On 21 May 2024, a landmark occurrence unfolded in Brazil’s gambling landscape as the Secretariat of Prizes and Betting under the Ministry of Finance issued Ordinance SPA/MF nº 827. This pivotal legislation establishes the comprehensive regulatory framework essential for the licensing of gambling operators, heralding a significant progression towards the eagerly anticipated inauguration of Brazil’s regulated gambling market.
Brazil advances in sports betting regulation
Under a new regulatory framework in Brazil, only companies registered under the nation’s laws are eligible to obtain a fixed-odds sports betting license. This initiative marks a pivotal move towards regulating the growing betting industry in Brazil. The license, coming with a BRL 30 million fee, grants a five-year operational term, setting a significant benchmark for entrants into the market.
Legal entities currently operating without compliance have until December 31, 2024, to adjust their operations according to the new ordinance. This provides a transition period for businesses to align with the regulatory expectations. Furthermore, the ordinance permits operators to manage up to three distinct betting brands under a single license, with the option to expand their portfolio for additional fees, indicating a flexible approach towards market dynamics and growth opportunities within the sector.
The Gaming Authority is now accepting applications from companies eager to enter the market, signaling an important period for the gambling industry. With a comprehensive review process in place, the authority has allocated up to 150 days to thoroughly evaluate each submission.
This new Ordinance promises a framework built on transparency and accountability, ensuring that all participants adhere to the highest standards. For those dissatisfied with the outcome, the process includes a provision for lodging appeals, guaranteeing fairness and impartiality.
Key Dates and Figures:
| Event | Deadline/Duration |
|---|---|
| Application Submission Begins | Effective Immediately |
| Review Period by Gaming Authority | Up to 150 days |
| Appeal Process | Available upon decision |
Revamping the gambling licensing process
In a significant move to enhance the integrity and efficiency of the gambling industry, a novel framework has been introduced mandating entities to demonstrate compliance across several key pillars. This entails not only adherence to legal and tax obligations but also proof of labor law compliance. Moreover, applicants are required to showcase both financial stability and technical prowess, ensuring only qualified operators can navigate the licensing terrain. This streamlined approach is designed to maintain the highest standards within the gambling sector, ensuring a fair and secure environment for all stakeholders involved.
