Starting this Tuesday (1st), online betting houses without authorization in Brazil will have to close their operations. The measure, announced by the Ministry of Treasury, aims to regulate sports betting and online games. Therefore, this measure promises to bring significant changes to the iGaming market in Brazil.
End of the unauthorized bookmakers
The suspension of operations will continue until bookmakers apply for authorization and await approval from the Prizes and Betting Secretariat of the Ministry of Treasury.
Anatel (National Telecommunications Agency) will play an important role in this process. By October 11th, unauthorized sites will be removed. Minister Fernando Haddad stated that around 600 pages and applications are targeted for blocking.
In addition to the suspension of activities, the ministry established a period of ten days for bettors who have a balance on irregular websites to redeem their amounts.
Haddad warned: “If you have any money at the betting house, ask for a refund now, because you have the right to have the amount refunded. We are already warning everyone.”
How does the authorization process work?
Companies that have requested authorization can check their status in the Betting Management System (Sigap) of the Ministry of Treasury. As of September 30, 162 applications from 158 companies have been registered, with 27 applications in the last seven days. But the forecast is that, between October and December, only authorized websites that already operated in Brazil will remain active.
According to the Ministry of Treasury, suspended companies can request authorization at any time. However, they must wait in a queue that can take months to analyze the necessary documentation and requirements. The government hopes to complete the analysis of the requests received so far by December.
Conditions for operation and penalties
After approval, the company must pay R$30 million in grant money to operate legally. Additionally, you can register up to three brands for five years. This requirement is provided for in Law 14,790/2023, which regulates online betting in Brazil.
Therefore, from January onwards, companies that operate without authorization will face severe penalties, including fines that can reach R$2 billion per infraction. So, this new regulation marks an important step forward towards the legalization of the sector, providing more security and transparency for bettors and investors.
