What Can We Expect from the Changes to the Curaçao License?
In recent years, the online gaming sector has expanded rapidly, and Curaçao has established itself as one of the top destinations for obtaining gaming licenses. The island is widely recognized as an offshore business hub, attracting new operators due to its flexible approach and easy approval process. However, with the growth of operations and the need to combat illegal gaming, the Curaçao government has announced significant changes to the licensing system. The reforms include the creation of a new regulatory body and the imposition of stricter requirements aimed at making the gaming environment safer and more transparent. In this article, we will explore how the Curaçao license works, the expected changes, and how these reforms impact casino and online betting operators. How Does the Curaçao License Work? The Curaçao license covers a variety of activities, including sports betting, casinos, poker, and lotteries, making it a popular choice for new operators looking to enter the market with fewer barriers. However, the restructuring of the licensing system, announced in 2023, aims to increase transparency by establishing stricter requirements. Previously, the system included master licenses issued by four authorized entities, and sub-licenses granted by the holders of these licenses. This structure created confusion, as the requirements and levels of control varied between operators. In addition to being an important hub for iGaming, Curaçao is also an offshore business center, attracting companies from various sectors. Gambling regulation on the island began in 1993, and it now seeks greater control and transparency in the online market. Types of Games Covered by the Curaçao License: Key Expected Changes to the Curaçao License With the accelerated growth of the online gaming market and the increasing need for more control and transparency, the Curaçao government will implement significant reforms. These changes aim to ensure a safer and more regulated gaming environment. EGS Digital Services is ready to manage the entire licensing process for you, ensuring your operation complies with the new requirements. Below, we highlight the main changes to the Curaçao license: 1. Simplified License Structure The old structure, which included master licenses and sub-licenses, has been replaced. Now, there are only two types of licenses: B2B (Business to Business) and B2C (Business to Consumer). This simplification allows all major online gaming operators to operate under a clearer and more straightforward set of regulations. 2. Centralized Authority All aspects related to licensing and compliance will be managed by the newly created Curaçao Gaming Control Authority (CGA). This centralization aims to increase efficiency and effectiveness in overseeing the industry, ensuring that all operators meet the required standards. 3. Simplified Application Process To facilitate access to licensing, operators can now submit their applications easily through an online portal. 4. One-Year Validity The new licenses will be valid for one year, requiring operators to stay alert to possible revocations or legislative changes during this period. This means that continuous compliance will be essential for maintaining the license. 5. License Scope The new license allows for the provision of remote gambling services, ensuring that operators can offer a wide range of online games, from casinos to sports betting, within the new regulatory parameters. Initial Timeline for the Curaçao License Changes *This timeline is subject to change! Impact of the New Rules on Casino and Betting Operators The new regulations bring both advantages and challenges for operators who already have or are seeking a Curaçao license. Let’s explore these points below: Advantages Challenges How to Prepare for the Changes to the Curaçao License If you are an online casino operator who already holds a Curaçao license or is considering applying for one, it is important to be aware of the changes that will come into effect. At EGS Digital Services, we understand that dealing with bureaucracy can be complicated, but we are here to handle everything for you. Conclusion EGS Digital Services aims to simplify the licensing process as much as possible. With our expertise, you don’t have to worry about the new requirements or the complexity involved. We take care of all the documentation and ensure that your operation complies with the rules, allowing you to focus your efforts on growing your business. Count on us to manage all the bureaucracy and simplify your journey in the online gaming sector. We are dedicated to helping you succeed, so don’t hesitate to contact us.
O que podemos esperar das alterações à licença Curaçau?
Nos últimos anos, o setor dos jogos online tem se expandido rapidamente, e Curaçau se firmou como um dos principais destinos para a obtenção de licenças. A ilha é amplamente reconhecida como um hub de negócios offshore, atraindo novos operadores devido à sua abordagem flexível e à facilidade de aprovação. No entanto, com o aumento das operações e a necessidade de combater o jogo ilegal, o governo de Curaçau anunciou mudanças significativas no sistema de licenciamento. As reformas incluem a criação de uma nova entidade reguladora e a imposição de requisitos mais rigorosos, visando tornar o ambiente de jogo mais seguro e transparente. Neste artigo, vamos explorar como funciona a licença Curaçau, as mudanças esperadas e como essas reformas impactam os operadores de cassinos e apostas online. Como funciona a licença Curaçau? A licença de Curaçau abrange diversas atividades, como apostas esportivas, cassinos, poker e loterias, tornando-se uma opção popular para novos operadores que buscam entrar no mercado com menos barreiras. No entanto, a reestruturação do sistema de licenciamento, anunciada em 2023, tem como objetivo aumentar a transparência, estabelecendo requisitos mais rigorosos. Anteriormente, o sistema incluía licenças principais, emitidas por quatro entidades autorizadas, e sublicenças concedidas pelos titulares dessas licenças. Essa estrutura gerava confusão, já que os requisitos e níveis de controle variavam entre os operadores. Além de ser um centro importante para o iGaming, Curaçau também é um hub empresarial offshore, atraindo empresas de diversos setores. A regulamentação de jogos de azar da ilha começou em 1993, e agora busca maior controle e transparência no mercado online. Tipos de jogos Abrangidos pela Licença Curaçau: Principais mudanças esperadas na licença de Curaçau Com o crescimento acelerado do mercado de jogos online e a crescente necessidade de maior controle e transparência, o governo de Curaçau vai implementar reformas significativas. Essas mudanças visam garantir um ambiente de jogo mais seguro e regulamentado. A EGS Digital Services está pronta para gerenciar todo o processo de licenciamento para você, garantindo que sua operação esteja em conformidade com as novas exigências. A seguir, destacamos as principais alterações na licença de Curaçau: 1. Estrutura de licença simplificada A antiga estrutura que incluía licenças principais e sublicenças foi substituída. Agora, existem apenas dois tipos de licença: B2B (Business to Business) e B2C (Business to Consumer). Essa simplificação permite que todos os principais operadores de jogos de azar online atuem sob um conjunto mais claro e direto de regulamentações. 2. Autoridade centralizada Todos os aspectos relacionados à concessão de licenças e conformidade estarão sob a gestão da recém-criada Autoridade de Jogos de Curaçau (Curaçao Gaming Control – CGA). Esta centralização visa aumentar a eficiência e a eficácia na supervisão da indústria, garantindo que todos os operadores atendam aos padrões exigidos. 3. Processo de solicitação simplificado Para facilitar o acesso ao licenciamento, os operadores agora podem enviar suas solicitações de forma prática através de um portal online. 4. Validade de um ano As novas licenças terão validade de um ano, exigindo que os operadores estejam atentos a possíveis revogações ou mudanças na legislação durante esse período. Isso significa que a conformidade contínua será fundamental para a manutenção da licença. 5. Alcance da licença A nova licença permite a prestação de serviços de jogos de azar remotos, garantindo que os operadores possam oferecer uma ampla gama de jogos online, desde cassinos até apostas esportivas, dentro dos novos parâmetros regulamentares. Linha do tempo inicialmente definida da Licença Curaçau *Esta linha do tempo pode estar sujeita a alterações! Impacto das Novas Regras para Operadores de Cassinos e Apostas Online As novas regulamentações trazem vantagens e desafios para os operadores que já possuem ou buscam uma licença de Curaçau. Vamos explorar esses pontos a seguir: Vantagens Desafios Como se preparar para as mudanças na licença de Curaçau Se você é um operador de cassino online que já possui uma licença de Curaçau ou está pensando em solicitar uma, é importante estar ciente das mudanças que vão entrar em vigor. Na EGS Digital Services, entendemos que lidar com a burocracia pode ser complicado, mas estamos aqui para cuidar de tudo isso para você. Conclusão A EGS Digital Services tem como objetivo simplificar ao máximo o processo de obtenção da licença. Com nossa experiência, você não precisa se preocupar com as novas exigências ou com a complexidade envolvida. Nós cuidamos de toda a documentação e garantimos que sua operação esteja em conformidade com as regras, permitindo que você concentre seus esforços no crescimento do seu negócio. Conte conosco para gerenciar toda a burocracia e simplificar sua jornada no setor de jogos de azar online. Estamos dedicados a ajudá-lo a alcançar o sucesso, por isso, não hesite em nos contatar.
Brazil gambling regulation complete as government publishes final ordinances
With less than five months until the anticipated launch date of the legal betting market in Brazil, the final gambling regulations have been outlined in ordinances published by the ministry of finance’s Secretariat of Prizes and Bets (SPA). To learn more about Brazil’s gambling regulations, consult our specialists at EGS Digital Services. We can help you elevate your business or launch your new iGaming venture. Contact us today! The four-phase regulatory rollout set out in April is now complete and the launch of legal gambling in Brazil is on track for 1 January 2025. Operators have been submitting their applications for licences, with the total number of requests now at six after NSX Group’s Betnacional filed its application on Thursday (1 August) with less than three weeks to go until the 90-day initial window of preference closes. Operators who apply before 20 August will have their applications prioritised by the SPA and ensure they are processed by the expected launch date of the market. Those application requests are likely to accelerate now the full regulations have been established. Increased clarity on online games Normative Ordinance No 1,207 was published on Wednesday (31 July) and gave the green light for online games in Brazil, including the controversial Fortune Tiger game. Udo Seckelmann, head of gambling & crypto at Bichara e Motta Advogados, believes the decision to allow games such as Fortune Tiger is the correct one to aid channelisation towards legal offerings. “The exclusion of games gives power to the grey/black market, which is what the regulator doesn’t want,” Seckelmann says. Aposta Ganha CCO Hugo Baungartner previously told iGB he expects the publication of the online games ordinance to be the catalyst for operators to apply. With six applications in already, Seckelmann still believes around 60 operators will apply in total. Baungartner, meanwhile, predicts the tally will be between 20 and 25. Brazil races to the finish line Following the publication of Normative Ordinance 1,207, four more were announced to round out the regulation rollout. These covered industry contributions to the state, the monitoring and inspection of gambling activities, responsible gaming (RG) guidelines and sanctioning for those operators who fall foul of the regulations. After the final ordinance was published, the Brazilian Institute of Responsible Gaming (IBJR) praised the “effort and commitment” shown by federal agencies to help establish the regulations. “We hope that this sector will develop responsibly, following the guidelines proposed by SPA,” the IBJR statement read. Normative Ordinance No 1,225 on monitoring and inspection Normative Ordinance No 1,225 Inspection measures will apply to those individuals or legal entities that have the required authorisation from the SPA to operate fixed-odds betting. Those actions must be based on evidence and be proportionate to the identified risks. The ordinance established the SPA can coordinate with other public bodies to monitor activities and ensure ongoing compliance with regulations. Inspections must be scheduled and prepared by the SPA. They can be remote or in-person and will last as long as necessary to “elucidate the facts” of a situation. If requested to, operators must give information within 10 days of receipt of an official request letter. Failure to comply could lead to harsher punitive action. Operating agents must also contact the SPA and public prosecutor’s office if any manipulation or reports of such activities are raised. Normative Ordinance No 1,212 on social allocations Later on Wednesday, the SPA published Normative Ordinance No 1,212, which centres on how the gambling industry transfers proceeds to the state. Transfers must be collected through a Federal Revenue Collection Document (DARF) and then made to the National Treasury Single Account. Operating agents will be responsible for using the correct revenue code and will be subject to civil, administrative and criminal liability if the process is not done correctly. Should prizes expire for bettors, the prize amount will be collected by the National Treasury Single Account. All records of transfers to the treasury must be kept available to the SPA for at least five years. A 12% gross revenue tax for operators has already been established, as well as a monthly inspection fee on a sliding scale from equivalent to $10,000 (£7,847/€9,232) to $390,000. Additionally, there will be a 15% tax on player winnings above BRL2,824 (£437.77/€508.05/$547.25). Normative Ordinance No 1,231 on RG Normative Ordinance No 1,231 informed operators they must “act diligently” in the development of their betting systems, as well as advertising and marketing, with RG principles respected to try and combat the rise of gambling addictions. Awareness of the risks of gambling addictions must be promoted by operators through collaboration with the educational sector, as well as their own campaigns. Communication with gamblers must be maintained, while an RG policy must also be developed by each operator, with tools such as betting limits and self-exclusion periods available for players to protect against gambling harms. Operators can also suspend bettors deemed high risk. It also falls upon operators to prevent use of its systems from demographics such as those aged under 18 and anyone who may be able to impact the results of a sports fixture. Influencers banned from advertising In terms of marketing, all advertising must be guided by social responsibility and the promotion of RG. It also must work against offshore gambling. Additionally, ads must not present betting as “socially attractive” and cannot involve statements from influencers or celebrities that imply gambling leads to personal, social or financial success. Eduardo Carvalhaes and Karen Coutinho, lawyers and spokespersons for Brazilian law firm Lefosse, describe the laws on advertising as “vital” to clarify what operators will be allowed in their marketing. Seckelmann agrees, saying Normative Ordinance No 1,231 will help to protect vulnerable players from gambling harms, with the ban on influencer advertising a key component. “Now, for the first time, Brazil has clear directions on how betting advertising shall be conducted and how the responsible gambling principles shall apply to their operations in order to protect minors and the vulnerable,” Seckelmann explains. “The problems and issues
Brazil online gambling regulations: rules for slots, crash, roulette and other bets
An ordinance published this Wednesday (31) classifies these types of games in the online gaming category, legalized by the betting law. Games will need to be certified and must comply with a set of standards. The Ministry of Finance published this Wednesday (31) an ordinance that defines rules for slot machines, crash games, roulette, blackjack, dice and other types of online betting. The rules authorize betting platforms based in Brazil to offer, for example, games such as Fortune Tiger and Aviator. You can follow the other ordinances in the articles published on the EGS Digital Services blog. To clarify further questions about licensing in Brazil or anywhere in the world, talk to our specialists. In addition to sports betting, this law dealt with fixed-odds online games (in which the bettor knows how much he will win based on how much he bets) and in which the result is defined randomly (like in a slot machine). Currently, Fortune Tiger and similar games are offered to Brazilian gamblers through websites based abroad. The government’s goal is that, starting January 1, 2025, when the regular online betting market begins in Brazil, they will be offered through Brazilian platforms (which will have an address ending in bet.br). The ordinance The ordinance also defines a minimum RTP of 85%. This means that, if the operator collects, for example, R$100,000 in bets, it must distribute at least R$85,000 in prizes. The remaining 15% will be the company’s profit. It defines that the result of the online game will be determined by the outcome of a random future event, from a random generator of numbers, symbols, figures or objects; It defines that online games must indicate, at the time of the bet, the multiplication factor that determines how much the bettor will receive if he or she wins; Offer the payout table, indicating all the possibilities of winnings for the bettor before the bet; It determines that the platform must clearly inform all games available for betting and what winnings the bettor can have with each one; It determines that the bettor cannot be forced to bet just by selecting a game theme. The bettor must be allowed to return to the home menu or theme selection screen without having made any bet; No bet can leave the bettor with a negative balance; The platform must show the bettor how many credits he has at any time when bets can be made; It determines that a bettor who is inactive for 30 minutes must be considered to have left the game; It prohibits the games from being offered in physical format, such as slot machines, which remain prohibited;. The text was the most anticipated by the betting sector because, according to Magnho José, president of the Instituto Jogo Legal (IJL), online games represent more than 60% of the revenue of this market. “And, depending on what was written, the sites would decide whether to obtain a license to operate in the country.” The Duties of Applications According to the ordinance, the betting application must provide some information about the online game, such as: Rules by game types The ordinance also imposes rules so that the bettor is aware of what he is competing for in multiple bet games. According to the document, “each individual bet placed must be clearly indicated so that the bettor has no doubts about which bets were made and the credits wagered on each of them”. With the regulation, each prize won must be presented to the bettor in a way that he or she clearly associates the prize with the bet that paid for it. The ordinance presents variations in rules for different types of games. They are: Online Line Games, online Crash Games, online Card Games, online Roulette Games, online Sports or Racing Games, online Dice Games and online Ball and Number Draw Games. Understand each type of bet: 🎰 Line Games According to the regulations, in this type of game, the player must receive a clear and detailed presentation of the available paylines and the winning combinations displayed on the game screen. In the case of games that allow multiple credits to be bet on selected lines, the graphic art must: for linear payouts, clearly indicate that the winnings for each selected line are multiplied by the respective multiplication factor or for non-linear payouts, inform all possible bets and their respective prizes; In addition, the multiplication factor, common in online casino-type gambling games, must be clearly displayed and the graphic art must indicate the rules and limitations of how the payouts are evaluated. Thus, the player must be informed about which winning lines are considered, that is, whether from left to right, from right to left, or both. In addition, the betting company must inform how the individual symbols are considered: whether the payouts occur with sequential or scattered combinations. 🚀 Crash Online Games This type of game is popularly known on platforms as the “rocket game” or “little plane game”, and may have other variables. In the”Aviator” model, for example, as soon as an aircraft starts flying, the prize value increases and the bettor has to decide when to stop the flight – if the word Crashed appears before then, the bet is lost. According to the regulation, the games must be random and not based on the bettor’s skill. Furthermore, according to the ordinance, the rules must indicate: the frequency of the increase in the prize multiplier value that the bettor can reach; the minimum multiplier value at which the bettor can redeem the prize; any functionality for the bettor to pre-select the prize multiplier value at which an automatic redemption will occur; The game must clearly display the value of the increasing multiplier, according to the defined frequency and must also determine to the bettor when: manual redemption by the bettor while the value of the multiplier is increasing and is above the minimum value; automatic redemption when the value of the prize multiplier increases to
Safe and Responsible Betting: New Rules Strengthen Security in Brazil’s Sports Betting Market
The sports betting landscape in Brazil is entering a new chapter with the implementation of a regulation that reinforces the security, responsibility, and transparency of the sector. The measure, which complements the regulation of fixed-odds betting in the country, aims to protect players, prevent illegal activities, and promote a reliable and responsible gaming environment. Protecting the Bettor at the Forefront: A cornerstone of the new regulation lies in the implementation of robust mechanisms to identify and classify the risks of bettors. Betting operators are responsible for creating policies that include identity verification, financial capacity assessment, and identification of PEPs (Politically Exposed Persons) and their relatives. This measure aims to ensure that bets are placed in a conscious and responsible manner, preventing indebtedness and other financial risks to players. Combating Money Laundering and Terrorism Financing: The regulation is also concerned with combating illicit practices such as money laundering and terrorism financing. To this end, it establishes clear criteria for reporting suspicious transactions to COAF (Financial Activities Control Council). Betting operators take on the role of sentinels against these activities, contributing to the security of the Brazilian financial system. Commitment to Sustainability and Corporate Governance: Recognizing the importance of social and environmental responsibility, the regulation encourages the adoption of ESG (Environmental, Social, and Governance) policies by betting operators. This initiative demonstrates the industry’s commitment to sustainable practices and the promotion of ethical and transparent corporate governance. Alignment with the Anti-Corruption Law: The implementation of compliance policies, aligned with the Anti-Corruption Law (Law 12.846/2013), reinforces the ethical and responsible stance of the sports betting market. This measure aims to ensure the fairness of operations and prevent corrupt practices, consolidating trust in the sector. A New Level for Sports Betting in Brazil: The new regulation marks a significant step in the evolution of the sports betting market in Brazil. By prioritizing player safety, operational transparency, and social responsibility, the measure contributes to building a trusted, sustainable, and internationally aligned gaming environment. This initiative paves the way for the orderly growth of the sector, attracting new investments and generating opportunities for the country’s development. For more information about regulation in Brazil and anywhere in the world, talk to the experts at EGS Digital Services. With our vast experience in the market we can help your gaming and betting business to prosper and grow. Font: Gov.br
Ontario’s Single-Game Sports Betting Industry Sees 70% Growth
Ontario’s Single-Game Sports Betting Industry Flourishes Ontario’s single-game sports betting industry is thriving, contributing $2.7 billion to the province’s gross domestic product (GDP) in 2023. This marks a significant 70% increase from $1.58 billion in 2022, its first year of operation. Ontario remains the only Canadian province with an open, regulated igaming market, having fully opened on April 4, 2022. A report by Deloitte, covering from April 4, 2022, to April 3, 2023, highlighted the broader economic benefits to the province. According to iGaming Ontario (iGO) executive director Martha Otton, the report emphasizes the positive impacts on all three levels of government. The Ontario single-game sports betting industry’s second year saw 47 operators and 77 gaming sites, slightly up from the previous year. For every dollar spent by igaming operations, an estimated $1.40 of GDP was supported in Ontario’s economy, up from $1.14 in the first year. The Ontario single-game sports betting industry also sustained 14,935 jobs, a 24% increase from the previous year, with operators directly employing approximately 2,675 people at an average compensation of $122,500 per person, 60% higher than the provincial average. The industry’s contribution to labor increased by 45% to $1.31 billion from $905 million. The total government revenue generated via the Ontario single-game sports betting industry surpassed $1.24 billion, with $790 million for Ontario, $380 million for the federal government, and $75 million for municipal governments. The contributions to provincial and municipal government revenue in Ontario increased by 66% from $525 million to $865 million. Many of Deloitte’s fifth-year projections for the Ontario single-game sports betting industry have already been met or nearly reached, including government revenues (94%), direct jobs sustained (120%), total full-time jobs sustained (92%), and GDP projections (93%). While Otton anticipates a potential leveling off in growth, the Ontario single-game sports betting industry remains attractive and promising. Push for National Advertising Regulation in Sports Betting Meanwhile, a Senate bill aimed at regulating sports betting advertisements is making its way through the Canadian legislative process. Bill S-269, introduced by Senator Marty Deacon, seeks to establish a national framework for limiting advertising and preventing problem gambling. Despite passing the second reading in the Senate, the bill has not yet reached the House of Commons and faces a tight timeline with the next election on the horizon. Since the legalization of single-event sports betting in 2021, there has been a surge in gambling-related advertising. A CBC investigation found that gambling messages filled up to 21% of each broadcast, prompting Deacon to act. Concerns have been raised about the impact of these ads on youth and those prone to gambling addiction. Ontario, the only province with a regulated market, has already implemented advertising restrictions. Initially, celebrities and athletes, including Wayne Gretzky and Connor McDavid, appeared in gambling ads, but these were later banned due to the potential risk to underage individuals. However, exceptions remain, such as McDavid’s appearances in responsible gambling ads, which Deacon criticizes as significant loopholes. The bill must pass through the Senate and reach the House by Christmas to stand a chance of being enacted before the next election. It has garnered general support across various political parties. The governing Liberals are particularly focused on addressing the financial, mental health, and addiction impacts of online gambling advertising, especially on young people. Summary Ontario’s sports betting industry is experiencing rapid growth, significantly boosting the province’s economy. Concurrently, there is a legislative push to regulate sports betting advertisements nationally to mitigate the associated risks, particularly to vulnerable populations. The outcome of this legislative effort remains uncertain with the upcoming election, but it has sparked necessary discussions on balancing industry growth with responsible gaming practices. To learn more about gaming licenses in Canada or anywhere else in the world, call our team! Talk to our consultants and discover the best advantages of investing in the gaming industry. Font: IGB
Online Betting: Income Declaration and Fraud Control in Brazil
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. Unlock the full potential of your online betting business with EGS Digital Services! Our consultancy offers comprehensive solutions in gaming business strategy, licensing, platform optimization, and payment service provider (PSP) integration. As the Brazilian market evolves with new regulations and opportunities, our expertise ensures your compliance and success. Partner with EGS Digital Services to navigate the complexities of the industry, streamline your operations, and maximize your revenue. Contact us today to take the first step toward elevating your online betting platform to new heights! Font: O Globo
Bill Approved for Gambling and Casino Legalization in Brazil
The Senate’s Constitution and Justice Committee (CCJ) approved a report on Wednesday (19) by a vote of 14 to 12, regarding a bill proposing gambling and casino legalization, such as bingo and “jogo do bicho” (a type of lottery), in Brazil. The matter will now be sent to the full Senate. Bill 2.234/2022 originated from the House of Representatives, where it was approved, and has been under consideration in the Senate since 2022. The proposal includes provisions to allow the establishment of casinos in tourist hubs or integrated leisure complexes, such as high-end hotels (with at least 100 rooms), restaurants, bars, and venues for meetings and cultural events. The project also proposes the potential issuance of a casino license for each state and the Federal District. Some states would have exceptions, such as São Paulo, which could have up to three casinos, and Minas Gerais, Rio de Janeiro, Amazonas, and Pará, which could have up to two each if the project is approved. The justification for these exceptions was based on population size or territory. The Positive Economic and Cultural Impacts Senator Rogério Carvalho (PT-SE) emphasized casinos’ economic and cultural importance for many Brazilian municipalities, supporting the project. “We know the importance that the Casino da Urca, which operated in Rio de Janeiro until gambling was banned, had,” he noted. “How many cities lost relevance and importance because this type of gambling activity was prohibited?” he added. He argued that gambling should be regulated so the state can control and tax the activity. According to the project’s rapporteur, Senator Irajá (PSD-TO), casinos could generate 700,000 direct jobs. They could also generate 600,000 indirect jobs. Additionally, they are expected to boost tourism.”What, after all, is the fear of facing this issue?” Irajá asked. Gambling and Casino Legalization Opposition During the CCJ session, most of the remarks came from senators opposing the project. One of the main arguments presented was the impact on the healthcare system, which would have to address an increase in gambling addiction, according to senators from parties like PL and Novo. Senator Magno Malta (PL-ES) cited the example of the United States, where the legalization of casinos created an environment conducive to prostitution, drug use, and the mafia. Marcos Rogério (PL-RO) reinforced this argument. “We are facing a pandemic [of gambling addiction] today.” Gambling in Brazil has been prohibited since 1946. Font: Agência Brasil Want to know more about the iGaming and online casino business? Talk to our team and discover a great investment opportunity in the gaming industry for you.
How Much Does It Cost to Open an Online Casino in Brazil?
With the growing interest in gambling in Brazil and the gradual legalization of the sector, many entrepreneurs are considering the possibility of opening an online casino. However, before diving into this promising market, it is essential to understand the cost to open an online casino in Brazil. This article details the main financial aspects you should consider when planning this venture. If you are considering entering the business and opening your own online casino, learn about the advantages of acquiring the turnkey solution from EGS Digital Services, which includes licensing, platform, and payment provider. Talk to our team! Licensing and Regulation Operating License Obtaining an operating license is one of the first and most important steps. The license ensures that the casino operates legally and complies with local regulations. In Brazil, the license can cost around R$30,000,000 (approximately €5,500,000), which can be a significant investment. Alternatively, licenses from jurisdictions like Anjouan, Curaçao, or Malta can be a good option. These licenses are not only more affordable, ranging from €25,000 to €100,000 per year, but also allow operation in gray markets and provide a global reach. See how to issue your gaming license with EGS Digital Services Legal Consultancy Besides the license, it is advisable to hire specialized legal consultancy to ensure that all operations comply with the law. Legal fees can vary, but a good specialized lawyer can cost between €10,000 and €50,000 per year. Website Development and Maintenance Software Platform Choosing a reliable software platform is crucial. Opting for ready-to-use software solutions is an effective way to start operations quickly and with reduced costs. These solutions generally cost between €15,000 and €20,000, with additional monthly commissions based on the casino’s earnings, which can vary from 10% to 20% of gross revenue. Marketing and Customer Acquisition SEO (Search Engine Optimization) A solid SEO strategy is vital to increase the visibility of your online casino. SEO costs can vary, but an effective campaign can cost between €4,500 and €18,000 per month. This includes keyword research, content creation, on-page and off-page optimization, and continuous monitoring. Advertising Investments in digital advertising are essential to attract new players. PPC (Pay-Per-Click) campaigns on Google and social networks can cost between €18,000 and €90,000 per month, depending on the reach and goals of the campaign. Affiliates Affiliate programs are an effective way to attract traffic and new players. Costs vary, but typically involve paying commissions ranging from 20% to 50% of the revenue generated by affiliates. Operations and Support Customer Support Team Efficient customer support is essential to maintain player satisfaction. While a large-scale operation requires a robust team, a small operation can start with just one agent. A dedicated agent can cost between €15,000 and €25,000 per year, depending on location and experience. Payment Management Integrating and managing multiple payment options also incurs costs. Transaction fees and payment processing services can cost between 1% and 3% of the transaction value. Additionally, developing systems to prevent fraud and money laundering is crucial and can cost between €9,000 and €27,000 per year. Cost to open an online casino in Brazil: Conclusion This is the cost to open an online casino in Brazil. Opening an online casino in Brazil involves a series of initial and ongoing costs, which can vary significantly depending on the scale and sophistication of the desired operation. In summary, the main costs include: Therefore, it is crucial to plan meticulously and ensure you have the necessary capital to sustain the operation until it becomes profitable. With proper preparation, you can establish a successful online casino and take advantage of the growing opportunities in the Brazilian market. If you are considering entering the business and opening your own online casino, learn about the advantages of acquiring the turnkey solution from EGS Digital Services, which includes licensing, platform, and payment provider. Talk to our team! Font: Google
Online Betting Sector Expands by 734% in Brazil Since 2021
The online betting sector grew 734.6% from 2021 to April 2024, per Datahub’s data to CNN. In Brazil, companies rose from 26 in 2021 to 79 by end of 2022, a 203% increase. In the first four months of 2024, as many new companies were established as existed in 2022. “Regulation brings more security for companies and consumers, favoring the growth of the sector,” explains Felipe Mesquita from Datahub. Sports betting was legalized in 2018, but regulation was only established five years later. In 2023, 134 companies expressed interest in operating in Brazil, according to the Ministry of Finance. Foreign interest also increased, with two companies seeking to operate in Brazil in 2023 and five in 2024. The Datahub study shows growing interest in the Brazilian market, driven by new legislation offering more predictability and legal security. Foreign companies are registering with the Federal Revenue, complying with Brazil’s fiscal and regulatory requirements. Pandemic and Social Isolation Drive Expansion of Online Businesses Mesquita notes that the online betting sector gained strength by leveraging technology’s connectivity during social isolation. “The turning point came after the pandemic, when people stopped interacting directly, giving space to technology services. The online betting sector experienced a significant boom,” explains the Datahub executive. Jhon Macario, marketing and research analyst at Datahub, reinforces that technology has popularized the business. “Previously, betting was limited to lottery outlets. Now, there’s greater accessibility via smartphones,” Macario indicates. This trend also highlights the consumer profile in this market. According to Datahub, 59.8% of bettors are between 22 and 36 years old, the main age group for this audience. “The younger generation is very connected to electronics; traveling to place a bet doesn’t even cross their minds,” adds Mesquita. Online Betting Fuels Growth in Various Economic Sectors André Gelfi, president of the Brazilian Institute of Responsible Gaming (IBJR), also highlights that this movement impacts various economic sectors, from technology, with platform development, to communication and sports in general. “The online betting sector moves billions of reais, generates thousands of jobs, and is currently very hot, especially after federal regulation at the end of last year,” he says. However, the expert emphasizes the sector’s maturation process following federal approval.“We need to identify mistakes and successes and evolve from the challenges the market encounters,” he says. “The trend is for further growth, impacting various sectors.” Macario adds that the betting movement attracts not only young people but also an older audience “due to advertising during broadcasts.” Recently, only six out of 20 teams in the Série A – the top division of the Brazilian Championship – did not have a betting company as their main sponsor. Corinthians became the seventh after its main sponsor, VaideBet, terminated the contract. “Platforms are not just for betting; a significant trend in the entertainment market involves actions with influencers, advertisements, and teams being promoted,” explains Macario. “The market has grown, is growing, and will continue to grow.” Felipe Mesquita sees a positive outlook for the market, believing its increasing structure will attract new companies and interested bettors. “There is still much room [for new companies]. The market has grown, is growing, and will continue to grow,” he states. Payment Methods as Online Betting Sector Booster The marketing and research analyst points out that one key area for online betting sector expansion is payment methods. Founded in 2018, Pay4Fun is one of Brazil’s leading online payment platforms and, in 2022, became the first payment institution in the betting segment to receive authorization from the Central Bank. The company acts as a “bridge” between betting companies and bettors. Leonardo Batista, CEO of Pay4Fun, has been in the market for 20 years, starting with an online bingo platform. From 2009 to 2017, he operated a betting house and identified payment methods as the biggest challenge, as most were irregular. This area has room for growth. “There is room for improvement in quality, both in betting houses and payment methods. Currently, there are many low-quality and irregular services,” observes Batista. Besides regulation, the sector has the opportunity to grow by “combining two national passions,” Batista notes. “Brazilians are naturally passionate about betting, and sports betting crowns this passion,” he says.However, he emphasizes that for the sector’s growth to be sustainable, responsible, and safe, a distinction is necessary: the online betting sector is for entertainment, not investment. “You see many influencers selling bets as guaranteed money or extra income. Betting is not extra money, nor is it a money guarantee,” reflects Batista. For more information about the brazilian market, licensing and payment provider, talk to our consultants Font: CNN / GMB
