Brazil Cracks Down on Unlicensed Betting Firms in New Ordinance
In a move aimed at combating money laundering and protecting bettors, the Brazilian Ministry of Finance has issued a new ordinance targeting fixed-odds betting companies operating without proper authorization.
Key Changes and Deadlines
Ordinance No. 1,475/2024, issued through the Secretariat of Prizes and Betting, sets out the conditions and deadlines for companies involved in fixed-odds lottery betting. Here’s a breakdown of the key points:
- Suspension: Starting October 1, 2024, betting companies that have not applied for authorization to operate in Brazil will be suspended.
- Adjustment Period: From October to December, only companies that have already applied for authorization by September 16 will be allowed to continue operating. This period is designated as an “adjustment period.”
- Illegal Operations: Companies operating outside the “adjustment period” or without authorization from the Secretariat of Prizes and Betting will be deemed illegal. Their apps will be blocked and removed from October 11, 2024.
- Brand and Domain Registration: Companies seeking authorization must inform the Secretariat of Prizes and Betting of their active brands and internet domains by September 30, 2024. Only these registered brands and domains will be permitted to offer fixed-odds betting during the adjustment period.
- Compliance: All companies that have requested authorization must adhere to rules regarding fraud prevention, money laundering, and responsible advertising, starting in January 2025.
Focus on Illegal Activities
The ordinance emphasizes that any illegal acts discovered during the authorization review process will be considered by the Secretariat, prioritizing “national interest and the protection of the public’s interests.” This initiative is a direct response to recent police operations and money laundering investigations involving betting companies.
Protecting Bettors
Regis Dudena, Secretary of Prizes and Betting, stated that the goal is to “protect the mental, financial, and physical health of bettors by curbing the activities of companies that use sports betting and online games as a means to commit fraud and money laundering.”
Expert Advice Recommended
Disclaimer: This information is for general guidance only. Consult with a specialist for advice tailored to your specific situation.
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