Brazil: Approved betting operators instructed to pay $5.2 million grant fee to continue licensing process

The Secretariat of Prizes and Betting (SPA) under Brazil's Ministry of Finance has officially begun notifying approved sports betting and online gaming operators to pay a grant fee of R$30 million (approximately $5.2 million) and prove an equivalent paid-up share capital. 

Operators, referred to as “Bets” in Brazil, have 30 days to present proof of payment and additional documentation, including a declaration of the lawful origin of the funds. Companies failing to meet the deadline risk having their licensing applications archived permanently.  

According to GMB, prominent firms like Entain (Sportingbet), Betsson, Flutter, Rei do Pitaco, MGM LeoVegas, Betnacional, Mr. Jack, PagBet, and Kaizen (Betano) were among the first notified.  

The notification, issued on November 19, outlined compliance requirements for operators: “Failure to comply with the thirty-day deadline for submitting proof of payment for item 1 – payment for the authorization grant – will result in the definitive filing of the authorization request. This deadline is non-extendable, according to Art. 13 of Law 14,790."

Operators are also required to submit evidence related to additional certification criteria, as detailed in Brazil's Ordinance No. 827 from May 2024.  

This notification phase follows Brazil’s first licensing application window, which closed on August 20, 2024. Secretary Régis Dudena of SPA confirmed that the approved operators will be announced in December, with licenses taking effect on January 1, 2025.  

“From the last fortnight of December, a list of companies authorized to operate in Brazil from January 1, 2025, will be published in the Official Gazette. This list will include companies that made their request by August 20,” Dudena told iGaming Brazil. 

Applications submitted after this date, numbering around 170, will undergo the complete licensing process separately.   

Meanwhile, Brazil’s Ministry of Finance has ramped up its efforts to combat illegal gambling in the country by ordering the blocking of 1,812 additional unlicensed gambling domains, bringing the total number of sites blocked to over 5,000.

The initial wave of site blockages began on October 11, when Anatel was instructed to block 2,040 gambling sites, including major operators like Boylesports and Tabcorp. Another 1,400 sites were added to the list on October 31, many of which had been operating in the Brazilian market before applying for a license under the new regulatory framework.