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With the long-awaited regulated market launch only a few hours away, the Prizes and Betting Secretariat of Brazil’s Ministry of Finance has announced its list of 81 operators licensed to carry out legal online gambling operations from 2025.
The SPA published the list in the Official Gazette of the Union, featuring a total of 81 licensed operators: 15 definitive licenses and 66 provisional ones. This figure exceeds the 71 operators initially reported by Regis Dudena, the head of the regulator, on December 10.
Speaking then, he said, “Seventy-one companies have already been notified by the Ministry of Finance and have 30 days from the notification to meet these final requirements. Of these, 16 have already paid the license fee. Up to today, 16 companies have paid a total of R$480m in licensing fees to the Ministry of Finance.”
All the approved operators are mandated to pay R$30m to the government and also establish a R$5m emergency fund. Some of the notable names that received a definitive license include BETMGM, SportyBet, 7Games, and Alfa.bet.
Caesars, Betano, Betsson, Betfair, and Sportingbet are a few of the top names to have made the final cut with provisional licenses.
More Approvals to Follow
The SPA initially gave an August 20 deadline and saw an impressive 114 applications before the close. A further 271 operators submitted applications after the deadline, and the regulator has announced that they will be working on approvals within the next six months.
However, despite an October lawsuit aimed at limiting state-level licensing, some operators unable to secure federal authorization have turned to state licenses to establish localized operations. States such as Maranhão, Rio de Janeiro, and Paraíba have begun issuing these licenses, with fees reaching as high as R$5 million.
The regulator has urged operators to apply for the federal license, even those excluded from the initial authorization. It stated that the exclusion was not permanent, and companies could resubmit their applications provided they met the financial requirements, transferred the licensing fee from a single account tied to the betting platform, and met certain compliance standards. These rules were set forth by the regulator to safeguard against money laundering and other illegal financial activities.
The Challenge of Illegal Competition
Despite high anticipations for the regulated market launch, concerns have been mounting over the thriving illegal betting sector. Many, like Plínio Lemos Jorge, president of the National Association of Games and Lotteries (ANJL), fear that this illegal market could drive licensed operators out of business if not curbed.
The ANJL reports that over 2,000 illegal sites currently operate in the country, with Lemos Jorge highlighting that these platforms not only evade taxes but also create unfair competition by not adhering to regulatory costs and standards essential for legal operators. According to the new regulations, licensed platforms are mandated to pay a 12.5% tax on gross monthly revenue.
The SPA announced earlier that it’s partnering with both Anatel and the ANJL to find effective solutions. Some of the suggestions that have been brought up include giving Anatel more autonomy through a ‘specific law,’ implementing stricter payment restrictions on financial institutions, and stronger penalties for illegal operators.
Despite all this, industry players, including Lemos Jorge, remain optimistic about the future of Brazil’s gambling landscape. He believes that the regulatory framework established by the national congress through Law 14,790/2023, along with the detailed ordinances published by the SPA, is among the most rigorous and comprehensive in the world.
Source: Next.io
