The Finance Ministry on Wednesday published new operating rules for sports betting platforms, requiring them to have corporate offices in Brazil by no later than December 31, 2024.
Betting platforms are also required to have customer service channels in Brazil for bettors, as well to follow policies to prevent money laundering.
Currently, sports betting platforms operate outside of Brazil, although they air ads on Brazilian TV and sponsor the country’s football teams in football’s top division.
Platforms will also be required to pay a license fee of BRL 30 million (USD 5.8 million) in order to operate up to three brands for five years.
Back in October 2023, the ministry had opened a registration process for companies that wished to obtain licenses. Those who did so at the time will be given priority now. Additionally, companies that submit their requests in the next 90 days are guaranteed to have them analyzed by the end of the year.
In a statement, the Finance Ministry said it expects to issue the first licenses by the end of the year.
Many forms of gambling are illegal in Brazil. In 2018, the Michel Temer administration issued an executive order permitting sports betting as a new form of lottery, but regulation remained pending, leaving the practice in a gray area. In late 2023, Congress approved legislation with further rules.
Back in August 2023, The Brazilian Report revealed in an exclusive story that the Luiz Inácio Lula da Silva administration caved in to betting platforms and initially refrained from taxing all winnings from sports betting, despite technical recommendations from staff at the Finance Ministry and Brazil’s Federal Revenue Service. The president later changed his mind.
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