The Secretary of Awards and Betting announced which companies have definitive or partial authorization to operate up to three brands. Additionally, Regis Dudena commented on the expectations for the implementation of the regulated market.
Brazil.- Since January 1st, 66 companies have been authorized to operate in the Brazilian electronic fixed-odds betting market. The official list was released by the Secretary of Awards and Betting (SPA), linked to the Ministry of Finance.
The operating authorizations were formalized in the December 31, 2024 edition of the Official Gazette of the Union. In total, 14 companies obtained definitive permits, and one of them received more than one authorization order due to the number of brands it intends to operate: each authorization can contain up to three brands, requiring a new license to operate another set of up to three brands.
Also according to the SPA, another 52 companies received provisional authorizations subject to the submission of information or documents, such as the betting system certification. These companies have up to 60 days to present the mandatory technical certificates. If not complied, their license may be suspended for 90 days and, if the irregularity persists, the authorization will be definitively revoked.
To operate electronic betting in Brazil, each company must pay a grant of R$ 30m (USD 4.8m). With this authorization, the use of up to three brands per company is allowed. In total, the grants generated revenues exceeding R$ 2.000m (USD 323.5m). The number of authorized companies represents 58 percent of the 113 initial applications submitted.
According to the SPA, companies operating without official authorization will be subject to Internet blocking and will not be able to carry out financial transactions. "Financial and payment institutions are now prohibited from carrying out transactions aimed at conducting fixed-odds betting with legal entities that have not received authorization. Those companies not authorized, but which continue to have active domains offering fixed-odds betting services, are considered illegal and will be blocked," detailed the secretary's note.
Regarding the companies that still need to submit more information to obtain a definitive authorization, Regis Dudena, head of the SPA explained: "Some of these companies were not approved because their authorization applications were deficient. For example, out of the 100 required documents, some submitted only 20."
The secretary was emphatic in stating that the government is not obligated to grant operating authorization to any company and that the management makes a cautious assessment. "If we have sufficient elements to, for example, have legitimate doubts about the conduct of that company, the suitability of that company, or the illegal behavior of that company, we will not be able to grant this authorization based on this provision of the law," he said.
Regarding the challenges for the first year of regulation, Dudena did not give a deadline for all unauthorized betting houses to be offline and says that a joint effort with financial institutions and the Central Bank is needed to corner the illegal ones.
See also: Online betting in Brazil: most citizens are in favor of strong regulation and supervision of the sector
"The elimination of domains will be necessary, but it will have to be complemented. It is not the only way to prevent illegal companies from operating in Brazil," he affirmed. "We are trying to find a way to end the sending of money abroad," he added.
Regarding the expected revenues and measures to tighten regulation in response to the increase in betting among the poorer sectors, he explained that it is necessary to wait for sector data to understand its size and direction. "I imagine that, after the first year, we will have enough data to assess the impact of the measures and, if necessary, promote changes. We are attentive to correct restrictions that are not effective or to reinforce norms in areas that need greater control," Dudena reported.
Definitively approved brands:
