The Ministry of Finance of Brazil announced the successful completion of the licensing phase and the opening of the bets market, which will operate from January 1, 2025. This marks a historic moment in the realm of regulated online gambling and sports betting, setting a new standard for the betting industry in South America.

Insight into Brazil bets market

Brazil refers to the broader online gambling and sports betting industry that operates under government regulations. This programme implements stringent licensing and monitoring mechanisms with the intention of creating transparency, guaranteeing consumer protection, and offering economic advantages. The journey towards regulating online betting began with legislation and culminated in the Ministry of Finance’s announcement in 2024. Licensing was finally completed on December 30, 2024, ensuring readiness for 2025 for all stakeholders.

Licensing process and key statistics

The Secretariat for Prizes and Betting (SPA) played a pivotal role, overseeing the entire licensing process to ensure adherence to stringent standards. This four-phase review process includes ensuring robust IT security protocols to protect user data, facilitating secure and efficient payment processing, strict compliance with AML/CTF regulations to prevent money laundering or terrorist financing, and promoting ethical gambling practices through responsible measures.

Since the licensing application period closed in September 2024, there have been 150 licence requests submitted from 145 companies, with 68 of these businesses holding full licences and paying the requisite concession fee of €5 million, in addition to the initial lump sum of over €380 million. These numbers showcase the viability of the market.

Global giants like Betfair, bet365, Stake.com, and Entain Plc’s brands (Betboo, SportingBet) have entered the market, signifying international confidence in Brazil’s framework. Several local operators are also positioned to compete, reflecting the growth of domestic industry expertise.

The document, signed by SPA President Regis Dudena, came into force on December 30, 2024. Dudena previously stated, “Starting January 1, all companies operating in Brazil will need to be Brazilian entities established under Brazilian law. We’ll know their shareholders, ultimate beneficiaries, and executives, ensuring complete oversight of both legal entities and individuals involved in this activity.”

Impact on Brazil gambling market

Operators need to register via the Financial Activities Control System (Siscoaf) to take advantage of swift payment processing and value-chained registration to their report, guided by strict Anti-Money Laundering and Counter Terrorism Financing measures, which embody risk reduction. This guarantees compliance with the country’s financial laws and supports the legitimacy of the market further.

So far, the government has generated millions in revenue through initial licensing, with more expected through ongoing taxation. Regulated markets are projected to create thousands of jobs and revitalise various subsidiary sectors such as technology, media, and advertising.

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