Brazil’s Finance Ministry has announced that starting October 1, all companies that haven’t applied for a license to join the forthcoming betting market will be suspended.
This deadline is part of Brazil’s plan to launch its regulated betting market by January 1, 2025, under the federal framework for fixed-odds betting and online gambling.
“Only companies that are currently operating and have requested authorization by September 30, 2024, may continue until December 2024. As of January 1, 2025, only fully compliant operators will be allowed to continue,” the Ministry’s statement read.
On August 20, the preliminary licensing process for the betting market closed, with 113 companies submitting applications to the federal betting administration system (SIGAP).
These applications are now being reviewed by the Betting and Prizes Secretariat (SPA), which is responsible for ensuring that businesses meet the technical requirements for the betting market.
Regis Dudena, General Secretary of the SPA, confirmed: “We will maintain the adaptation period until the end of December only for those who have already demonstrated that they want to act in accordance with the law, and in accordance with Brazilian rules.”
The SPA also reminded applicants that full compliance with Law No. 13,756/2018 and Law No. 14,790/2023 is required, particularly concerning fraud prevention, money laundering, and IT security. These regulatory measures will be enforced from the market’s launch.
To complete the licensing process for 2025, qualifying companies must provide an advance payment of R$30 million (€4.8 million) to the Ministry of Finance by the end of 2024.
Operators that fail to apply by the September 30 deadline will be classified as illegal from October 1, 2024, and must cease operations. The SPA will give unlicensed operators until October 10 to return funds to customers, close accounts, and exit the market.
Companies continuing to operate without authorization will face legal action by the SPA, Ministry of Finance, and relevant authorities for breaching Brazil’s new gambling laws.
These measures aim to protect consumers from illegal or fraudulent practices in the betting industry and ensure adherence to Brazil’s regulatory standards.
Additionally, the update requires that by September 30, 2024, all licensed companies must submit details of their trademarks and websites during the transition phase.
Regis Dudena concluded: “Many police operations involving companies that operate in the betting market in a criminal manner have come to light. This was the way we found to avoid waiting until January to start separating the wheat from the chaff.
“We want to protect the mental, financial, and physical health of bettors by preventing the activities of companies that use sports betting and online games as a means of committing fraud and money laundering.”
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