New regulator authorises 71 licences for online gambling in Brazil
The SPA has approved 71 out of 114 licence applications ahead of the launch of regulated online gambling.
Brazil.- The new Brazilian gambling regulator, the Secretaria de Prêmios e Apostas (SPA) has announced that it has granted 71 federal online gambling licences ahead of the launch of long-awaited regulated online gambling from January 1. The regulator approved 71 of the 144 licence applications that it had received by the October deadline.
SPA president Regis Dudena told the Parliamentary Commission of Inquiry (CPI) on the upcoming market that those approved had met the necessary criteria, including passing technical requirements for IT security and payment processing, licensing standards, anti-money laundering (AML) protocols and responsible gambling measures.
The 71 applicants were approved to go ahead and pay the fee of R$30m (€5m) for a five-year online gambling licence allowing up to three skins each. Some 16 applicants have already paid the fee, which operators were given 30 days to pay.
Dudena told the CPI: “Seventy-one companies have already been notified by the Ministry of Finance and have 30 days from the notification to meet these final requirements. Of these, 16 have already paid the license fee. Up to today, 16 companies have paid a total of R$480m in licensing fees to the Ministry of Finance.”
Dudena stressed that all licensees must show compliance with the new regulatory framework from January 1, including those already active on the grey market. “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.”
Recent changes include a prohibition on using welfare funds for gambling and on the advertising of gambling to under 18s in sports sponsorships and media platforms. In other recent changes, the Ministry of Finance has published a new ordinance on the transfer of gambling data.
The launch of regulated online gambling in Brazil on January 1 may not mean an end to changes to the framework. The Senate is considering the introduction of so-called sin taxes on some verticals following the presentation of a proposal from senator Eduardo Braga of the Movimiento Democrático Brasileño.
Meanwhile, a vote on legislation proposing the legalisation of land-based casinos has been put back to next year pending an evaluation by the Ministry of Health into the potential impact on Brazil’s United Health System (SUS) and Unified Social Assistance System (SUAS). Bill No. 2,234/2022 would permit land-based casinos, horseracing, betting, bingo and jogo do bicho (instant win) sales, lifting then-president Gaspar Dutra’s 1946 decree banning casinos from Brazil’s municipalities and districts.
