Oddsgate positively views the latest ordinance from the Ministry of Finance that establishes new directions for "bets" to operate in a regulated manner in Brazil. This update brings important changes that will significantly impact the online betting market, according to an analysis by Óscar Madureira, Chief Legal Officer (CLO) of the company.
From October 1, 2024, companies operating in this segment that have not yet requested authorization to operate in the country will have their activities suspended. This decision marks a crucial point in the process of regularization and control of the online betting market in the country, with the aim of promoting a safer environment for bettors and increasing federal revenue.
Óscar Madureira, Chief Legal Officer (CLO) of Oddsgate, evaluates this action by the Ministry of Finance as an important advance for the sector, highlighting that the initiative anticipates measures to combat the illicit exploitation of fixed quota bets; stating:
“In addition to being an important step towards ensuring that the Brazilian market is only operated by licensed entities, these types of actions also aim to convey to operators a stance that the state will not be complicit with illicit operations. For Oddsgate, this is another positive signal from the Brazilian regulator”.
Main points of this update:
- Suspension of operations: Companies that have not requested authorization by September 16, 2024, will be classified as illegal and will have their operations suspended starting October 1 of the same year. This measure is part of a government effort to ensure that only regulated companies can operate in the country;
- Deadline for regularization: The suspension of these companies' activities will last until they submit a request for authorization to the Secretariat of Prizes and Bets of the Ministry of Finance. Operations can only be resumed after the permission is granted;
- Companies in the process of authorization: For those companies that have already requested authorization but were not yet operating, the government has established that operations can only begin in January 2025, if they obtain clearance from the Ministry of Finance;
- Severe penalties: Companies that decide to operate without the proper authorization will be subject to significant fines, which can reach up to R$ 2 billion per infraction. This reinforces the government's commitment to ensuring compliance with the new norms;
- Analysis process: So far, the Ministry of Finance has already received 113 requests for authorization from 108 companies interested in operating legally in Brazil starting in January 2025. These numbers show the growing interest in the Brazilian market and the progress in the regularization process;
- New requirements for 2025: Starting next year, authorized companies will have to meet new rules, including the obligation to operate with the ".bet.br" domain, have headquarters in Brazil, and have a Brazilian partner with a minimum of 20% participation in the capital;
- Estimated revenue: If all companies meet the requirements, the Ministry of Finance estimates that revenue could reach R$ 3.4 billion by the end of 2024, just from the payment of grants for operation.
These measures are part of a continuous effort by the Brazilian government to organize and regulate the online betting market in the country. Thus, it is a new step in building a structured and regulated betting market, aligned with international best practices.
In light of the changes, Madureira expresses confidence in the regulation of the B2B platform company, highlighting that it is already fully prepared to operate in the regulated market, strictly complying with all established requirements. Additionally, he expresses support for the new measures, as he states:
“As a company that will operate in the regulated market of Brazil, Oddsgate welcomes this initiative from the Ministry of Finance and hopes that this type of action can create conditions for affirming the commitment to regulation and credibility of that market, notably because this type of initiatives protects all companies seeking to operate legally, in respect of the rules imposed by current legislation and, among others, contributing to tax collection”.
In addition to this preparation, the company also offers full support to clients who wish to operate in compliance. Approaching its second year, Oddsgate already has GLI-13, GLI-33, and GLI-19, as well as licenses to operate in Romania, reinforcing its commitment to compliance and data integrity.
To ensure data protection, the company uses payment methods certified by the Ministry of Finance and strictly follows the guidelines of the responsible gaming policy, such as self-exclusion mechanisms.
Madureira adds that, although Brazil is sending a clear message to the industry, the challenge is just beginning: “It is certain that this will have to be a reiterated and continuous effort, as there will always be those who try to operate illegitimately and outside the control of the regulator”.
And he concludes: “For now, this is certainly a good sign that Brazil is passing to the industry”.
Oddsgate is a leader in the iGaming industry, offering a complete SaaS platform. It guarantees efficient integration and development from scratch in up to 30 days.
Committed to quality, it has a customer-oriented philosophy, with global operations and the best market solutions in Sportsbook, Casino, CRM, payment systems, and affiliate systems.
Source: GMB
