TV Bandeirantes is preparing to enter the online betting market in Brazil. In seeking partnerships with betting companies, Band faces challenges regarding the percentage of society.
The broadcaster intends to maintain 80% control of the business, which has made agreements difficult.
But it’s not just TV Bandeirantes that wants to invest in online betting, TV Globo has also shown interest in the sector. The broadcaster has already sent the government an expression of interest to operate sports betting in the country.
New rules for online bookmakers
On May 22nd, the Ministry of Finance published an ordinance. Therefore, bookmakers will have to follow new rules and conditions if they want to obtain authorization to operate in Brazil.
According to the Ministry of Finance’s Prizes and Betting Secretariat (SPA), bookmakers have until the end of 2024 to meet the criteria defined to obtain authorization. Since, from January 1, 2025, companies without authorization will be subject to penalties, such as the suspension of their websites.
But the operation is not automatic, the deadline for analyzing requests will be up to 180 days. However, as a transition rule, companies that requested authorization until March of this year will have priority in the analysis.
The authorization orders for this initial group will be published simultaneously. According to the government, the first authorizations will be issued by the end of the second half of 2024.
Criteria for betting operations in Brazil
The Ministry of Finance ordinance establishes that bookmakers must meet criteria in five main categories:
- Legal qualification
- Tax and labor regularity
- Suitability
- Economic-financial qualification
- Technical qualification
Therefore, the criteria were defined with the aim of protecting bettors and ensuring that authorized companies have a governance structure compatible with the complexity and risks of the business. Among the requirements are:
- Net worth must be at least R$30 million
- Headquarters and service channel in Brazil
- Anti-money laundering and terrorist financing policies
- Promoting responsible gambling and preventing match-fixing
- Good advertising and advertising practices
Therefore, companies that meet all the defined criteria and pay R$30 million to the Union will be authorized to operate up to three commercial brands in the national territory for a period of five years.
