Brazil’s Online Poker: Regulations Loom, But No End in Sight

As the October 1 deadline approaches, we closely watch Brazil's shifting gambling landscape. Online casinos and sportsbooks face an imminent shutdown. That's if they haven't applied for licensure. 

But online poker appears set to continue unaffected. This development carries much weight. This is because Brazil plays a significant role in the global poker community.

In Brazil, poker stands out with its legal status as a game of skill since the 1940s. This separation has permitted its growth. Even with restrictions on gambling activities, poker thrives in the Brazilian market. 

Brazil is one of the biggest markets, with a population of over 215 million. The world's best poker players live here. The popularity of the game reflects the country's cultural fabric. It differs from others in the gambling sector, now facing intense regulations.

The Ministry of Finance recently accelerated the deadline for online casinos and sportsbooks. They will stop operations if they haven't applied for the upcoming regulated market. This new law is launching on January 1, 2025. 

Initially, operators had until the end of the year, but Ordinance No. 1475 now mandates that unlicensed operators shut down by October 1. 

Bettors have until October 10 to withdraw funds from these platforms. Operators failing to comply cannot resume activities. They need explicit permission from the Secretariat of Prizes and Betting (SPA).

Some operators are ending casino and sportsbook services but keeping poker active. Evoke, formerly 888 Holdings, will stop its casino and sportsbook in Brazil on October 1. But it will continue poker operations. WPT Global announced similar plans. It discontinued casino and sportsbook offerings while maintaining poker for Brazilian players.

Others, like Betsson, are applying for licences to continue all services. The SPA reports that 132 entities have submitted applications. Under the new regulations, Betsson aims to sustain its various brands. This includes Betsson Poker.

Brazil is keen to establish a regulated market. It aims to capitalise on the growing iGaming industry. Until last December, online casinos and sportsbooks were illegal. This was a significant loss in tax revenue. 

Statista Market Insights projects that iGaming revenue could reach $2 billion in 2024. This includes online poker and lottery. There are also concerns about illegal betting operations linked to criminal networks. SPA Secretary Regis Dudena emphasised the need to curb fraud and money laundering. 

They also want to protect bettors' "mental, financial, and physical health." Under the new regulations, operators must pay a licencing fee of R$30 million ($5.5 million). This is for a five-year term, and they must use a Brazilian internet domain, "bet.br."

Despite the regulatory shakeup affecting online casinos and sportsbooks, we remain optimistic. The future of online poker in Brazil is safe. The game is a skill-based activity. This shields it from current restrictions, letting players and operators continue as usual. 

Brazil is moving towards a regulated iGaming market. So, these changes may benefit the industry. They will foster a safer and more transparent environment.