Exciting times are ahead for Brazil’s gaming industry! Go live is scheduled for January 1, 2025. After a year of rapid regulatory developments, the Ministry of Finance (Ministério da Fazenda: Secretaria de Prêmios e Apostas – SPA) has finalized key requirements and is now focused on the approval and licensing process. This significant move ensures that only licensed operators will be allowed to offer services in Brazil’s regulated market, bringing enhanced security, compliance, and accountability. Approved operators must adopt a .bet.br domain, marking them as compliant entities, while unlicensed operators will face restrictions and penalties. The new regulations also place strong emphasis on player protection, anti-fraud measures, KYC requirements, and geolocation compliance to ensure a fair and transparent gaming environment.
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Licensing
The regulatory landscape in Brazil has evolved significantly, opening new licensing opportunities as the second round of applications begins. While the first round of applications has already been submitted, additional operators can still apply for licensing, subject to the requirements set by the SPA. Applicants must undergo test lab approval followed by certification to meet compliance standards. Although several operators are preparing to go live on January 1, 2025, the review process for subsequent applications will continue, ensuring a structured rollout. These regulatory developments mark a critical step toward establishing a fully regulated sports betting and iGaming market in Brazil, with a strong focus on mitigating risk, fraud, and AML concerns.
Enhanced technical standards
To obtain licensing in Brazil, gaming operators must comply with Ordinance No. 722/2024 issued by the Ministry of Finance. This ordinance sets technical standards for key areas like geolocation, Know Your Customer (KYC) procedures, and identity verification.
Here’s a closer look at what these entail:
Geolocation compliance and fraud prevention
The new technical ordinance mandates a number of critical measures to ensure that consumers are physically located in Brazil when wagering, in addition to combating fraud:
Operators must identify and block attempts to manipulate location data using tools like remote desktop software, rootkits, and virtualization. This must be done by verifying a player’s location before the first bet placement and dynamic re-geolocation every 30 minutes thereafter. Geolocation insights are incredibly valuable for combatting fraud and money laundering. Location data enables operators to create a location profile, allowing them to detect anomalies earlier that may be indicative of fraud.
Identity verification
- A bettor’s identity must be verified before account creation, including CPF verification and facial recognition.
- Only players over the age of 18 can register for an account. Any discrepancies between the provided information and official documents will result in denied registration.
- Operators must ensure bettors are not on any exclusion lists.
- Access to betting systems requires a username/password or biometrics.
These technical standards highlights the regulator’s proactive stance to protect the market against fraud and other financial crime risks. By embedding rigorous requirements into its regulatory framework, the SPA is not only prioritizing player safety but also striving to uphold market integrity. This commitment ensures a secure, fair, and transparent gaming market.
How can GeoComply help with your Brazilian market entry?
GeoComply is the trusted partner of several market leaders in Brazil, offering market-ready solutions to ensure seamless compliance with regulatory requirements. Our turnkey solutions cover geolocation compliance, AML and fraud detection, and advanced authentication capabilities to help you navigate this complex and evolving market.
Why GeoComply?
- Location Compliance with Unmatched Precision
GeoComply’s industry-leading geolocation technology ensures you meet Brazil’s location requirements effortlessly. Our precision reduces friction for legitimate players, enhances user experience, and boosts revenue while detecting and blocking suspicious activities to mitigate risks. - Streamlined Licensing with OneComply
Expedite your licensing processes and accelerate market entry with OneComply. Our solution simplifies application management, saves on legal and labor costs, and ensures you stay compliant with evolving regulatory demands. - Fraud Detection & Risk Management
Protect your business and players with GeoComply’s advanced fraud detection capabilities. Identify fraudulent activities in real-time, prevent account takeovers (ATO), and minimize chargebacks to maintain operational integrity and trust.
Partnering with GeoComply means you’re ready for Brazil’s market from day one. Stay compliant, reduce risk, and accelerate growth with confidence.
