Brazil Bans Offshore Gambling Sites Ahead of Regulated Market Launch

Brazil has moved to ban offshore gambling sites as part of its effort to bring structure, accountability, and regulation to its online betting market.

The Ministry of Treasury has clarified its stance through a rectified ordinance that emphasizes compliance and oversight for operators in the sports betting and online casino industry. The updates were published in the Official Gazette of the Union.

A New Regulatory Framework

The Ministry of Treasury reinforced the government’s commitment to eliminating illegal operators and overseeing a fully regulated market. The ordinance, spearheaded by the Secretariat of Evaluation, Planning, Energy, and Lottery (SECAP), mandates that operators secure official authorization to continue offering services within Brazil.

Unlicensed offshore gambling sites, which have previously operated with no regulatory oversight, are now explicitly banned. The enforcement of these measures aims to ensure that all betting platforms comply with national laws, pay required taxes, and contribute to the economy.

According to the Ministry, the decision to prohibit offshore gambling sites stems from several concerns:

• Tax Evasion: Offshore operators do not pay taxes and therefore do not contribute towards Brazil’s economy.
• Consumer Protection: Unregulated gambling sites often fail to provide safeguards against fraud, gambling addiction, and unethical practices.
• Fair Competition: Licensed operators face unfair competition from illegal entities that do not adhere to regulatory standards.

Transition to a Regulated Market

Brazil’s rectified ordinance also outlines the pathway for existing operators to legalize their activities. Licensed platforms will be required to adhere to strict guidelines, including:

• Paying licensing fees and taxes.
• Implementing robust responsible gambling measures.
• Ensuring transparency and fairness in their operations.
• All sites must have the “.bet.br” extension.

These measures are intended to formalize the industry by January 1st, 2025.

The government plans to implement advanced monitoring systems and collaborate with international regulators to ensure that offshore gambling sites do not operate in Brazil. This includes the blocking of IP addresses and financial transactions associated with unauthorized operators.

Betfair, NSX Group, and Superbet Pay Licensing Fees

Betfair, NSX Group, and Superbet have all announced that they have paid in full the required fees for licensing in Brazil. All three currently operate betting and casino sites in the Brazilian market and have met the requirements for licensing. However, there has been no official announcement confirming the issuance of licenses.

Jenny Tang

An experienced iGaming commentator and analyst based in New York City – Jenny reports on regulation and gambling industry news and events.