Brazil sets 2024 deadline for online casino licensing

Brazil sets 2024 deadline for online casino licensing

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Brazil sets 2024 deadline for online casino licensing

A new Brazilian Ministry of Finance regulation gives operators across the country until the end of 2024 to obtain regulatory licenses.

Ordinance SPA/MF nº 827 was released yesterday, May 21, by the Prizes and Betting Secretariat (SPA) of the Ministry of Finance. The order specifies the guidelines and requirements for operators looking to get a license to run online casinos in Brazil after regulations take effect. The legislation lets operators—including some of the biggest global ones—who are currently involved in Brazil’s gray market environment to apply for authorization.

A license must be obtained before the end of 2024 for any operator that ran in the previous environment. Regulators will, however, be imposing fines on companies that continue to operate without a license after January 1, 2025.

In order to obtain authorization from the SPA, operators need to fulfill five requirements: legal qualifications, adherence to labor and tax laws, suitability, economic and financial conditions, and technical standards. According to the ministry, these requirements were set in place to safeguard players and guarantee that operators have a corporate governance framework in place that can handle the challenges that arise.

Operators must also maintain a physical presence in Brazil, as well as good advertising approaches, RG systems, AML/CTF procedures that are effective, and betting integrity initiatives. After satisfying these requirements and paying the R$30 million (€5.38 million) license charge, operators will have the ability to provide customers with up to three brands for a period of five years.

180 days would be needed for the typical application process. But Brazil will permit a ninety-day procedure as a transitional measure. The SPA said it expects to issue the first licenses by the end of the second half of 2024.

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