In other words, only websites that are on the positive list of the Ministry of Finance will be allowed to operate nationwide in Brazil until December. As of Thursday night (10), 96 companies with 210 bets respectively are eligible to remain online until the end of this year.
To identify these platforms, the SPA carried out extensive monitoring of websites and social networks, initially locating 2,040 suspicious domains, which were sent to Anatel to block access throughout Brazil.
By December, Finance must complete the process of definitive analysis of the first requests received, to verify which betting companies comply with all the provisions of Laws 13.756/2018 and 14.790/2023, in addition to the more than ten SPA ordinances that regulate the activity.
Betting houses deemed eligible will need to pay a R$30 million (US$ 5.4m) grant to start operating on January 1, 2025, when the regulated betting market will begin in Brazil. They will need to permanently comply with all rules to combat fraud, money laundering and abusive advertising, among others.
According to Finance Minister Fernando Haddad, the law will come into effect as of this Friday, as approved by the National Congress. “Those who are not in compliance or in the process of becoming regularized will be taken offline,” explained the minister.
Companies that are not on the positive list but still want to operate in the market must submit the necessary documentation to obtain definitive authorization. The Treasury Department has 150 days to respond, and companies have another 30 days to pay the fee, totaling 180 days. “Unlike those that were online until now, they will only be able to go online after authorization,” said Haddad.
The measure focuses mainly on the integrity of bettors, recalled the executive secretary of the Finance Department, Dario Durigan. According to him, this is the first measure with a major impact on the subject taken in Brazil.
“Only regular companies will remain in business. Users themselves need to be aware of this. We are working to publicize which sites respect Brazilian rules, will comply with the laws and will protect users to some extent, and which do not. In addition to taking money from sites that are not regular, bet responsibly and for your own pleasure, on regular sites,” he said.
He pointed out that, even after the sites are taken down, it will still be the responsibility of the betting houses to ensure that bettors have the means to withdraw the deposits to which they are entitled.
“It is very important for bettors to understand that, for the sake of their mental and financial health, it is better to be in a regulated environment, where companies operate that are, in fact, willing to comply with the rules. Collaborating with illegal companies means contributing to companies that, ultimately, will defraud the bettors themselves. That is why it is very important to understand the separation between these two groups,” explained the Secretary of Prizes and Betting of the Ministry of Finance, Regis Dudena.
According to Dudena, the Treasury Department will be constantly monitoring these sites to ensure that they do not operate in Brazil again. “This is a very important first step that will be further developed and will involve ongoing action by both the SPA and other government agencies to protect, above all, bettors and the popular economy,” said the secretary.
Dudena emphasizes that companies that are not on the Finance Department’s positive list are even prohibited from advertising, which includes, for example, sponsoring football clubs.
“The positive list will be the benchmark for everything that is regular in Brazil, both for betting and advertising. We are already seeing some moves by platforms, social networks, and TV and broadcasting associations to ensure that advertising is restricted to regular companies.”
The secretary noted that companies authorized to operate until December will also be monitored, since they are in a “probationary period” while they wait for all the documentation to be analyzed for the final authorization process.
Companies that violate any law in force in Brazil, such as the Consumer Protection Code and the Child and Adolescent Statute, run the risk of not obtaining authorization to operate, starting next year.
“Companies that are operating are jointly responsible for their actions. Even those on the current positive list are also being analyzed and all of their behavior will be taken into consideration until the final decision on definitive authorization is made,” he warned.
Blocking
In total, 20 thousand telecommunications companies were notified by Anatel to proceed with the removal of betting sites that, as of this Friday, will be illegal.
According to the president of Anatel, Carlos Baigorri, the time for the execution of the blocking will depend on the measures employed by the providers, according to their specificities. “Each company will take its technical measures and we will monitor to ensure that this blocking is carried out effectively and as quickly as possible,” assured Baigorri.
In line with what Dudena and Durigan said, the president of Anatel reinforced the role of the citizen in combating illegal sites. He compared illegal betting markets to cigarette smuggling and counterfeit products that harm the population.
“When a citizen places bets in a regulated environment, he is counting on all the protection of the State that created this environment precisely to guarantee his rights. In an unregulated environment, he is taking risks,” he added.
Withdrawal of funds
"Those who did not request accreditation will not be able to operate from now on, they will have 10 days. These 10 days are more for the bettor than for the betting house, because there are many people who have financial resources deposited in the betting house," explained Fernando Haddad at the beginning of the month.
"So, the 10 days are for the person to check if they have a balance and request a refund. If not, we would take it offline immediately, but we will not do so to protect the savings of the eventual bettor," said Haddad to journalists.
And who does not withdraw in time?
The federal government states that illegal betting sites have the obligation to return to consumers the money deposited in their accounts, even after the sites go offline.
The withdrawal mechanism, however, may become more complicated. The betting houses will have to take responsibility for the refund, but the fact that they have refused to begin the process of adapting to the new legislation is an indication that withdrawal may be difficult.
The government has not yet announced whether it will make any official channel available to assist customers who feel harmed by illegal betting sites.
Source: GMB
