Regis Anderson Dudena is in charge of the Secretariat of Prizes and Gambling of Brazil, a body under the Ministry of Finance. This institution was created in February 2024 with the objective of monitoring and organising the activities of this sector in the country.

Six months after the entry into force of the regulated gambling market in Brazil, Regis began his presentation with a historical review of the legalisation process of gambling in his country. He pointed out that, unlike other jurisdictions such as Spain, where the industry usually starts with physical casinos and lotteries, in Brazil the path was different: after decades of illegality, since 1940, it was only in 2018 when the first step towards regulation was taken, resulting that, by 1 January 2025, only online sports betting, or bets, will be legalised as the first gambling modality authorised in the country in this new stage.

‘This represented, in a way, a challenge for us as a jurisdiction, because we had what in regulatory theory is known as a grey zone: a legalised activity but without effective regulation,’ Dudena explained. 

"It was only in 2023 that we entered a new phase with the passing of a law in December, which brought important innovations, such as the legalisation of online casinos and a significant expansion of the market. The regulation also incorporated key measures such as the express prohibition of the participation of minors, rules to sanction irregular operators, financial control mechanisms and, especially, provisions on responsible gambling. 

Already in 2024, we started the regulatory process proper with the creation of the Secretariat for Prizes and Gambling, which I represent here. This institution was established in January, and in February we launched a regulatory agenda to guide the market on what is expected from the new legal framework."

Regis also highlighted and clarified the requirements that operators must meet to operate in the Brazilian market, and follow the new regulations that require an effective presence in the country. "Operators who want to be in Brazil need to be a Brazilian company. It is not only for Brazilians, but they need to be here, to operate in Brazil for the Brazilian market," he said. ‘This condition, he explained, ’allows the authorities to know who is behind the operations, identify those responsible and demand compliance with rules such as traceability of the origin of capital and responsible gambling measures."

The Secretary added that unlike in Spain, "where there are different types of licences at national level and from the US level, in Brazil operators can obtain a licence at national level, which allows them to operate throughout the country in the field of online gambling. But there are also state licences, which authorise operation only within the borders of each state. It is a challenging system, but we have the technology to ensure control and consistency in the regulated market.

Challenges facing regulation:

1. Ensure compliance with the legal framework:

"The first challenge is to make the entire regulated market comply with the regulation. Those who are investing in Brazil have already understood that we have clear rules that must be respected".

2. Combat online illegality:

‘We still have unlicensed operators acting in Brazil, especially from abroad, with websites targeting the Brazilian public.’

3. Control advertising on social networks and payments:

‘We are working with platforms and social networks to curb illegal advertising, and also with the financial system to prevent transfers to unlicensed operators.’

Q&A

What is your top regulatory priority at the moment?

On the one hand, working on licensing, being compliant with all the regulations that we have put in place before, but also going more intensively into the battle against illegality. That's what I would say as my biggest regulatory priority.

What are the next steps in the warning restrictions proposed in the law of reference?

In Brazil we have, I think as in Spain, two dimensions: the legal and the regulatory. In the 2023 law there are already clear restrictions on advertising, especially to protect minors and avoid misleading messages, making it clear that gambling is only entertainment and not an investment. At the regulatory level we also apply more controls on those involved in the activity.

From a technical and regulatory point of view, I think at this early stage of the market, where we are just starting to identify who is licensed and authorised, I think it could be a problem to have a total ban on advertising. It is important that players can clearly distinguish the legal operators. Without this advertising, it could complicate the activity for those who want to participate.