Brazil Implements New iGaming Regulations: Unlicensed Gambling Sites Targeted for Shutdown
In preparation for the launch of its regulated betting market on January 1, 2025, Brazil’s Ministry of Finance is stepping up enforcement against unlicensed gambling operators. The Prizes and Betting Secretariat (SPA) has announced a crackdown on unauthorised sites, with plans to block any platforms not compliant with the new regulatory framework.
Warning Issued to Unauthorised Operators
The SPA, in a push for consumer protection, has warned that websites operating outside its list of authorised platforms will face immediate blocking. The government is moving swiftly to enforce the law, ensuring that only operators who have applied for licenses will be allowed to continue their services in Brazil.
Regis Dudena, SPA’s Secretary, highlighted the importance of bettors engaging with regulated operators. He explained that using unlicensed platforms not only exposes users to potential fraud but also undermines their financial security. “For the well-being of bettors, it’s essential to operate within a regulated system where the rules are respected,” Dudena noted. He emphasised the importance of distinguishing between legal and illegal operators, urging bettors to avoid companies that disregard compliance standards.
License Applications and the Compliance Process
Currently, 96 companies with 210 brands have been granted permission to continue operating in the country. To further identify and block illegal operators, the SPA has been monitoring online activity and social media channels, reporting 2,040 suspicious domains to the National Telecommunications Agency (Anatel) for immediate action.
The Ministry of Finance is committed to finalising the first batch of license applications by December 2024. Companies that are approved under this process will need to pay a licensing fee of R$30 million (€6.54 million) and ensure they adhere to all existing regulations.
Transition to a Fully Regulated Market
For operators not yet authorised, there is still a path to legitimacy. These companies must submit the required documentation to the Ministry of Finance, after which the government will have 150 days to review each application. Once approved, operators will have a 30-day window to pay the necessary fees and officially enter the regulated market starting in January 2025.
Finance Minister Fernando Haddad stressed that moving forward, no company will be allowed to operate without first receiving approval. Dario Durigan, the Ministry’s Executive Secretary, reinforced this stance, stating, “Only fully compliant companies will be allowed to stay in business. It’s crucial that users recognise the importance of betting on licensed platforms, ensuring a safe and fair experience.”
Blocking Unlicensed Websites and Advertising Bans
The Brazilian government is taking aggressive action against unauthorised gambling platforms, with Anatel working alongside telecommunications companies to block access to illegal sites. Over 20,000 telecommunications firms have been notified to proceed with the takedown of non-compliant gambling domains. While the speed of these actions may vary based on technical factors, Anatel’s president, Carlos Baigorri, confirmed that the agency is closely monitoring the situation to ensure effective blocks.
Additionally, unauthorised operators will face a ban on advertising in Brazil, including sponsorship deals with sports clubs and teams, as part of the broader enforcement measures.
Probationary Period for Licensed Operators
Even for businesses that have secured temporary authorisation, the path to a full license will be closely scrutinised. These companies are subject to a probationary period, and any violations of Brazilian law could result in their applications being revoked.
Brazil’s new regulatory framework marks a significant step towards creating a secure and transparent betting environment. By clamping down on illegal operators and promoting compliance, the government aims to protect consumers and establish a stable market for gambling activities. The enforcement of these new rules sends a clear message: only operators who follow the law will have the privilege of serving the Brazilian market.
