Brazil will suspend unlicensed sports betting companies starting October 1

Deadline for obtaining licenses

By the close of the first license application window, Brazil reported that around 113 companies had applied for a license. While later applications will be accepted, only the companies that participated in this initial process will be allowed to operate at the launch of the regulated market.

Companies that applied for their license before September 30, 2024, will be allowed to continue operating until the end of the year, regardless of whether their application has been approved. However, from January 1, 2025, only companies that have completed the regulation process will be able to operate legally in the country.

On the other hand, companies that do not apply before October 1 will be required to cease operations, as explained by Regis Dudena, General Secretary of the Secretariat of Betting and Prizes (SPA).

Progress towards a more regulated market

Brazil is taking steps toward creating a more regulated sports betting market, implementing a series of rules that operators must follow. These include strict anti-money laundering (AML) and counter-terrorism financing (CTF) standards, as well as robust IT security measures.

Additionally, legal operators will be required to protect players from excessive gambling, aligning with the country’s firm stance against high-risk and highly addictive products that some operators have offered.

Requirements to operate legally

Operators seeking to comply with the regulations must also pay a licensing fee of approximately $5.5 million. Meanwhile, unlicensed operators will face the risk of prosecution by Brazilian authorities, as their activities will be considered illegal under the country’s gambling laws.

Regis Dudena emphasized in his recent address that Brazil aims to draw a clear distinction between legal and responsible companies and those that use betting as a means to commit fraud and launder money.