The online gambling industry in Brazil is undergoing significant transformation. Regis Dutra, the Minister of the Treasury's Bonus and Betting Department (SPA), announced that as of January 1, 2025, only licensed gambling companies will be able to operate legally.
Out of the 114 companies that applied for the right to operate in the Brazilian gambling market, 71 have been granted permission to pay a franchise fee of 30 million Brazilian Reais (approximately 4.9 million USD).
Currently, 16 companies have paid, totaling 480 million Brazilian Reais (approximately 79.5 million USD).
Dutra stated at the Parliamentary Inquiry Committee (CPI) hearing that the government has established strict control and inspection measures, and most companies have basically met the requirements of the Treasury Department.
The deadline for applying for operating licenses was October 1, 2023, after which authorities quickly shut down 5,283 illegal gambling websites and plan to continue blocking more domains.
According to the new regulations, starting from January 2025, authorized gambling companies must use the Brazilian exclusive domain "bet.br" and ensure strict identity verification procedures to prevent fraudulent activities.
Licensed operators may use up to three brands, with a licensing period of five years. Additionally, all licensed companies must be registered in Brazil to ensure transparency and accountability, and the government will have complete access to all ownership structures and detailed information about company executives.
Advertising targeting minors is also strictly regulated. The government prohibits gambling advertisements from appearing in environments related to children and adolescents and has stopped gambling sponsorships of underage sports teams to protect minors from gambling influences.
Dutra emphasized that the implementation of a comprehensive regulatory framework will promote transparency and sustainable growth in the Brazilian online gambling market. By strengthening consumer protection, combating fraudulent activities, and ensuring responsible gambling behavior, Brazil is laying the foundation for a safe and regulated gambling industry.
