Brazil is cracking down on unlicensed gambling operators ahead of the launch of its regulated gambling market. The Ministry of Finance has declared that these operators must cease operations by October 1. This move comes as Brazil prepares to launch a federal, regulated gambling market on January 1, 2025.
For years, gambling companies have operated in a largely unregulated gray market in Brazil. However, with the upcoming launch of the regulated market, the government is taking steps to ensure that all operators are compliant with the law. Companies that have failed to apply for a license and are still operational have just two weeks to shut down before facing legal consequences.
Companies that have already applied for a license and are currently operating will be allowed to continue doing so. The General Secretary of the Secretariat for Betting and Prizes, Regis Dudena, stated that an adaptation period will be maintained until the end of December for those who have demonstrated a willingness to comply with Brazilian regulations.
So far, 113 companies have applied for gambling licenses ahead of the 2025 launch. These applications require a payment of R$30 million ($5.48 million) to be submitted before the end of 2024. To ensure compliance, Brazil has already begun cracking down on payments received by operators that do not meet the necessary requirements.
The government’s efforts to regulate the gambling market in Brazil are aimed at creating a fair and transparent industry that operates in accordance with the law. By closing down unlicensed operators and requiring all companies to apply for a license, Brazil is setting the stage for a well-regulated gambling market that will benefit both operators and consumers.
Overall, the crackdown on unlicensed gambling operators in Brazil is a significant step towards establishing a regulated and compliant gambling market in the country. With the launch of the regulated market on the horizon, operators are being held accountable for their actions and required to adhere to strict regulations. This move will not only help to eliminate illegal gambling activities but also ensure a safer and more transparent industry for all stakeholders involved.