Six More Brazil Operators Rush to Apply for Licences

Six More Brazilian Gambling Operators Apply for Licences Following Government’s Enforcement Warning

Brazil’s gambling market is approaching a significant regulatory shift, and operators are racing to meet compliance.

This week, six more Brazilian gambling operators applied for licences after the country’s Ministry of Finance issued a stern warning. From 1 October 2024, any operator without an application will be treated as illegal under the new regulatory framework. The warning has spurred action from gambling companies looking to avoid severe penalties.

The Brazilian government has been finalising the framework for its regulated gambling market, which is set to launch on 1 January 2025. As of now, 119 operators have submitted their applications to the Prizes and Betting Secretariat (SPA), including six new applicants: BRX Gaming, Amplexus Corporation, Nexus International, JBD Comunicação e Tecnologia, Boa Sorte Prêmios, and Wudy Pay Correspondente de Instituição Financeira.

This last-minute rush comes after the SPA committed to processing 113 licence applications by November 2024. While it’s uncertain whether the six new applicants will be approved in time for the market launch, they can continue to operate legally after 1 October as long as their applications are pending.

The urgency is clear. Brazil’s Ministry of Finance has reiterated that operators who miss the deadline will face additional delays, penalties, and the risk of being classified as illegal. Companies such as Betano, bet365, Sportingbet, Betfair, Caesars, and Betsson have already secured their positions in the burgeoning market. These operators, alongside 113 others, anticipate joining what experts predict will become the second-largest gaming market in the world, only behind the United States.

The regulations include strict criteria: operators must establish local headquarters, ensure at least 20% of ownership is Brazilian, and maintain reserves of BRL5 million (€829,500).

With Brazil’s regulated gambling market approaching its official launch, the pressure is mounting for operators to meet licensing deadlines. The country’s regulatory framework aims to create a safe and structured environment for iGaming and betting, transforming Brazil into a global powerhouse for gaming. As more operators seek licences, the market is poised for massive growth, with significant opportunities and challenges on the horizon.