Brazil’s Secretariat of Prizes and Bets (SPA) has authorized 71 federal licenses for online gambling operators as the country prepares to officially launch its regulated market on January 1, 2024. These approvals mark a significant step toward establishing a structured and legal online gambling framework in Brazil.
Out of 144 applications submitted by the October deadline, 71 operators successfully met the strict requirements set by the SPA. These included robust IT security protocols, reliable payment processing systems, anti-money laundering safeguards, and adherence to responsible gambling standards. According to SPA President Regis Dudena, these measures ensure only compliant and reliable operators enter the market.
Each license is valid for five years and allows up to three operational skins. Operators must pay a licensing fee of R$30 million (€5 million). To date, 16 operators have fulfilled this payment, contributing R$480 million to the Ministry of Finance.
From January 1, 2024, all licensed operators must establish Brazilian entities with clear ownership and management structures. This regulation aims to provide comprehensive oversight and prevent any potential misuse of the system. Additionally, recent legislation prohibits the use of welfare funds for gambling and restricts advertisements targeting individuals under 18, reinforcing the government’s commitment to responsible gambling.
While the online gambling market is gearing up for its launch, other sectors of Brazil’s gambling industry are also under scrutiny. The Senate is reviewing proposals to introduce new taxes on certain gambling activities, and discussions on legalizing land-based casinos have been postponed for further evaluation.
The licensing of 71 operators represents a pivotal moment in Brazil’s efforts to regulate online gambling, setting the stage for a safer, more transparent, and economically beneficial market. As the industry takes shape, these regulations are expected to provide a balanced framework for both operators and players.
Licensing Process and Criteria
Out of 144 applications submitted by the October deadline, 71 operators successfully met the strict requirements set by the SPA. These included robust IT security protocols, reliable payment processing systems, anti-money laundering safeguards, and adherence to responsible gambling standards. According to SPA President Regis Dudena, these measures ensure only compliant and reliable operators enter the market.
Each license is valid for five years and allows up to three operational skins. Operators must pay a licensing fee of R$30 million (€5 million). To date, 16 operators have fulfilled this payment, contributing R$480 million to the Ministry of Finance.
Operational and Regulatory Requirements
From January 1, 2024, all licensed operators must establish Brazilian entities with clear ownership and management structures. This regulation aims to provide comprehensive oversight and prevent any potential misuse of the system. Additionally, recent legislation prohibits the use of welfare funds for gambling and restricts advertisements targeting individuals under 18, reinforcing the government’s commitment to responsible gambling.
Future Developments in the Gambling Sector
While the online gambling market is gearing up for its launch, other sectors of Brazil’s gambling industry are also under scrutiny. The Senate is reviewing proposals to introduce new taxes on certain gambling activities, and discussions on legalizing land-based casinos have been postponed for further evaluation.
The licensing of 71 operators represents a pivotal moment in Brazil’s efforts to regulate online gambling, setting the stage for a safer, more transparent, and economically beneficial market. As the industry takes shape, these regulations are expected to provide a balanced framework for both operators and players.
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