Brazil Cracks Down on Unauthorized Betting Companies in October

Brazil to Suspend Unauthorized Betting Companies from October Ahead of Market Regulation

Brazil’s betting landscape is on the brink of a major transformation, with new regulations set to reshape the industry. The Prizes and Betting Secretariat (SPA) has announced strict measures to curb unauthorized betting operations starting this October. Discover how these changes will impact betting companies and what it means for the future of Brazil’s gambling market. Learn more about the upcoming regulatory framework and the steps companies must take to comply.

The Prizes and Betting Secretariat (SPA) in Brazil has set an October 1 deadline for betting companies to seek authorization to operate in the country. Any operator that fails to apply for permission through the Ministry of Finance’s betting management system, SIGAP, will face suspension until they obtain the necessary approval. This move comes as Brazil prepares for the launch of its regulated betting market, set to begin on January 1, 2025.

Only operators that are already active and have applied for authorization to offer fixed-odds lottery betting before the deadline will be allowed to continue operations. Those who miss the deadline will be classified as illegal and will not be permitted to operate until they secure authorization from the Treasury. This measure is aimed at tightening control over the market and ensuring compliance with Brazilian laws.

Interest in entering the Brazilian market has been high, with reports indicating that 114 applications for iGaming licenses were received by the end of August. This surge reflects the lucrative potential of the Brazilian market, which is poised to become one of the largest regulated betting sectors in the world.

Regis Dudena, Secretary of Prizes and Bets at the Ministry of Finance, emphasized the importance of adhering to Brazilian laws during this adaptation period. “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,” said Dudena. He added that this interim period aims to differentiate compliant operators from those who engage in illegal activities.

Dudena pointed out that recent police operations have exposed companies involved in criminal activities within the betting sector, including fraud and money laundering. “This was the way we found to not wait until January to start separating the wheat from the chaff,” he said. The goal is to protect the mental, financial, and physical health of bettors by preventing companies that use betting as a front for illegal activities from operating.

He also highlighted that the adaptation period does not exempt companies from adhering to existing laws, such as the Money Laundering Law, Financial Crimes Law, Consumer Protection Code, and the Child and Adolescent Statute. “When analyzing authorization requests, we are taking into account the commission of illegal acts,” Dudena stated, reinforcing the government’s commitment to uphold strict regulatory standards.

As Brazil gears up for its fully regulated betting market in 2025, the SPA’s decision to suspend unauthorized operators from October is a critical step in cleaning up the sector. These new measures not only aim to protect consumers but also to establish a transparent and compliant betting environment. Operators looking to participate in Brazil’s burgeoning market must act swiftly to secure their position or risk being left behind. The countdown to a regulated market has begun, and only those who play by the rules will thrive.