It was enough for the Secretary of Prizes and Bets at the Ministry of Finance, Regis Dudena, to say that a clarification regarding the Brazilian partner of the betting operators that wish to establish themselves in the country would come out within moments, for almost 300 people to take out their phones from their pockets to enter the secretariat website.
“Too bad cell phones don’t have an F5 key, right?” Dudena joked, referring to the function on computers that automatically refreshes a website. The audience at the event, trying to decipher the betting regulations, burst into laughter.
It was a relief in the tension of a race against time. In this case, the clarification to be published was whether the local partner needs to be a natural person from Brazil, if it can be a company incorporated in the country, or both – and it is just one of the many questions the sector has faced.
More than just being robust, the betting market aims to regularize and keep within the country bets that move BRL 150 billion (US$ 28.4bn) annually, much of which currently goes abroad. With the regulation of the sector, a new formal market will be created, which has attracted the attention of major players in the financial market.
At the event held yesterday (6) at the Pinheiro Neto office in São Paulo, there were large foreign banks, digital banks, payment providers, many betting companies, certifiers, and representatives of public entities such as the Central Bank and the Ministry of Finance. Broadcast in real-time with simultaneous translation, it also had audiences from other countries interested in the topic.
Agency created three months ago
Created just over three months ago, the Secretariat of Prizes and Betting (whose acronym SPA, due to the "relaxed" environment, also made the audience laugh) is racing against time to establish rules and make up for the parliamentary discussions that began in 2018. With the publication of the first phase of the 11 infralegal regulations at the end of last month, the countdown began for granting the provision of public betting services – the so-called fixed-odds lottery, which also includes online betting – to concessionaires.
In this first phase, rules were presented to enable laboratories capable of technically certifying the capacity of betting operators. "We already have the four largest laboratories in the world certified in the country," said Dudena. Rules for payment methods (such as mandatory requirements and payment flow methods), systems, and platforms were also established, marking the start of the system's implementation process.
In the second phase, ordinances related to money laundering and other crimes, as well as the rights and obligations of market participants, will be presented. In the third phase, online games, supervision, and sanctioning actions will be regulated. In the final phase, rules for responsible gaming and social allocations from the 12% of resources circulating in the system that will be compulsorily collected will be determined. The issuance of the final ordinance is scheduled for the end of July.
To operate in 2025, applications must be submitted by August
Although those interested in providing these services can apply at any time to the Ministry of Finance to offer betting services, those who want to start operations in 2025 must request authorization by August 20. The SPA will review the extensive list of documents, which includes the protocol indicating that the operator is being analyzed by a laboratory, as well as information about the controllers, and the origin and destination of the funds involved.
Approved applicants will be notified by November 18, and the granting fee of BRL 30 million (US$ 5.7m) must be paid by December 18. On December 31, authorizations will be granted, and betting operators will begin providing services in the country.
According to Daniela Olímpio, SPA's Subsecretary of Authorization, 136 legal entities have expressed interest in the regulatory process. The Betting Management System (Sigap), the Ministry of Finance's platform, has only one registrant, Kaizen Gaming Brazil.
According to Dudena, a working group was created with the Ministry of Health to address societal concerns regarding the mental and financial health of bettors. Among other control initiatives, bettors will have to register using biometrics, and betting funds will only come from accounts in which they are the account holders, through electronic transactions only.
Payments only through institutions authorized by the Central Bank
Regarding system security to prevent money laundering, the SPA also worked with the Central Bank to establish rules for financial movement and monitoring. Only financial and payment institutions authorized by the Central Bank will be allowed to operate.
"We need to have full control of financial flows, knowing where the money comes from and where it goes," said Dudena. "The model was designed to ensure total visibility in 'follow the money'."
According to Dudena, the prospect of increasing financial service providers or the entry of crypto assets will not happen in the short term. "At least for the next three years, we will need to test the system, identify any flaws, and correct them," he stated.
In the area of financial security, betting houses will need to have three bank accounts: a transactional account (where bettors' money will be deposited), a proprietary account (with the operators' funds), and a liquidity account (with BRL 5 million -US$ 945k- available for cases of significant losses). Taxation issues in various areas were also discussed, which should help improve the country's fiscal situation starting in 2026.
In addition: Brazilian partners of betting companies, who must own at least 20% of the concessionaire, can be either natural Brazilian persons or Brazilian legal entities, constituted under Brazilian law and headquartered and managed in the country.
Source: GMB / Broadcast
