SPA to Suspend Betting Companies Without Authorisation Starting in October
Only operators that were already in operation and have applied to explore the fixed-odds lottery betting modality before this date will be allowed to continue operating.
The Prizes and Betting Secretariat (SPA) has established a strict deadline for betting companies seeking to operate in Brazil to secure authorization.
Operators who fail to request authorisation by October 1st will have their operations suspended until they receive permission from the SPA. Only operators that were already in operation and have applied to explore the fixed-odds lottery betting modality before this date will be allowed to continue operating.
From October, operators that have not applied for authorization through the Ministry of Finance’s betting management system, SIGAP, will be considered illegal until they gain approval from the Treasury.
This move comes as Brazil prepares to launch its regulated betting market on January 1, 2025. From that point on, only operators fully compliant with the laws and ordinances will be permitted to operate.
Interest in operating in Brazil has been high. By the end of August, Gaming America reported that the country had already received 114 applications for iGaming licenses.
Secretary of Prizes and Bets of the Ministry of Finance, Regis Dudena, stated:
“We will maintain the adaptation period until the end of December only for those who have already demonstrated that they want to act in accordance with the law, in accordance with Brazilian rules. Many police operations involving companies that operate in the betting market in a criminal manner have come to light. This was the way we found to not wait until January to start separating the wheat from the chaff."
Dudena added:
“We want to protect the mental, financial and physical health of bettors, preventing the activities of companies that use sports betting and online games as a means of committing fraud and money laundering.
"The adaptation period cannot be used to fail to comply with laws already in force, such as the Money Laundering Law (Law No. 9,613/1998), the Financial Crimes Law (Law No. 7,492/1986), the Consumer Protection Code, the Child and Adolescent Statute (ECA), among others. When analysing authorisation requests, we are taking into account the commission of illegal acts.”
In other Brazil gambling news, Flutter has purchased a significant stake in Brazil's NSX Group, with the deal being priced at $350 million.
