“The sector was left in limbo for over four years. Regulation should have been in place earlier, but it didn’t happen. At the beginning of 2023, the current government, through the Ministry of Finance, recognized the need to take action. The first step was a legal adjustment,” said Dudena.
“At the end of 2023, after adjustments made in Congress, a new law was enacted. This law was more comprehensive and robust, allowing regulators to delve deeper into the betting sector. Congress even expanded the scope of regulated betting to include online games, which introduced new challenges,” the secretary explained.
Regulations aimed to cover all aspects of betting
Even before formal regulations, betting companies were already operating in Brazil with sports betting and online casino games. The sector’s regulation process only began at the end of 2023 when President Lula signed Law No. 3,626. According to Régis Dudena, 2024 became the year to finally implement the long-overdue regulation.
“From February to July last year, ten ordinances were issued, covering a range of topics—from technical system requirements to payment methods, anti-money laundering measures, player protection, and responsible gaming. The process of granting licenses started in May and concluded its first phase by the end of the year,” he said.
According to the Secretary of Prizes and Betting, it was necessary to establish clear rules for every aspect of sports betting.
“We tackled numerous complex issues. Betting regulation is not a confined topic—it involves financial systems, consumer rights, health concerns, and many other areas. The issued ordinances reflect this broad and comprehensive approach,” he stated.
SPA received over 11,000 documents for licensing
To operate in Brazil, the so-called 'Bets' had to apply for a local license, comply with all government regulations, and pay a R$30 million (US$ 5m) licensing fee. By August 20, 2024, the SPA had received 114 licensing requests.
“The authorization process was intense. Each application required around 100 documents, meaning that with 114 requests, we handled over 11,000 documents. It was a highly demanding process,” noted Dudena.
Shutting down fraudulent websites
During the licensing process, the SPA discovered that many betting sites were still operating in 2024 without applying for a Brazilian license. Measures were needed to protect players and prevent fraud.
“In September last year, we identified a divide between legitimate companies seeking regulation and opportunistic groups exploiting the transition period for fraud and money laundering,” Dudena said.
“We allowed a transition period until August. However, by mid-September, companies that had not even applied for a license were deemed illegal and not in the process of regulatory adaptation,” he explained.
Despite identifying unauthorized sites, the SPA couldn’t simply shut them down, as many players had funds deposited on those platforms. The secretary emphasized that consumer protection was a priority.
“We couldn’t immediately take down sites operating without a license, as this could have affected players' deposits. Instead, we issued warnings and set a timeframe before starting to shut down illegal sites,” Dudena added.
‘Bets’ fully legal from January 2025
Despite the regulation now in place and over 70 companies licensed to operate in Brazil since January 2025, Régis Dudena acknowledges that the SPA’s work is far from over.
“As of January 1st, all regulations are in effect, meaning we can now start enforcing compliance. People expect quick results, but after six years without regulation, we’ve only been actively overseeing the sector for a month and 24 days,” he noted.
“Of course, we would love to have solved all issues by now. We are working hard to do so, but the reality is that it will take more time and effort. And that’s what we are here for,” the secretary concluded.
Source: UOL Apostas
