Government Regulates Betting Market: 66 Companies Authorized to Operate in Brazil
With new rules effective January 1st, the online sports betting market is officially regulated, bringing greater control and security to the sector.
The Lottery House
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A New Era for Brazil's Betting Market
The online sports betting market in Brazil has entered a new phase. On Tuesday (12/31), the federal government, through the Secretariat of Prizes and Betting of the Ministry of Finance, published ordinances in the Official Gazette of the Union (DOU) authorizing 66 companies to operate in the country. Among these, 14 companies received definitive authorization, while 52 others received temporary authorization pending technical regularization.
The regulation, which takes effect on January 1, 2025, aims to address structural issues in the sector and provide greater security for bettors. Discover the changes, rules, and impacts of this new scenario in the online sports betting market.
A Regulated Market: What Changes for Betting in Brazil
The start of 2025 marks the formalization of a fixed-odds betting market in Brazil, aligned with the new rules of the law sanctioned by President Luiz Inácio Lula da Silva in December 2023. From now on, companies wishing to operate in the country must meet a series of legal requirements, paying a R$ 30 million fee to obtain a five-year license.
The regulation requires platforms to operate with a ".bet.br" domain and follow strict rules on financial control, anti-money laundering, cybersecurity, and responsible gambling practices. Key implemented rules include:
· Prohibition of credit and entry bonuses for betting;
· Mandatory identification of bettors via CPF (taxpayer identification);
· Facial recognition for registration;
· Strict control over financial flows.
Additionally, companies that fail to comply with the rules will face severe penalties under the law.
Companies Authorized to Operate
The published ordinances divided the companies between definitive and temporary authorizations. Among the 14 companies with definitive authorization are well-known brands like Pinnacle, Matchbook, galera.bet, and Betnacional. Among the 52 companies with provisional authorizations are popular names like Betano, Sportingbet, Bet365, and Betfair, which have 60 days to resolve issues related to system certification and technological integration.
The Impact of Regulation on the Betting Sector
According to the Ministry of Finance, regulation extends beyond administrative control of the companies. It aims to mitigate risks associated with betting, such as over-indebtedness and the exploitation of vulnerable individuals.
Rules for Participation
The law also sets strict criteria for bettors. Minors under 18, individuals with privileged access to the betting system (such as athletes, referees, and sports officials), and individuals diagnosed with gambling addiction are prohibited from participating.
Restrictions for Employees and Owners
To avoid conflicts of interest, individuals directly linked to betting companies or those who can influence game outcomes, including public officials responsible for sector oversight, are also barred from betting.
Regulation of Advertising
Betting companies must adhere to specific advertising and marketing guidelines, avoiding deceptive practices and promoting responsible gambling.
Protection for Bettors
The regulated market offers benefits such as combating money laundering, monitoring financial flows, and creating a structure that encourages safe practices for consumers.
The Role of the "Bets Law" in Transforming the Sector
The law sanctioned in December 2023 not only regulates online sports betting but also establishes guidelines for the operation of casinos and online games in Brazil. The legislation includes clear rules regarding market exploration, advertising, and penalties for illegal practices.
Restrictions for Employees and Owners
To avoid conflicts of interest, individuals directly linked to betting companies or those who may influence game outcomes are prohibited from participating, including public officials responsible for overseeing the sector.
Online Casinos
Another point included in the regulation is the creation of rules for online games and casinos, which must operate under the same security and responsibility criteria applied to sports betting.
The Future of the Betting Market in Brazil
With official regulation, Brazil’s online sports betting market takes an important step toward safety and sustainable growth. According to the government, formalization will enable higher tax revenue and address historical issues in the sector, benefiting both consumers and the market as a whole.
Additionally, a regulated environment brings greater transparency to bettors, encouraging ethical practices and protecting vulnerable individuals.
Betting on the Future: A Safer and Regulated Market
The regulation of sports betting in Brazil marks a new era for the sector. With clear rules and measures aimed at protecting consumers, the market positions itself as an opportunity for economic growth and the promotion of responsible gambling.
For bettors, the start of 2025 is a time to celebrate the arrival of a safer and more transparent environment. For companies, the challenge is to adapt to the new requirements and demonstrate a commitment to best practices.
With the regulated market, Brazil opens the door to a promising future in the sports betting sector, balancing opportunities and responsibilities in a scenario that promises innovation and security for everyone involved.