As a casino journalist reporting on the latest developments in the Brazilian online gambling market, it is clear that the deadline for licence applications from operators hoping to operate in Brazil during the transition period has caused quite a frenzy. With the deadline closing at 11.59pm on September 30th, a late surge in requests has brought the total number of applications to 182.
In mid-September, the Brazil government issued Normative Ordinance No 1,475, outlining plans to take enforcement action against operators who failed to submit a licence application by October 1st. Only companies that were already active and had applied for a licence would be permitted to continue operating during the transition period between October 1st and December 31st, leading up to the official launch of the legal online market on January 1st, 2025.
This marks the second crucial licensing deadline in Brazil, following the initial closing of the 90-day preference window on August 20th. The 113 operators who applied during that period ensured their applications would be processed by the Secretariat of Prizes and Bets (SPA) ahead of the official market launch date.
The announcement of the October deadline prompted a significant increase in the number of applications, with nearly 70 companies submitting requests before the deadline, bringing the total to 182. Although most applications were submitted on time, Tecnologia e Desenvolvimento Ltda’s application was registered on October 1st, missing the deadline.
Companies were required to disclose to the SPA, under the Ministry of Finance, which brands and domains they intended to operate during the transition period. For companies that missed the licence application deadline, their websites will be blocked starting on October 10th. They must allow bettors to withdraw funds before the shutdown.
Brazil’s Minister of Finance, Fernando Haddad, indicated on September 30th that between 500 and 600 betting sites are expected to be blocked from October 10th. Companies that have applied for a licence but are not currently active in Brazil will have to wait until January 1st to commence operations, pending authorization.
Normative Ordinance 827, issued in May, stipulated that operators active without the necessary federal licence would face penalties starting on January 1st, 2025. The potential sanctions, as outlined in Normative Ordinance 1,233, include fines of up to BRL2bn and a ban on applying for licences or accreditations for up to 10 years.
It is important to note that these measures appear to be enforced starting from January 1st, 2025. While specifics remain unclear, it seems that the SPA will only implement website blocking until that date. Eduardo Carvalhaes and Karen Coutinho, lawyers from the Brazilian law firm Lefosse, believe that the revised October deadline will help alleviate concerns among companies seeking licences regarding the presence of illegal operators.
