Brazil to Block Thousands of Sites as Regulated Betting Looms

The Prizes and Betting Secretariat (SPA) of Brazil’s Ministry of Finance has once again reminded operators that have not applied for a license that they face blocking. As announced several weeks ago, only those who have demonstrated an interest in acquiring a license will be allowed to operate during the transitional period before the official online betting market launch.

Thousands of Domains Have Been Forwarded for Blocking

Brazil is set to launch regulated online betting on January 1 in one of the most anticipated market launches ever. As the launch looms, the country is committing to the shift from unregulated to regulated betting.

As a result, the SPA approved 96 operators to continue offering betting via 210 brands until the official start of regulated betting. At the same time, the SPA will carefully monitor the online ecosystem and crack down on unlicensed gambling companies, if the need should arise.

The secretariat was quick to find 2,040 suspicious domains believed to offer illegal gambling. They have since been forwarded to the National Telecommunications Agency for further action.

As reported by NEXT.io, SPA secretary Regis Dudena added that bettors must understand that a regulated sector would benefit their own mental and financial health since it would force gambling companies to follow certain rules and protocols. On the contrary, playing with illegal companies would ultimately hurt the players themselves.

Brazil Will Make Sure the Operators Follow the Rules

In the meantime, the Ministry of Finance noted that it would have processed the first round of license applications by December. For context, 113 operators had applied for licenses during the initial license application window. A few other companies followed suit past this period and will likely be unable to offer their products immediately after the market launches.

The companies that are ultimately awarded licenses will have to pay a licensing fee of approximately $5.5 million. They must also commit to upholding high compliance standards and protecting players from harm.

Other companies can also apply for a license, although the licensing process for new applicants will take longer. New applicants will also be unable to operate during the transitional period between October 2024 and January 2025.

In the meantime, the government plans to treat the transition as a “probationary period” during which their businesses’ suitability to operate in Brazil will be evaluated.

Dario Durigan, executive secretary of the Ministry of Finance, warned that Brazil will be stringent when it comes to its gambling rules. If a company happens to violate the rules before the official market launch, it risks having its license application voided.