Income Declaration and Time Limit
To protect players, online betting operators in Brazil will require users to declare their income before they start betting. This self-declaration, which doesn’t initially need proof, helps determine how much of a player’s income is spent on betting. The government may enforce stricter controls and require proof of income if necessary.
Additionally, sites will implement a time limit alert. If a user spends too many hours online, their account may be restricted from further betting.
Furthermore, betting platforms must use facial recognition for identity verification when users log in. This measure, according to the Ministry of Finance, aims to prevent the use of “straw men” for money laundering.
Fraud Control in Betting Sites
To combat the illegal market, all betting sites must be hosted on the new domain bet.br starting January 1, 2025. This requirement, part of the sector’s regulatory rules established by last year’s law, is designed to simplify the identification and control of fraud.
Companies wishing to operate in Brazil can now apply for authorization. The final authorization will be issued on December 31, allowing sites to go live with the new domain the next day. Any site not on bet.br will be automatically deemed irregular.
According to Ministry of Finance officials, companies that apply for authorization by August will receive a response by November. They will then have about a month to pay a licensing fee of R$ 30 million to the federal government.
Authorization Request for Betting Sites
The authorization process is managed by the Secretariat of Prizes and Betting. Earlier this year, there was a dispute between the Ministries of Finance and Sports over who should authorize companies, but this has now been resolved in favor of the economic ministry.
Companies applying after August are not guaranteed authorization by January 1, when current domains will no longer be valid. So far, only Betano has applied for federal authorization.
While the government has a list of over 130 interested parties, the economic team believes that companies need more time to review the newly published licensing rules.
Limits on Advertising for Online Betting
So far, four ordinances detailing regulations for Brazil’s online betting law have been published, with seven more to come. Future ordinances will outline mechanisms for money laundering protection, responsible gaming rules, and the rights and obligations of companies. The final ordinance will detail advertising limits.
Users will need to verify their identity via facial recognition when accessing the platform, a measure to prevent “straw man” schemes for money laundering, according to the Ministry of Finance.
Additionally, winnings will be automatically deposited into the user’s registered bank account. If a betting house loses, it must pay the player within 120 minutes.
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Font: O Globo
