There are more delays in launching betting in the widely anticipated Brazilian market after it was announced that the Ministry of Sport will have 45 days to assess license applications, iGaming Business reported May 24.
The first steps toward opening the largest gaming market in South America were taken in December 2023 when incoming President Luiz Inacio Lula da Silva signed Bill 3,626/2023. It legalized the creation of a regulatory architecture for gaming, including sports betting.
This new 45-day period was in addition to the 150 days that had been given to the Prizes and Betting Secretariat (SPA) to vet license applications. The additional time was part of the Inter Ministerial Ordinance No 28 that was published May 22 in Brazil’s Official Gazette. Ordinance No. 27, published earlier, gave the SPA its 150 days to comment.
The ordinance establishes exactly what the Ministry of Sport’s responsibilities are — including a 45-day comment period for applications.
Operators have until December 31, 2024 to comply with the regulated Brazilian market. After that scofflaws will be subject to penalties. It will also be illegal to advertise unlicensed operators past that date.
Fabio Kujawski, a partner at the Brazilian law firm of Mattos Filho, told iGB, “As of 1 January 2025, all operators that have not secured a license will be deemed as operating illegally and may have [their] URLs blocked by determination from the ministry of finance.” He added, “So, the problem is actually bigger than simply receiving the license later, but to be no longer authorized to operate or to advertise – note that advertising from unlicensed operators will also be deemed unlawful as of 2025.”
Another industry-savvy attorney, Andre Santa Ritta at Pinheiro Neto Advogados, told iGB that the pressure will be on. “Indeed, the timeline is daunting to say the least, but the ministry is confident they should be able to achieve it,” he said.
He predicted that more government workers will have to be brought on in coming weeks to meet the deadline.
SPA and the Ministry of Sport will be jointly responsible for monitoring betting integrity. According to Ordinance No. 28, which goes into force June 3: “The prizes and bets secretariat of the ministry of finance and the ministry of sports are responsible for ensuring, within the scope of their powers, the integrity of the unpredictability of events and sporting results, which are the subject of fixed-odd bets.”
The roll-out of the market is in four stages, and is midway, with full regulation expected by the end of July. The first two stages deal with technical, payment and security requirements. Money laundering and anti-terrorist financing policies that casinos must follow.
The last two stages will include rules for security for online gaming, and how the sector must help fund socially responsible causes.
