By last Tuesday (20) midnight, the Secretariat of Prizes and Betting (SPA) of the Ministry of Finance (SPA-MF) had received 113 requests for authorization from 108 companies to operate fixed-odds bets.
These first companies that registered with the Betting Management System (Sigap) of the Ministry of Finance will receive responses in 2024 and, if approved, will be able to operate when the regulated betting market opens on January 1, 2025.
If all of them comply with the rules established in the regulations, the Ministry of Finance will be able to collect up to R$3.4 billion (US$ 620m) this year, just from the payment of the concessions.
It is estimated that around 220 websites will be able to offer bets in an authorized and regulated manner, since, in each request, up to three brands (popularly known as 'Bets' in Brazil) can be offered, depending on the company's commercial option.
The registration period is still open, but new requests will be analyzed within 180 days, as per the general rule.
For the Secretary of Prizes and Betting of the Ministry of Finance, Regis Dudena, the number of requests exceeded even market estimates, which indicates the confidence and legal certainty of the regulation by the Ministry of Finance, and places Brazil as one of the largest regulated markets in the world.
He considers the authorization requests a key process in building a safer betting market for society and the national economy.
“The conclusion of the initial phase of the authorization process, with this significant number of requests, was a success. The Ministry of Finance has been working hard on regulation and has established strict criteria for protecting bettors and rules for the market,” says Dudena.
For the Secretary, “the sector responded positively, showing that there are many serious companies that intend to operate in compliance with the legislation, which is the best way to meet the personal, social and economic needs of the activity.”
Starting next year, with the end of the legal adaptation period, which runs until December 31, only authorized companies that comply with all regulations will be able to operate in Brazil. Companies without authorization will be in an illegal situation and will be banned from the market, including being prohibited from advertising and sponsoring.
“The period without rules is coming to an end. With the conclusion of the adaptation phase, the market has already understood that there is only one way to operate nationally in Brazil: complying with the law and the rules, respecting people and with authorization from the Ministry of Finance,” reinforced the Secretary of Prizes and Betting of the Ministry of Finance.
Among the rules that must be respected are those related to the means of payment of prizes, combating money laundering and responsible gaming, with mechanisms to protect bettors against problems associated with gambling, over-indebtedness and fraud. Authorized companies must be incorporated in Brazil, in accordance with national legislation.
All approved brands must only operate on sites with the “.bet.br” domain, which will indicate legal and regulated environments, the only ones that will provide national security for bettors, ensuring, in compliance with the law, their identification, as well as prohibiting access by children and adolescents.
Authorized companies will be monitored and inspected by SPA-MF, through a system developed specifically for this purpose. Brazil will be one of the few markets in the world to develop a system that will receive direct information about activities related to betting.
This database will allow the government to monitor various types of activities, from bettors’ behavior to the evolution of the volume of funds bet, lost and prizes paid, in addition to helping to control the calculation bases for tax purposes.
Source: GMB
