The country is giving non-licensed operators until October 1 to shut down or face the consequences
Brazil is stepping up efforts to regulate its expanding betting market by targeting operators without proper authorization. Starting October 1, betting companies that haven’t applied for a license will be forced to suspend their operations. This move is part of a broader strategy to bring order to the rapidly growing fixed-odds betting market before the official implementation of a regulated system on January 1, 2025.
The Ministry of Finance has outlined strict penalties for non-compliance, with fines reaching up to 2 billion reais (US$360 million) for unauthorized operators. Companies that have already applied for licenses can continue operating until the end of 2024, provided they meet stringent requirements. These include a mandatory 30 million reais (US$5.45 million) deposit and adherence to measures aimed at preventing fraud, money laundering, and abusive advertising practices.
For companies that applied before the September 16 deadline, there’s an adaptation period to ensure full compliance with the new regulations. By January 2025, these operators must use the “bet.br” domain for their services. Meanwhile, those who didn’t apply will be classified as illegal, and their websites will be taken offline starting October 11, 2024.
The government is working closely with the Ministry of Justice and Public Security, the Central Bank, and the National Telecommunications Agency to enforce these new rules. Finance Minister Fernando Haddad expressed concerns over the rise of gambling addiction in Brazil, likening it to a “pandemic” affecting public health. He emphasized the need for a strong regulatory framework to protect families, including a ban on bets made through credit cards or loans.
Regis Dudena, Secretary of Prizes and Bets, highlighted the government’s commitment to eliminating criminal elements from the industry before the market formally opens. The betting sector has flourished since online fixed-odds betting was legalized in 2018, attracting major international players like bet365, Betano, and Betfair. This regulatory push aims to bring transparency and order to the industry ahead of the upcoming legal gambling launch.
