The online betting market in Brazil is just a few months away from major changes. From January 2025, increased regulation under the provisions of Law 14.790/23 will further professionalise the sector, with significant implications for fixed odds betting.
Approved by the federal government this year, the so-called 'betting law' is a milestone in the consolidation of the sector. Until then, the market had operated in the country with less comprehensive regulation, which posed challenges in terms of security and transparency. The new regulations have made the betting market safer and more professional.
In recent years, online betting has gained popularity in Brazil and has become a hobby for many people. In fact, with a population that is widely connected to the Internet, especially via mobile devices, gambling addiction is gaining ground. However, the market required stricter regulation - and one of the aims of regulating operations is to provide a safer environment for all involved. With the publication of Law 14.790/23, these changes began to be defined.
Among the requirements is the need for authorisation from the Ministry of Finance for companies wishing to operate in the sector. Tax issues for both operators and players have also been regulated.
With the creation of the Secretariat for Prizes and Betting (SPB) this year, the Ministry of Finance is now responsible for fixed odds betting, commercial promotions, charity raffles, lotteries, and the early collection of popular savings. As part of its duties, it authorizes, grants, regulates, standardizes, monitors, supervises, inspects, and sanctions according to current legislation. As a result, several aspects of the new betting law will be supervised by the SPA starting in 2025. The following points are among the novelties:
With the aim of creating a healthier environment for all, one of the objectives of the regulation of online betting in Brazil is the fight against compulsive behaviour. Therefore, it will be the responsibility of the operator to implement a system to control playing time in order to prevent players from spending long periods on betting sites. For example, players should receive a warning when they reach a certain limit, with access being interrupted and blocked.
Another new feature is the requirement for players to self-declare their income. This is intended to enable operators to see how much players are earning and how much they are spending on betting. For the time being, it won't be necessary to send supporting documents. However, according to the Ministry of Finance, it is expected that this will be required in the future for registration on the platforms.
The fight against fraud and money laundering, such as the use of false identities, must be a priority in the betting industry. Therefore, to prevent these situations and to guarantee a more reliable and transparent environment, biometric authentication with facial recognition of the bettor will be required. This measure will help avoid the use of third-party identities, thus promoting greater security in online betting.
All online betting sites in Brazil will have to be hosted at an address with a 'bet.br' domain. With this unification, the government intends to facilitate the identification and control of betting companies in the country - meaning that any operator without a 'bet.br' domain will be considered irregular. Therefore, companies wishing to operate legally in the country from January 1st, 2025, must apply for authorisation by August 2024, as the analysis period by the SPA is up to 150 days.
With the increasing professionalism of the market, the future of online betting in Brazil is promising. However, to thrive in this environment, it is essential to have reliable partners.
That's why Bazk has teamed up with Banco Topázio, a financial institution specialising in online transfers, to guarantee a unique and complete solution for your business. This is Topázio Powered By Bazk, an efficient and robust product that combines our 6+ years of iGaming expertise with a banking institution that has been a benchmark in the Brazilian primary FX market for over 15 years.
With this solution, betting operators are guaranteed fast implementation, dedicated support, 24x7 operation, a management account, an investment reserve, and full integration for their international transactions. All this is provided with maximum transparency, security, and agility of two specialists in the market, combined in a single product.
Considering how close the compliance deadline is, we encourage you to book an appointment with our experts right away. So, if you are looking for a company that can bring efficiency and practicality to your operations in Brazil, contact us today!
