Brazil Sets October Deadline for Betting Operators to Seek Authorization Ahead of January 2025 Regulation

The Prizes and Betting Secretariat (SPA) in Brazil has established a crucial deadline for betting companies that wish to operate legally in the country. Operators must apply for authorization by October 1, 2024, if they intend to continue operations. Any company that has not requested authorization by this date will have its operations suspended until it receives official permission from the SPA.

This new regulation means that, as of October 2024, only betting operators that are currently operational and have submitted their authorization requests to explore the fixed-odds lottery betting modality will be allowed to continue their activities. Those who have not completed this process through the Ministry of Finance’s betting management system, SIGAP, will be classified as illegal operators until they obtain authorization from the Treasury.

This regulatory shift comes in preparation for Brazil’s regulated betting market, which will officially launch on January 1, 2025. At that time, only operators that comply with Brazilian laws and ordinances will be permitted to operate in the country. The demand to operate in the region has already surged, with *Gaming America* reporting in late August that Brazil had received 114 applications for iGaming licenses.

Regis Dudena, Secretary of Prizes and Bets of the Ministry of Finance, highlighted the importance of this transition period, stating, “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, in accordance with Brazilian rules.” He further explained that this proactive move was intended to address the criminal activities associated with some betting companies: “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 not wait until January to start separating the wheat from the chaff.”

Dudena emphasized the government’s commitment to safeguarding bettors, saying, “We want to protect the mental, financial, and physical health of bettors, preventing the activities of companies that use sports betting and online games as a means of committing fraud and money laundering.”

He also made it clear that the adaptation period was not an excuse for operators to evade existing laws, such as the Money Laundering Law (Law No. 9,613/1998), the Financial Crimes Law (Law No. 7,492/1986), the Consumer Protection Code, and the Child and Adolescent Statute (ECA). “When analyzing authorization requests, we are taking into account the commission of illegal acts,” Dudena added.

In related news from South America, the Argentine Football Association (AFA) recently announced the renewal and expansion of its partnership with the gaming software provider SmartSoft.

This regulatory push marks a significant development for Brazil’s betting market, as the country moves closer to establishing a legal framework designed to curb illegal activities while promoting fair and responsible gambling.

By fLEXI tEAM