Since May, the Secretariat has received 114 requests for authorization to operate, and the analysis of these requests should be completed by the end of 2024. The number of requests exceeded expectations, and interested companies must comply with strict requirements, such as declaring the origin of capital and identifying directors.
As of January 2025, unauthorized companies will not be able to operate in Brazil, not even to advertise. Companies that obtain authorization must use the domain “bet.br” for their betting sites.
“Authorization will be an ongoing process, and companies that violate the rules face severe fines, which can reach up to R$2 billion (US$ 358m), and may lose their authorization to operate in Brazil. Although the collection for 2024 will be limited to the value of the concessions, estimated at up to R$3.4 billion (US$ 608m), future tax collection will depend on the activity of the companies and the volume of bets”, explained the Secretary.
Regis Dudena also emphasized the measures to protect bettors. The Secretariat is implementing rules to monitor the behavior of bettors and impose limits on spending and playing time, with the aim of combating gambling addiction.
Companies must offer self-limitation mechanisms and warn users about potentially harmful behavior. Currently, there is no national registry of bettors, but there are plans to develop a system in the future.
Regarding payment methods, only electronic methods, such as Pix and debit cards, are allowed, while the use of credit cards is prohibited to prevent bettors from becoming over-indebted.
Dudena stressed that, although the regulated sector will begin operating in January, existing legislation on crimes such as money laundering and fraud will remain in force: “The authorities will continue to combat illegal activities, separating legitimate companies from criminal ones. Regulation is seen as essential to guarantee a safe and transparent environment for betting, protecting both bettors and the country’s economy.”
In the interview, Regis spoke about the coordination of the Secretariat of Prizes and Betting with other ministries involved in the regulation of betting. He highlighted the importance of collaboration with the Ministry of Health and the Ministry of Sports.
“The Secretariat is forming a working group with the Ministry of Health to address health issues related to gambling addiction, including the creation of a self-test to identify problems associated with gambling,” revealed Dudena.
“With the Ministry of Sports, the focus is on sports integrity and the prevention of match-fixing, as defined by sports legislation. In addition to these ministries, there is also interaction with the Ministry of Justice and the Central Bank to ensure effective coordination and a clear understanding of the regulatory and oversight powers of the Secretariat,” he explained.
Regarding expectations for the regulated betting market in Brazil from 2025 onwards, Dudena believes that regulation will provide greater protection for bettors and help to ward off criminal activities, such as fraud and money laundering.
He also foresees significant potential for the economic sector and suggests that the market may undergo consolidation, with mergers and acquisitions, as companies adjust to the new rules. Regulation should encourage investment, as long as investors are aware that they must operate within the law to avoid sanctions.
Source: GMB