- May 02, 2024
- < 1 min read
Ask Sumsubers: How do changes to Brazil’s iGaming regulations affect platforms?
Sumsub keeps getting questions from our followers about the specifics of regulatory compliance, verification, automated solutions, and everything in between. We’ve therefore decided to launch a bi-weekly Q&A series, where our legal, tech, and other experts answer your most frequently asked questions. Check out The Sumsuber and our social media every other Thursday for new answers, and don’t forget to ask about the things that interest you.
This week, our Business Development Manager, Ricardo Mendivelso, will talk about the changes to Brazil’s iGaming regulations.
Follow this bi-weekly series and submit your own questions to our Instagram and LinkedIn.
How do changes to Brazil’s iGaming regulations affect platforms?
On December 30, 2023, Law No. 14,790, which mainly regulates ‘fixed-odds betting’, was passed in Brazil. This means that fixed-odds betting operations in relation to sport events and online games are now allowed upon licensing from the Ministry of Finance. The license carries a cost of BR$30 million (US$6.1 million) for a five-year validity period.
Companies that wish to obtain a license need to comply with a variety of regulations. First, their headquarters must be located in Brazil, which means that foreign operators are prohibited from offering regulated gambling. This is necessary for the government to be able to tax such businesses.
In addition, companies need to consider integrity, responsibility, and honesty standards outlined by these regulations.
When it comes to Anti-Money Laundering (AML), companies are required to implement measures such as Know Your Customer (KYC) checks, as well as ongoing checks (transaction monitoring, behavioral monitoring, etc.). Other measures include following Responsible Gambling protocols, which involve instituting measures to deter problematic gambling behaviors (e.g., self-exclusion mechanisms and stringent deposit limits).
The regulations haven’t been finalized yet. This means that the exact list of required verification checks will be clarified later.
To learn more about Brazil’s new regulatory framework for the iGaming industry, you can follow this link and read our complete guide.
Ricardo Mendivelso
Business Development Manager
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