Notícias
2024 OVERVIEW
Regulations introduced by the Secretariat of Prizes and Betting will place Brazil in a regulated betting market by 2025
The year 2024 saw significant progress in regulating Brazil's fixed-odds betting market, spearheaded by the Ministry of Finance. Since its inception, the Secretariat for Prizes and Betting (Secretaria de Prêmios e Apostas/ SPA-MF) has introduced key regulations to organize the sector, which had operated haphazardly since betting was legalized in 2018.
The regulatory framework will take effect in 2025, marking the start of full operations in the regulated betting market. Beginning in January, only companies authorized by the SPA will be permitted to operate legally in Brazil. Non-compliant operators will be classified as illegal, have their activities terminated in the country, and face bans on advertising and sponsorships.
CONTEXT AND REGULATIONS - With the legalization of fixed-odds betting in Brazil in 2018, the sector expanded rapidly but lacked clearly defined rules. The absence of regulation and oversight paved the way for the emergence of unregulated platforms and made it difficult to monitor financial transactions.
Following the regulations finalized in 2024, the federal government aims to provide greater market predictability, safeguard bettors and the national economy, and reinforce Brazil’s image as a country committed to international best practices.
The new rules aim to address existing issues by mitigating risks associated with betting, such as problem betting and excessive debt. To achieve this, the measures include financial flow controls, a ban on credit for betting, the elimination of sign-up bonuses, and mandatory identification of bettors through their Individual Taxpayer Registration (CPF) and facial recognition. These actions enhance security and strengthen enforcement of the prohibition on the participation of minors, fostering a safer and more responsible betting environment.
The regulatory framework also demands tighter oversight of financial transactions and bettor behavior. The rules mandate continuous monitoring of transactions, detection of unusual activities, and the implementation of containment measures such as alerts, timeouts, and even betting suspensions. The goal is to enhance financial security and prevent misuse of the platforms.
Exigencies for legal operations also include adhering by norms related to prize payment methods, money laundering prevention, and responsible betting practices. Authorized companies must be constituted according to national legislation and operate exclusively through websites with “.bet.br” domains to reinforce consumer security, indicating legal and regulated environments.
The SPA will be responsible for controlling and overseeing operations through an internal system, making Brazil one of the few countries with a centralized data bank receiving daily updates on betting activities. This system will allow the Government to monitor the behavior of bettors, track the volume of funds moved, prizes paid, and accumulated losses, and enable more efficient control of the calculation bases for taxation.