The Brazilian government publishes rules regarding betting companies

The Ministry of Finance on Wednesday published new rules for the operation of sports betting platforms, requiring them to be based in Brazil no later than December 31, 2024.

Betting platforms are also required to have customer service channels in Brazil for players, as well as to comply with anti-money laundering rules.

Currently, sports betting platforms operate outside of Brazil, although they do run advertisements on Brazilian television and sponsor the country’s top soccer league teams.

The platforms will also be required to pay a licensing fee of BRL 30 million ($5.8 million) to operate up to three brands for five years.

Already in October 2023, the ministry launched the registration process for companies wishing to obtain licenses. Those who did it then will now have priority. Additionally, companies that submit applications within the next 90 days have a guarantee of their analysis until the end of the year.

The Ministry of Finance announced in its announcement that it expects the first licenses to be issued by the end of the year.

Many forms of gambling are illegal in Brazil. In 2018, Michel Temer’s administration issued an executive order allowing sports betting as a new form of lottery, but regulations have still not been adopted, leaving the practice in a gray area. In late 2023, Congress approved legislation containing further rules.

Already in August 2023 Brazilian report revealed in an exclusive article that the administration of Luiz Inácio Lula da Silva gave in to betting platforms and initially refrained from taxing all sports betting winnings, despite technical recommendations from employees of the Ministry of Finance and the Brazilian Federal Tax Office. Later the president changed his mind.