The Secretariat for Prizes and Betting (SPA) has officially informed the concerned authorities about the approval granted to 71 enterprises for federal online gambling licenses. These businesses successfully met the necessary criteria for the market’s impending launch on January 1, 2025, as disclosed by SPA President Regis Dudena to the Parliamentary Commission of Inquiry (CPI) on Bets.
As of December 11, a total of 71 out of 114 applications have been authorized by the SPA. Approved businesses are required to pay an initial concession fee of R$30 million (€5 million) within a 30-day timeframe.
Starting from January 1, 2025, these licenses will be valid for a five-year duration, with the possibility to utilize up to three operations (“skins”) per license. Each authorized business must maintain a registered office in Brazil and have corporate accounts verified by the Bank of Brazil.
Dudena updated the CPI, noting, “Seventy-one companies have been notified by the Ministry of Finance. They must meet the final requirements within 30 days of notification. So far, 16 have already paid the license fee, contributing a total of R$480 million to the Ministry of Finance.”
### SPA Ensures Compliance with Licensing Standards
The SPA assures that all authorized businesses have successfully navigated the Bets’ four-stage modality review process, incorporating elements like IT security measures, licensing standards, payment processing, anti-money laundering (AML) mechanisms, game regulations, and responsible gambling protocols.
Established in February 2024 under the Ministry of Finance, the SPA was tasked with overseeing gambling operations and regulating market conduct among licensed operators.
A dispute between the Ministry of Finance and the ‘Centrao Block’ of Congress led to the resignation of José Francisco Manssur from his position as the Ministry’s appointed President of the SPA, paving the way for Regis Dudena’s appointment after negotiations.
Recently, Dudena confirmed the SPA is approaching the final stages of its licensing process for Bets, initiated in April with the release of initial technical guidelines related to payments and system approvals.
Final instructions have seen Brazil’s telecom authority, Anatel, collaborate with the SPA and Federal Police to dismantle 5,283 illegal betting sites in a series of operations, with additional efforts expected.
### Dudena: SPA Demands Full Compliance from Day One
To curb fraudulent activities, the SPA is enhancing efforts in collaboration with relevant authorities. This includes preventing the use of fake taxpayer IDs (CPFs) for account creation and launching a new system by January 2025 for accurate identification and robust regulatory enforcement.
Emphasizing the SPA’s mandate, Dudena stated that all licensees must exhibit total compliance with Bets’ market regulations from day one, stressing, “From January 1, all companies in Brazil must be Brazilian entities under Brazilian law. We will have clear knowledge of their shareholders, ultimate beneficiaries, and executives, ensuring comprehensive oversight of all legal entities and individuals involved.”
In 2025, the Bets market is anticipated to undergo additional changes as the Senate considers the introduction of selective taxes on gambling activities. This proposal, linked to Senator Eduardo Braga (MDB-AM) and the Federal Tax Reform Project, posits gambling activities as potential new criteria for such taxes.