Unauthorized sports betting operations suspended starting October

Sports betting companies that have not yet requested authorization to operate in Brazil will have their activities suspended from October 1, 2024, according to an announcement from the Ministry of Finance. According to Regulation SPA/MF No. 1,475, published on September 16, 2024, in the Official Gazette, only companies currently operating and having submitted authorization requests by the regulation’s publication date will be granted a temporary continuation of operations.

This measure is part of the process of regulating the fixed-odds sports betting market in Brazil, which will come into effect on January 1, 2025. The Regulation also stipulates that: (i) companies that have requested authorization but are not yet in operation must wait until January to start their activities; and (ii) existing operational companies with authorization requests must inform the Ministry of Finance by September 30, 2024, regarding their exploited trademarks, quantity, and corresponding internet domains. This ensures website accessibility during the transition period.

The government, in collaboration with the Ministry of Justice, the Central Bank, and Anatel, emphasizes its commitment to enforcing these regulations. Additionally, we remind that from 2025, authorized companies will need to operate under the Brazilian domain “.bet.br” and must meet other legal obligations, including a payment of R$30,000,000.00 (thirty million reais) for the concession and compliance with rules against fraud, money laundering, and abusive advertising.

Our team is monitoring all developments on this matter, as well as its impacts in Brazil. For further information, please contact us at felipe.monteiro@kasznarleonardos.com.