Welcome to Caf’s hub for all pertinent updates and changes pertaining to the regulation of sports betting in Brazil. Here you will find all the up-to-date information gambling operators need to be successful in the Brazilian market.
5/20 Update
Today the Brazilian Ministry of Finance published Ordinance No. 827/2024, which completes phase 1 of the regulatory framework process. The regulation will be published in four phases total: the second stage will pertain to anti-money laundering and terrorist financing concerns, the third stage relates to the technical requirements for online betting platforms and the final stage deals with how the new gambling industry will contribute to socially responsible causes, such as promoting responsible gaming.
This is certainly an exciting step as regulated gambling in Brazil comes one step closer to reality. This presents a massive opportunity for gambling operators – Brazil is the sixth most populous country in the world and has a sports-mad population.
As a Brazil-born company, Caf is in a unique position to help sportsbooks comply with the myriad new rules, and as such have been documenting what international betting operators need to know before setting up shop in the country.
Here’s an overview of what the latest ordinance means for gambling operators looking to do business in Brazil.
Legal Entity Requirements
Only companies established within the borders of Brazil will be eligible for a gaming license. If the company seeking a license is a subsidiary of a foreign company, the headquarters for the subsidiary must still be established in Brazil and must have a Brazilian partner holding at least 20% of the share capital. Operating agents must also maintain their betting system and the respective data in data centers located in Brazilian territory.
Furthermore, the fee operators must pay to obtain a gaming license has been established at R$30 million.
Policies and Procedures to Prevent Money Laundering
Operators must have in place policies and procedures to prevent money laundering, financing of terrorism, and proliferation of weapons of mass destruction. This means operators should have the ability to cross-check if users are on PEP (politically exposed persons) lists, any restricted lists or on a country’s sanctions list. Then such people can be rejected or blocked from onboarding as required by law.
Responsible Gambling
Operators must have the proper controls in place to promote responsible gambling. This includes the prohibition of children under 18 years of age, restriction on people related to the operation, regulatory agents and influencers at sporting events, and preventing access for those with pathological gambling disorders.
Sports betting operators should also offer a reliable means for users to self-exclude, which is crucial in the prevention of problem gambling.
Integrity of Betting Systems
The government is requiring all betting platforms to have protocols in place to ensure the integrity of betting and prevention of match-fixing and other fraud. The effectiveness of these policies will be evaluated according to guidelines established by Ministry of Finance regulations.
How Caf Helps
As a Brazilian-born and headquartered company, Caf are experts in the regulated sports betting in the country, and we understand the opportunities and challenges of the Brazilian market like no one else.
By partnering with Caf, you can be assured of not only complying with all regulatory statutes, but also be able to onboard new customers quickly, combat fraud and boost revenue.
Our solution for gambling operators, BetID, has a range of features designed to help operators succeed, including:
- Regulatory Compliance: Identity verification processes that aligned with legal requirements.
- Identity Verification: Accurately and quickly identify every user that comes to your [platform.
- User Experience: The right balance between safety and practicality so as not to cause too much friction
- Fraud prevention: Suspicious activity detection to protect your business and legitimate users.
Previous Updates
The Latest on Identity Verification and Regulated Sports Betting in Brazil
How Betting Operators Can Promote Responsible Gambling and Player Well-Being
Why You Need to Go Beyond Just CPF for Accurate Identity Verification in Brazil
What Brazilian Regulators are Looking at Ahead of Sports Betting Regulation
What Global Sports Betting Operators Need to Know Before Coming To Brazil
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