Brazil Warns Unlicensed Operators to Cease Operation from October 1

Brazil’s Ministry of Finance warned that sports betting businesses that have failed to apply for a license will be suspended from October 1. This deadline comes ahead of the launch of Brazil’s regulated sports betting and aligns with the country’s ambition to shift toward a more orderly market.

Operators That Have Applied for a License Can Continue Operating

Brazil just closed its initial license applications window, reporting that some 113 businesses had applied for a license. While the Latin American country does plan to accept later applications, only the initial applicants will be able to participate in the market’s launch.

Regulated betting, for context, will officially hit Brazil on January 1, 2025. Companies that have applied for a license before September 30, 2024, will be allowed to continue operating until the end of the year, regardless of whether their applications have been approved or not. From January 1, however, only fully regulated businesses will be able to continue operating legally.

Meanwhile, after the October 1 deadline, companies that have not applied for a license will be required to cease their activities. Regis Dudena, general secretary of the Secretariat of Betting and Prizes (SPA), elaborated on the matter.

Dudena confirmed that companies that apply for a license, even after the initial window, demonstrate willingness to follow the rules and act in accordance with Brazilian rules. On the contrary, companies that have failed to apply for a license by October 1 are to be considered uninterested in legal operations.

Brazil Moves Toward a More Regulated Market

Brazil’s shift toward a regulated market would implement a variety of rules and protocols that operators must follow. These include strict AML and CTF standards, as well as robust IT security measures.

In addition, legal operators would be required to shield players from excessive gambling. Brazil just took a firm stance against riskier and highly addictive products that some operators offer.

Legal operators would furthermore be required to pay a licensing fee of almost $5.5 million to complete the process.

In the meantime, unlicensed operators will risk prosecution by Brazilian authorities. Their operations will be considered to be in violation of Brazil’s gambling laws.

In his recent address, Dudena pointed out that Brazil wants to draw a line between legal and responsible companies and those who use betting as a means to commit fraud and launder money.