companies must comply with all established rules set by the Brazilian government, including cooperation in the prevention and combating of cyber fraud, money laundering, and the proliferation of spam advertising.
For online betting companies that have not yet applied for a license, the government's deadline has passed. However, these operators must keep their online betting websites running normally until October 10, so that bettors can withdraw the amounts previously deposited for online betting. After this date, websites that have not applied for a business license from the government will be forcibly taken offline.
Unlicensed operators will face severe sanctions starting next January, including a fine of 2 billion Brazilian reais (269.8 million pounds/320.3 million euros/354 million US dollars) and a prohibition on applying for a license for up to 10 years.
In addition, from October 1, all legal operators must use the Bet.br domain to facilitate differentiation from illegal sites. The domain change will enable SPA to easily detect illegal operators.
The Ministry of Finance will cooperate with the Ministry of Justice and Public Security, the Central Bank of Brazil, and the National Telecommunications Agency Anatel, among other agencies, to ensure that unlicensed sites are taken offline from October 11.
Meanwhile, payments in the Brazilian gambling market will also be restricted: the Brazilian government will block payments involving offshore companies made through Pix, an instant payment service controlled by the Central Bank, which is widely used in the gambling market.
The government is also negotiating with websites like Google and Meta to block illegal operators. Plans are also in place to work with internet service providers to identify and remove addresses of overseas websites.
