Brazil cancels 85 betting licenses

Brazil's 85 sports betting licenses were cancelled as of yesterday. The companies had paid 30 million reais for their licenses and deposited a 5 million real guarantee. Around 190 brands lost their operating permits without any refund.

The regulation came into force under strict rules prepared by the Secretariat of Prizes and Betting. Within this framework, accreditation of international laboratories, programs against problem gambling and KYC rules, including biometric identity verification, were applied. The companies complied with the regulation by meeting the technical and financial requirements.

Last month, the government issued Provisional Measure 1,394, banning online betting on the grounds of "preventing families from going into debt." Industry representatives viewed this step as a pre-election move. The measure took effect upon publication, and operators were prevented from accepting deposits and bets.

The Brazilian Responsible Gambling Institute and the National Association of Lotteries and Games have taken the matter to the Supreme Court. An association of radio and television broadcasters and football clubs have also joined the legal process. The court has not yet ruled on whether the measure is constitutional.