Ministry of Sports Clarifies Approval Process for Licenses

The Brazilian sports betting and iGaming landscape is undergoing significant changes with the introduction of MESP Ordinance 98/2024. This newly issued framework provides a clear path for operators to obtain licensing, marking a pivotal step in the regulation of Brazil’s fast-growing gambling market. If you’re an operator or stakeholder, this is essential information that will shape your future in Brazil’s booming gambling sector. Discover how these new guidelines will impact your business and the evolving regulatory environment.

Brazil Clarifies Sports Betting and iGaming Approval Process Under New 2024 Ordinance

Brazil’s Ministry of Sports has published MESP Ordinance 98/2024, setting a comprehensive framework for the approval of sports betting and iGaming licenses. This ordinance clarifies the process for operators seeking to enter Brazil’s rapidly expanding gambling market, ensuring transparency and efficiency in the review and approval of applications.

Under this ordinance, the National Sports Betting Secretariat (SNE) is at the forefront of the approval process. The SNE is tasked with overseeing the review of all applications, supported by a technical team responsible for evaluating requests for licensing. This three-member team will document their findings in the Betting Management System (Sigap) before progressing the applications for final approval.

Key Points:

1. National Sports Betting Secretariat Leadership: The SNE leads the application review process, ensuring clear oversight and consistent procedures.
2. Sigap System: All licensing decisions are recorded in the Betting Management System, ensuring transparency and traceability.
3. Technical Review Team: A three-member technical team handles assessments, with the ability to request additional documentation when necessary.

The review process follows the guidelines established in Interministerial Ordinance 28/2024, which assigns the Secretariat of Prizes and Betting (SPA) as the entity responsible for conducting the initial evaluations. After this preliminary review by the SPA, the applications proceed to the Ministry of Sports for final approval. In the event of discrepancies or disputes, the Attorney General’s Office will intervene to deliver a final ruling.

The ordinance also emphasizes the role of the Directorate of Monitoring and Evaluation of Sports Betting. This body forms the technical review team, which includes a director and two general coordinators—one from the Monitoring Department and another from the Integrity Department. These key figures are responsible for thoroughly assessing applications, seeking further information when required, and documenting all decisions within Sigap. This ensures that every step of the process is accounted for and accessible for auditing or future reference.

In tandem with this regulatory framework, the Brazilian government, under President Lula, has recently announced plans to introduce new restrictions on payment methods for sports betting and online gambling platforms. The intent behind these restrictions is to better regulate the country’s fast-growing gambling sector. While specific measures have yet to be confirmed, discussions between the Ministry of Finance and authorized sports betting operators are scheduled to begin this week. These talks, according to Dário Durigan, executive secretary of the Ministry of Finance, will focus on addressing payment restrictions for operators that remain active within Brazil’s borders.

The Path Forward for Brazil’s Gambling Industry

This comprehensive approval process outlined in MESP Ordinance 98/2024 is a critical development for operators looking to navigate Brazil’s burgeoning gambling market. With sports betting and iGaming expected to see continued growth in the region, the clarity provided by these regulations is essential for fostering a well-regulated and sustainable industry.

The introduction of restrictions on payments, while still under discussion, signals the government’s intention to tighten control over financial flows within the gambling sector. Operators will need to stay informed and adapt their business models to comply with upcoming changes.

Brazil’s sports betting and iGaming approval process has been significantly streamlined with the publication of MESP Ordinance 98/2024. The clear structure for reviewing applications, the involvement of multiple regulatory bodies, and the focus on transparency through the Sigap system are vital steps in shaping Brazil’s regulated gambling market. As discussions on payment restrictions unfold, operators must remain proactive and compliant to ensure continued success in one of the world’s most promising gambling markets.