Brazil: SPA to halt unauthorized gambling firms starting in October

The Prizes and Betting Secretariat (SPA) has established a deadline for betting companies wishing to operate in Brazil to secure the necessary authorization.

Operators that have not applied for permission to conduct business in the area will have their operations halted starting from October 1, until they obtain approval from the SPA.

Consequently, only those operators already functioning and who have submitted their applications to engage in the fixed-odds lottery betting format before this deadline will be allowed to continue their operations.

This indicates that, as of October, any operators that have not sought authorization through the Ministry of Finance’s betting management system, SIGAP, will be considered illegal until they receive clearance from the Treasury.

This announcement precedes the launch of the regulated betting market in Brazil, set to commence on January 1, 2025, at which point only operators adhering to the relevant laws and regulations will be permitted to operate.

There has been a strong demand for operations in the region, with Gaming America reporting at the end of August that the country had received 114 applications for iGaming licenses.

Regis Dudena, the Secretary of Prizes and Bets at the MF, stated, “We will extend the adaptation period until the end of December solely for those who have already shown their intention to comply with the law and adhere to Brazilian regulations. Numerous police operations have revealed companies engaging in illegal activities within the betting market. This approach allows us to begin distinguishing between legitimate operators and those who are not before January.
“Our aim is to safeguard the mental, financial, and physical well-being of bettors by preventing companies that exploit sports betting and online gaming as tools for fraud and money laundering.”