The Ministry of Treasury has clarified its stance through a rectified ordinance that emphasizes compliance and oversight for operators in the sports betting and online casino industry. The updates were published in the Official Gazette of the Union.
A New Regulatory Framework
The Ministry of Treasury reinforced the government’s commitment to eliminating illegal operators and overseeing a fully regulated market. The ordinance, spearheaded by the Secretariat of Evaluation, Planning, Energy, and Lottery (SECAP), mandates that operators secure official authorization to continue offering services within Brazil.
Unlicensed offshore casino sites, which have previously operated with no regulatory oversight, are now explicitly banned. The enforcement of these measures aims to ensure that all betting platforms comply with national laws, pay required taxes, and contribute to the economy.
Brazil Bans Offshore Gambling Sites Ahead of Regulated Market Launch- Tax Evasion: Offshore operators do not pay taxes and therefore do not contribute towards Brazil’s economy.
- Consumer Protection: Unregulated gambling sites often fail to provide safeguards against fraud, gambling addiction, and unethical practices.
- Fair Competition: Licensed operators face unfair competition from illegal entities that do not adhere to regulatory standards.
Transition to a Regulated Market
Brazil’s rectified ordinance also outlines the pathway for existing operators to legalize their activities. Licensed platforms will be required to adhere to strict guidelines, including:
- Paying licensing fees and taxes. Brazil Bans Offshore Gambling Sites Ahead of Regulated Market Launch Brazil Bans Offshore Gambling Sites Ahead of Regulated Market Launch Brazil Bans Offshore Gambling Sites Ahead of Regulated Market Launch
These measures are intended to formalize the industry by January 1st, 2025.
Brazil Bans Offshore Gambling Sites Ahead of Regulated Market LaunchBetfair, NSX Group, and Superbet Pay Licensing Fees
Betfair, NSX Group, and Superbet have all announced that they have paid in full the required fees for licensing in Brazil. All three currently operate betting and casino sites in the Brazilian market and have met the requirements for licensing. However, there has been no official announcement confirming the issuance of licenses.
An experienced iGaming commentator and analyst based in New York City - Jenny reports on regulation and gambling industry news and events.