Brazil warns unlicensed operators to cease operations from October 1

The initial round of license applications has recently ended, during which 113 companies have expressed interest in participating in the regulated market. Although Brazil plans to continue reviewing applications after this date, only those companies that have applied by the deadline will be able to participate in the market launch.

The regulated betting market will officially launch on January 1, 2025. Companies that apply by September 30, 2024, will be able to continue operating until the end of the year, even if their licenses have not yet been approved. However, from January 1, 2025, only fully licensed and approved operators will be able to operate legally.

After October 1, companies that have not submitted an application will be required to cease operations, said Regis Dudena, Secretary General of the Secretariat of Betting and Prizes (SPA). According to him, companies that submit applications even after the initial deadline demonstrate their willingness to comply with the rules and operate within the framework of Brazilian law. Those that do not submit an application by the deadline will be considered uninterested in legally operating in the market.

Brazil's move to regulate the betting market includes strict measures to combat money laundering and terrorist financing, as well as enhanced IT security standards.

In addition, legitimate operators will be required to implement measures to protect players from excessive gambling. Brazil has recently taken a strong stance against the riskier and more addictive products offered by some operators.

Operators wishing to operate in the market will have to pay a licensing fee of around $5.5 million. Those who fail to obtain a license risk facing criminal prosecution for violating Brazil’s betting laws.

Dudena also noted that Brazil’s goal is to clearly distinguish between responsible, law-abiding companies and those who use the betting market for fraud and money laundering.