Brazilian government sets exit deadline for unlicensed operators
Firms which have yet to apply for a licence for newly regulated market will have operations suspended from 1 October by taskforce led by Ministry of Finance
Brazil’s Ministry of Finance has set a deadline of 1 October for operators, which have not yet applied for a sports betting and igaming licence, to cease operations and leave the market.
The firms will be classed as illegal from the deadline onwards and will be able to resume operating only after obtaining permission from the ministry’s prize and betting secretariat (SPA), the subdivision which will serve as the market regulator.
Operators yet to apply for a licence will be able to keep respective websites live until 10 October, giving customers a chance to withdraw any deposited funds.
From 11 October, implicated sites will be banned and taken offline, with the SPA working with the Ministry of Justice and Public Security, the Central Bank of Brazil and the National Telecommunications Agency to shut down the platforms.
This is in preparation for the launch of Brazil’s regulated sports betting market, set to go live in January 2025.
Last month, the Brazilian government confirmed that 113 operators had applied for a sports betting and igaming licence before the initial 20 August deadline.
Those companies, which will each have to pay BRL30m (£4.3m) for a five-year licence, will be able to continue to operate in the grey market until the end of 2024.
The Ministry of Finance also confirmed those operators have until 30 September to confirm which trademarks and domains will be used ahead of the market’s launch.
According to the regulations, licensed operators will be able to run three skins in the market from January.
Any Brazil-based operators that applied for a licence will be able to take advantage of an adaptation period, which runs until December, in order to become compliant with the new regulations.
SPA chief Regis Dudena said: “We will maintain the adaptation period until the end of December only for those who have already demonstrated that they want to act in accordance with the law, in accordance with Brazilian rules.
“Many police operations involving companies that operate in the betting market in a criminal manner have come to light. This was the way we found to not wait until January to start separating the wheat from the chaff.
“We want to protect the mental, financial and physical health of bettors, preventing the activities of companies that use sports betting and online games as a means of committing fraud and money laundering.”
Elsewhere in Brazil, Flutter is set to acquire 56% of NSX Group, the UK-based company behind Betnacional.
Flutter said the move would help it achieve its podium position aspirations in Brazil by combing the group with Betfair while shuttering the PokerStars Casino and sportsbook.