The Prizes and Betting Secretariat (SPA) in Brazil has announced a crucial deadline for betting companies seeking to operate in the country. Effective from October 1, 2024, operators who have not applied for authorization through the Ministry of Finance’s betting management system, SIGAP, will face a suspension of their operations. This new regulation marks a significant step towards the regulated betting market, which is set to officially launch on January 1, 2025.
Deadline and Authorization Process
Operators must secure authorization from the SPA by the October 1 deadline to continue their operations. This move is intended to ensure that only those operators who have adhered to Brazilian regulations and have requested authorization before the cutoff date can continue to operate. Any operators who fail to apply for authorization by this date will be classified as illegal until they receive the necessary approval from the Treasury.
The Regulated Market and Compliance
The regulated betting market in Brazil is scheduled to go live on January 1, 2025. From this date forward, only operators who comply with the established laws and ordinances will be permitted to conduct business. The new regulations are designed to create a fair and transparent betting environment, addressing concerns related to illegal activities and ensuring compliance with legal standards.
High Demand and Licensing Applications
Interest in operating within the Brazilian betting market has been notably high. According to a report from Gaming America in late August, Brazil has already received 114 applications for iGaming licenses. This surge in applications underscores the growing attractiveness of the Brazilian market for betting operators.
Secretary Regis Dudena’s Statement
Regis Dudena, Secretary of Prizes and Bets of the Ministry of Finance, emphasized that the adaptation period extending until the end of December 2024 is exclusively for operators who have already shown intent to comply with Brazilian regulations. He highlighted that this measure aims to address the issues of companies involved in illegal activities, including fraud and money laundering. The goal is to protect bettors’ mental, financial, and physical well-being by filtering out companies that misuse sports betting and online gaming platforms.
Legal Compliance and Oversight
Secretary Dudena stressed that the adaptation period should not be seen as an excuse to neglect existing laws. Operators must continue to comply with laws such as the Money Laundering Law (Law No. 9,613/1998), the Financial Crimes Law (Law No. 7,492/1986), the Consumer Protection Code, and the Child and Adolescent Statute (ECA), among others. The SPA will scrutinize authorization requests with a focus on ensuring that applicants have not been involved in illegal activities.
Developments in South America
In related news, the Argentine Football Association (AFA) has announced the renewal and expansion of its partnership with SmartSoft. This development reflects ongoing changes and partnerships in the South American betting and sports industry.
The upcoming regulatory changes in Brazil’s betting market signify a move towards a more controlled and legally compliant environment. As the deadline approaches, operators must act swiftly to secure their authorizations and ensure they meet all regulatory requirements. With the regulated market set to launch in January 2025, the focus will be on creating a fair and transparent betting landscape that prioritizes legal compliance and consumer protection.
This regulatory shift is expected to have significant implications for both existing and new operators in Brazil. The high volume of licensing applications highlights the potential of the Brazilian market, but it also underscores the importance of adhering to the new legal framework to ensure continued operations and avoid being classified as illegal.
By maintaining a rigorous approach to authorization and compliance, Brazil aims to build a robust and secure betting market that benefits all stakeholders involved.