SPA Authorizes 71 Federal Online Gambling Licenses in Brazil

Earlier this week, we announced a new partnership between Brazil’s National Telecommunications Agency, Anatel, and the Secretariat of Prizes and Bets (SPA) with a focus on fighting off unlawful gambling.

Now, the Ministry of Finance’s body responsible for authorizing, permitting, regulating, standardizing, and monitoring Commercial Promotion and Fixed Odds Betting has announced it has granted full authorizations to 71 businesses seeking federal online gambling licenses. 

The news has marked an important milestone for the country’s regulated betting industry ahead of its launch announced for January 1, 2025.

114 Total Applications Reviewed 

SPA’s president, Regis Dudena, shared the latest development during a session with the Parliamentary Commission of Inquiry (CPI) on Bets. 

Dudena explained that, out of the 114 total applications that were submitted, only 71 had successfully met all the necessary criteria.

The 71 companies have already received official notifications from the Ministry of Finance and they were given 30 days from the notification to meet the final requirements. 

Of the approved operators, 16 have already paid the license fee totaling R$480 million ($81.3 million) to the Ministry.

The approved businesses have been cleared to make the upfront concession payment of R$30 million ($5 million). The fee must be settled within a 30-day period. 

Five-Year Licenses with Up to Three “Skins”

The licensing process was initiated in April 2024 and involved a comprehensive four-stage review that covered technical security protocols, payment processing standards, anti-money laundering (AML) measures, game regulations, and responsible gambling practices. 

According to the SPA, all approved companies have successfully met these stringent requirements.

The fresh licenses will be valid for five years and will allow operators to offer up to three “skins” or betting brands under each license. 

To make sure they operate legally, companies will need to establish a registered office within Brazil and also maintain corporate accounts certified by the Bank of Brazil.

Dudena further highlighted the importance of strict adherence to regulations, stressing that, starting next year, “all companies operating in Brazil will need to be Brazilian entities established under Brazilian law” and make their shareholders, ultimate beneficiaries, and executives known. 

Looking ahead, 2025 could see further changes to the betting market as the Senate is looking into a proposal to apply selective taxes, or “sin taxes,” on gambling activities. 

Senator Eduardo Braga, the rapporteur for the Federal Tax Reform Project, has suggested that these taxes could be a useful new revenue source.