Brazil Approves 71 Online Gambling Licenses

Brazil’s highly anticipated regulated online gambling market is set to launch on January 1, 2024, marking a new era.

The Secretaria de Prêmios e Apostas (SPA) has approved 71 licenses from a total of 144 applications, setting strict standards.

With a five-year licensing framework, these operators will transform Brazil’s gambling landscape while ensuring compliance and oversight.

Dive into the details of this monumental step for Brazil’s gambling industry and what lies ahead for operators and players.

Brazil Approves 71 Online Gambling Licenses for Historic Market Launch

Key Points

1. 71 Licenses Approved: SPA grants licenses to compliant operators, ensuring robust regulation and oversight for the online gambling market.
2. Strict Compliance Measures: Operators must meet IT security, AML protocols, and responsible gambling standards to gain approval.
3. Future Legislative Changes: The market launch may see further updates, including potential sin taxes and land-based casino legalization.

Brazil Approves 71 Online Gambling Licenses for Market Launch on January 1

The Secretaria de Prêmios e Apostas (SPA) has taken a decisive step toward launching Brazil’s regulated online gambling market by approving 71 licenses ahead of the January 1, 2024, launch. The regulator reviewed 144 applications submitted before the October deadline, ensuring all approved operators met stringent compliance requirements.

A New Era for Brazilian Gambling

SPA President Regis Dudena confirmed the approval during a presentation to the Parliamentary Commission of Inquiry (CPI). He highlighted that the approved operators had demonstrated compliance with key criteria, including:

• IT security and payment processing standards
• Licensing and anti-money laundering (AML) protocols
• Responsible gambling measures

Each licensed operator must pay a R$30m (€5m) fee for a five-year license, allowing up to three skins per license. Dudena reported that 16 companies have already paid the fee, contributing R$480m to the Ministry of Finance.

“Starting January 1, all companies operating in Brazil will need to be Brazilian entities established under Brazilian law. This ensures complete oversight of their shareholders, ultimate beneficiaries, and executives,” Dudena explained.

Stricter Rules to Protect Consumers

The SPA’s regulations prioritize consumer protection, with measures such as:

• A ban on using welfare funds for gambling
• Prohibiting gambling advertising targeting under-18s in sports sponsorships and media
• A new ordinance regulating the transfer of gambling data

These measures ensure a safer and more transparent gambling environment, addressing concerns from lawmakers and the public.

What Lies Ahead for the Market?

While the January launch marks a historic milestone, the regulatory framework remains dynamic. The Senate is currently considering sin taxes for certain gambling verticals, a proposal introduced by Senator Eduardo Braga of the Movimiento Democrático Brasileño.

In parallel, debates over land-based casino legalization continue. Bill No. 2,234/2022 proposes legalizing casinos, horseracing, bingo, and instant win games, potentially overturning the 1946 ban on casinos. However, this legislation has been postponed for evaluation by the Ministry of Health, which will assess its potential impact on Brazil’s United Health System (SUS) and Unified Social Assistance System (SUAS).

Opportunities for Licensed Operators

With 71 licenses issued, Brazil’s regulated market is poised for significant growth. Approved operators now have the opportunity to capitalize on a market eager for legal and secure gambling options. By adhering to the SPA’s strict standards, these companies can establish themselves as trusted leaders in Brazil’s gambling sector.

Operators already active in Brazil’s grey market must align with the new framework by January 1 to avoid sanctions. This includes establishing Brazilian entities and complying with advertising, AML, and responsible gambling regulations.

The SPA’s approval of 71 online gambling licenses represents a landmark achievement for Brazil’s gambling industry. By ensuring rigorous compliance, the regulator has set the stage for a robust, transparent, and consumer-focused market.

While the January 1 launch is just the beginning, Brazil’s approach to regulation signals a commitment to sustainable growth and player protection. As operators prepare for the launch, the focus remains on compliance and innovation to capture a share of this burgeoning market.

With further legislative changes on the horizon, including potential sin taxes and the legalization of land-based casinos, the future of gambling in Brazil is filled with opportunity and transformation. For operators, players, and stakeholders, the countdown to January 1 is just the start of a new chapter in Brazil’s gambling history.