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    Licensing approvals and illegal sites shutdown shape Brazil's gambling market

    • author icon by Deni in Regulations
    • calendar icon December 23, 2024 | Last updated: January 8, 2025
    • calendar icon 5 min read
    news thumbnail image

    Operators notified of licensing approval and further steps. 5,000+ sites shut down due to illegal operations in Brazil.

    A thriving gaming market is a regulated one where players can safely enjoy their favourite games.

    Because of this, gambling restrictions have been a key focus point for authorities worldwide as they try to clean up and regulate the local industries.

    Brazil is one of the developing markets that is in the process of casino licensing but also slamming down illegal sites. Evidence to date shows that the region is strict not just in its regulatory process but also in addressing illegal operators.

    Update:

    Brazil officially launched its regulated gambling market as of January 1, 2025. Currently, 66 betting sites are authorised to operate. 30 of them (from 14 companies) have received permanent five-year licenses, while the remaining 52 companies have temporary authorisations and must address certification issues within 60 days. Brazil's new regulations are considered among the strictest globally.

    Licensing in Brazil

    As per Brazil's gambling regulations, the first licensing application window closed on 20 August 2024. Now, the Secretariat of Prizes and Betting (SPA) under Brazil’s Ministry of Finance has begun notifying all approved sports betting and online gaming operators. These approved platforms are required to pay a grant fee of R$30 million ($5.2 million).

    They must also prove an equivalent paid-up share capital. Each operator has 30 days to present proof of payment and the additional documentation required, which includes a declaration of the lawful origin of the funds.

    Any company failing to meet these requirements within the deadline could permanently see its licensing applications archived.

    Some of the first companies to receive notification of approval include Entain (Sportingbet), Flutter, MGM LeoVegas, Betsson, Rei Do Pitaco, Betnacional, PagBet, Kaizen (Betano), and Mr. Jack.

    The deadline is non-extendable, as per Article 13 of Law 14,790. Operators should also submit all evidence related to additional certification criteria. If they meet the requirements, their licensing will take effect on 1 January 2025.

    Shutdown of illegal sites

    Aside from the first wave of operators being notified of licensing approval, a total of 1,812 additional illegal gambling domains have been blocked by telecoms agency Anatel, as per the government’s order to ensure safer gambling. This now increases the total of blocked sites to over 5,000.

    It is the third list of domains SPA has sent to Anatel requesting they be taken down and blocked. The first one, which included 2,040 sites, was sent on October 11. Twenty days later, a second followed, including 1,400 more.

    Those included have applied for betting licenses by the October deadline and have been active within the market since before the license applications.

    Brazil’s legal market launches on January 1, 2025. Currently, all the paperwork is being sorted, which evidently shows in the massive ban on illegal operations and the approval of new licenses.

    Before the market launched, the government was eager to crack down on all illegal casinos and unlicensed gambling operators. This is due to the fact that the industry faces backlash from a number of government officials as well as those in the private sector.

    Sources reveal that the blocking order has been sent to 20,000 telecom operators providing internet coverage in Brazil. Anatel is in charge of monitoring and ensuring that the blocking is carried out effectively and quickly.

    Around 100 operators and 223 brands have been approved to continue doing business before the legal market launched.

    Ban on credit card betting

    It’s also worth mentioning that the banking sector plans to limit credit card betting by 1 January 2025.

    The Brazilian Federation of Banks has demanded that the ban on credit card betting be accelerated as there are growing concerns regarding problem gambling and increasing defaults as the country awaits full implementation of the gambling regulations.

    However, the Brazilian Institute of Responsible Gaming (IJBR) believes that they should rethink the ban on using Pix for betting as it would not reduce player debt. For further developments in this story and to stay in the loop on all the iGaming news worth knowing, follow CasinoWow!

    Leave us a review on Trustpilot!

    Last updated: January 8, 2025

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    Deni avatar image

    Article by Deni

    CasinoWow Contributor

    Hi, I’m Deni and I am here to ensure you have all the information you need to make informed decisions about online casinos and games and, of course, have fun while doing it. I do so through in-depth research and a keen eye for detail resulting in comprehensive reviews and engaging articles. Let’s explore the iGaming world together!

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