As of October 1, 2024, companies operating in this segment and that have not yet requested authorization to operate in the country will have their activities suspended. This decision marks a crucial point in the process of regularizing and controlling the online betting market in the country, with the aim of promoting a safer environment for bettors and increasing federal revenue.
Óscar Madureira, Chief Legal Officer (CLO) at Oddsgate, considers this action by the Ministry of Finance to be an important step forward for the sector, highlighting that the initiative anticipates measures to combat the illicit exploitation of fixed-odds betting; stating:
“In addition to being an important step towards ensuring that the Brazilian market is only operated by licensed entities, these types of actions also aim to convey to operators a position that the state will not be complicit with illicit operations. For Oddsgate, this is yet another positive signal from the Brazilian regulator.”
Key points of this update:
- Suspension of operations: Companies that have not requested authorization by September 16, 2024, will be classified as illegal and will have their operations suspended starting October 1 of the same year. This measure is part of the government's efforts to ensure that only regulated companies can operate in the country;
- Regularization deadline: The suspension of these companies’ activities will last until they file a request for authorization with the Prizes and Betting Department of the Ministry of Finance. Operations can only be resumed once permission is granted;
- Companies in the authorization process: For companies that have already requested authorization but have not yet started operating, the government has established that operations can only begin starting in January 2025, provided they obtain approval from the Ministry of Finance;
- Severe penalties: Companies that decide to operate without the proper authorization will be subject to significant fines, which can reach up to R$ 2 billion (US$ 366m) per violation. This underscores the government’s commitment to ensuring compliance with the new regulations;
- Analysis process: So far, the Ministry of Finance has received 113 authorization requests from 108 companies interested in legally operating in Brazil starting in January 2025. These numbers reflect the growing interest in the Brazilian market and the progress in the regularization process;
- New requirements for 2025: Starting next year, authorized companies must meet new rules, including the obligation to operate with the ".bet.br" domain, have headquarters in Brazil, and include a Brazilian partner with at least 20% ownership in the company;
- Expected revenue: If all companies comply with the requirements, the Ministry of Finance estimates that revenue could reach R$ 3.4 billion (US$ 622m) by the end of 2024, solely from the payment of operational grants.
These measures are part of the Brazilian government's ongoing effort to organize and regulate the online betting market in the country. They represent a new step in building a structured and regulated betting market aligned with international best practices.
In light of these changes, Madureira expresses confidence regarding the regulation of the B2B platform company, emphasizing that it is already fully prepared to operate in the regulated market, strictly adhering to all established requirements. He also supports the new measures, as he states:
“As a company that will operate in Brazil’s regulated market, Oddsgate welcomes this initiative by the Ministry of Finance and hopes that such actions will create conditions for reinforcing the commitment to regulation and credibility of that market, especially since these initiatives protect all companies that seek to operate legally, respecting the rules imposed by current legislation and, among other things, contributing to tax collection.”
In addition to this preparation, the company also offers full support to clients who wish to operate in compliance with the law. As it approaches its second anniversary, Oddsgate already holds GLI-13, GLI-33, and GLI-19 certifications, in addition to licenses to operate in Romania, reinforcing its commitment to compliance and data integrity.
To ensure data protection, the company uses payment methods certified by the Ministry of Finance and strictly follows responsible gaming policies, such as self-exclusion mechanisms.
Madureira adds that, although Brazil is sending a clear message to the industry, the challenge is just beginning: “It is certain that this will have to be a reiterated and continuous effort, as there will always be those who try to operate illegitimately and outside the regulator’s control."
He concludes: “For now, this is definitely a good signal that Brazil is sending to the industry.”
Oddsgate is a leader in the iGaming industry, offering a complete SaaS platform. It guarantees efficient integration and development from scratch in up to 30 days. Committed to quality, it has a customer-focused philosophy, with a global presence and the best solutions on the market in Sportsbook, Casino, CRM, payment systems, and affiliates.
Source: GMB
