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Brazil’s online gambling sector is set for a transformative launch as the Secretariat of Prizes and Bets (SPA) has issued 71 federal online betting licences ahead of the market’s official opening on 1 January 2025. This milestone marks the beginning of a regulated market that aims to reshape Brazil’s gambling industry, ensuring compliance, transparency, and stringent standards across all operations.
Regis Dudena, Secretary of Prizes and Bets at the Ministry of Finance, confirmed during a Parliamentary Inquiry Commission meeting that the SPA had notified the initial 71 applicants, with 16 already meeting the financial and technical requirements, including paying the R$30 million ($81.1 million total) concession fees.
“The final requirements here, in addition to technical necessities like betting system certification, are mostly financial—such as ensuring full capital, creating reserve accounts, and paying the concession fee,” Dudena explained. Dudena also emphasized SPA’s commitment to a meticulous four-stage review process that scrutinizes security protocols, payment systems, anti-money laundering (AML) measures, and responsible gambling practices.
As part of its market preparation, Brazil’s SPA partnered with the National Telecommunications Agency (Anatel) to target illegal gambling operators. Since 11 October, this collaboration has led to the blocking of over 5,200 illegal gambling sites, a significant step in curbing unregulated activities.
Carlos Baigorri, President of Anatel, underscored the importance of these measures: “We know it’s a challenging task to prevent Brazilians from accessing illegal sites, but cooperation ensures blocks are carried out efficiently, helping protect our market from unlicensed operators.”
Brazil’s licensing process has drawn substantial interest, with over 270 applications submitted by the initial 20 August deadline. Operators like Sportingbet, Caesars Sportsbook’s Big Brazil, Superbet, and Rei do Pitaco are among the applicants. Analysts predict Flutter Entertainment, the parent company of Betfair, will emerge as an early market leader, with projections estimating a 150% growth in its market share over the next five years.
However, several high-profile operators, including Betway, Vera&John, and AmuletoBet, have exited the licensing race. Super Group’s Richard Hasson cited profitability concerns as a reason for Betway’s withdrawal, emphasizing the need to focus on sustainable opportunities.
With the regulated market poised to launch in January, Brazil stands at the threshold of a new era in online gambling. The SPA’s stringent measures and licensing efforts demonstrate a commitment to creating a safe, competitive, and well-regulated environment.
While challenges remain—such as delays in approving land-based casino legislation—the groundwork laid by the SPA signals a promising future for Brazil’s gambling industry, setting the stage for innovation, growth, and global partnerships.
Sources: Gambling Insider, IGB
