Gambling Licensing Requirements in Brazil Are Now Available

Gambling Licensing Requirements in Brazil Are Now Available

Earlier this week, the Gambling Licensing Requirements in Brazil became available and it is a game changer for many operations. This is because it also gambling companies that had previously been operation in the country’s gray market. Now, these gambling and sports betting businesses have an opportunity to apply for a gambling license.

Last Tuesday, Brazil’s Ministry of Finance’s Secretariat of Prizes and Betting published Ordinance SPA/MF nº 827. This document is the regulatory framework for gambling operator licensing. Therefore, this Ordinance outlines the general rules for the gambling authorization procedure. It also includes the necessary documentation and deadlines gambling operator will need to apply for a gambling license.

This new regulatory framework is designed to simplify the licensing process for gambling operators in Brazil, ensuring adherence to regulations and honesty within the industry. Brazilian legal entities must adhere to these strict criteria in order to continue or initiate their operations in the growing gaming market, granting the country essential oversight over its gambling sector.

A Gambling License in Brazil will be valid for a period of five years and requires a payment of BRL 30 million ($5.82 million). Existing legal entities in Brazil must ensure compliance with these new regulations by 31 December 2024.

Gambling Licensing Requirements in Brazil

Gambling Licensing Requirements in BrazilFor those looking to become a bookie in Brazil, here is what you will need to do. Under the Ordinance, only legal entities that are incorporated under Brazilian law as limited liability companies or corporations can apply. In addition, these entities must have their headquarter and administration in Brazil to qualify for a license to operate fixed-odds betting.

Licensed operators have the ability to manage up to three commercial brands through electronic channels under a single authorization. If operators wish to operate more than the permitted three brands, they must obtain an additional authorization by paying a fee of BRL 30 million, maintaining an extra financial reserve of BRL 5 million, and contributing a further BRL 15 million ($2.91 million) to the share capital.

Companies interested in conducting fixed-odds betting in Brazil can now submit their applications. The Gaming Authority will then review the submitted documentation and make a decision within a maximum of 150 days. Following this period, the Authority will notify the applicant to pay the authorization fee, provide any missing information, or issue a denial.

The Ordinance stipulates that authorization requests must contain documentation verifying the company’s legal, tax, and labor compliance, as well as its financial and technical qualifications. In case of rejection due to inadequate or falsified documentation, the applicant has the option to file an administrative appeal within ten days of notification, promoting transparency and responsibility.

Companies submitting their authorization requests within 90 days of the Ordinance’s publication are assured that their approval will be announced by 31 December 2024, provided they fulfill all legal requirements. Additionally, authorized operators are required to keep their documentation updated throughout the validity of their authorization, with the Gaming Authority having the authority to request proof of compliance at any given time.

Gambling In Brazil

Gambling In BrazilAccording to the Brazilian Civil Code, bets are classified as contracts, meaning that only individuals who have reached the legal age of 18 are permitted to engage in gambling activities. Additionally, the Brazilian Child and Adolescent Protection Statute strictly prohibits the entry of children and teenagers into establishments where billiards, snooker, and gambling take place.

Throughout its history, Brazil has maintained a regulated gambling market, with exclusive authorization granted to state-owned lotteries and horse-race wagering.

During a brief period in the 1990s, bingo and slot machines were permitted. However, they were subsequently prohibited in the mid-2000s through a court order to solidify the country’s strict stance on gambling.

On the other hand, until last December, Brazil never had any gambling regulations for sports betting and online casinos. Thus, until that point, the country had no enforceable law or any regulations in regards to gambling.

At least until December of 2023 when the Brazilian Senate passed its gambling regulation for sports betting and online casinos.

The Gambling Market in Brazil

Brazil holds great significance in various sectors due to its status as the seventh-largest country in terms of population. Thus, it is not a surprise that it holds a great amount of interest amongst sports betting and gambling operators. In fact, it has long been one of the most lucrative gray markets for online gambling operators.

Furthermore, gambling analysts estimate that over 20 million Brazilians gamble on a regular basis. In addition, they project that its online gambling market will reach $1.9 billion in 2024 and read $4.03 billion by 2029.

Last month, several sportsbooks like DraftKings and MGM Resorts International began to look into entering the Brazilian Gambling Market. Considering that it is the tenth largest gambling market in the world, that is not a surprise to anyone.

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