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Óscar Madureira, Chief Legal Officer (CLO) of Oddsgate, evaluates this action by the Ministry of Finance as an essential advance for the sector, highlighting that the initiative anticipates measures to combat the illicit exploitation of fixed-odd betting, stating:
“In addition to being an important step towards ensuring that the Brazilian market is only operated by licensed entities, these types of actions also aim to convey to operators a position that the state will not collude with illicit operations. For Oddsgate, this is another positive sign from the Brazilian regulator.”
Suspension of Operations: Companies that did not apply for authorization by September 16, 2024, will be classified as illegal and will have their operations suspended starting October 1 of the same year. This measure is part of the government’s effort to ensure that only regulated companies can operate in the country.
Deadline for Regularization:
These companies' activities will be suspended until they submit an authorization request to the Ministry of Finance’s Prize and Betting Secretariat. Operations can only resume after permission is granted.
Companies in the Authorization Process:
For companies that have already applied for authorization but were not yet operational, the government has established that operations can only begin in January 2025, provided they receive approval from the Ministry of Finance.
Severe Penalties:
Companies that choose to operate without proper authorization will be subject to significant fines, which can reach up to R$ 2 billion per violation. This underscores the government’s commitment to enforcing compliance with the new regulations.
Review Process:
So far, the Ministry of Finance has received 113 authorization requests from 108 companies interested in legally operating in Brazil starting in January 2025. These figures highlight the growing interest in the Brazilian market and the progress in the regularization process.
New Requirements for 2025:
Starting next year, authorized companies will need to comply with new rules, including the requirement to operate with a ".bet.br" domain, have headquarters in Brazil, and include a Brazilian partner with at least 20% ownership in the company.
Projected Revenue:
If all companies meet the requirements, the Ministry of Finance estimates that revenue could reach R$3.4 billion by the end of 2024 solely from operating license fees. These measures are part of an ongoing effort by the Brazilian government to organize and regulate the country's online betting market, marking a new step towards building a structured and regulated betting market aligned with international best practices.
Beyond this preparation, the company also offers full support to clients wishing to operate in compliance with the regulations. Approaching its two-year anniversary, Oddsgate already holds GLI-13, GLI-33, and GLI-19 certifications, as well as licenses to operate in regions such as Romania, Asia, Africa, among others, reinforcing its commitment to compliance and data integrity.
The company uses payment methods certified by the Ministry of Finance to ensure data protection and strictly follows responsible gambling policy guidelines, such as self-exclusion mechanisms.
Madureira adds that, while Brazil is sending a clear message to the industry, the challenge is just beginning: “It is certain that this will have to be a repeated and continuous effort, as there will always be those who attempt to operate illegitimately and outside the control of the regulator.”
And he concludes: "For now, this is undoubtedly a good signal that Brazil is sending to the industry."
