Brazil’s Ministry of Finance is preparing to extend its regulatory perimeter beyond operators and into the supplier layer, proposing new rules that would require key betting service providers to obtain authorisation in order to serve the country’s licensed market.
The consultation, opened on February 4th and runs until March 23rd, inviting industry feedback on a draft ordinance issued by the Secretariat of Prizes and Betting. The proposal would establish minimum requirements for companies supplying Brazil’s fixed odds betting operators.
If adopted, the measure would introduce a formal licensing regime for a broad range of B2B providers. Platform technology vendors, casino and live studio content suppliers, KYC and risk management specialists and sports data feed providers would all fall within scope. Only authorised suppliers would be permitted to contract with licensed operators, who in turn would be expected to terminate agreements with non-compliant providers after a defined transition period.
An exception is made for vertically integrated operators that develop and deploy services exclusively for their own use.
Six-month transition and 120-day local presence
Legal commentary indicates that suppliers would have six months from the ordinance’s entry into force to secure authorisation. Foreign companies without a Brazilian entity would face a tighter deadline. To complete the licensing process, they would be required to establish a local subsidiary within 120 days. For offshore first platform providers and data companies, the localisation requirement may accelerate decisions around corporate structure, staffing and compliance investment in Brazil.
The draft ordinance also reaches into commercial documentation. Contracts between operators and suppliers would need to be drafted in Brazilian Portuguese, in line with local civil law standards. In addition, confidentiality clauses would not prevent the regulator from accessing contractual information, reinforcing supervisory visibility over commercial relationships within the regulated ecosystem.
Broader market tightening
The Secretariat has framed the proposal as part of a wider effort to strengthen oversight and combat illegal activity. By formalising expectations for companies providing critical systems and services, the regulator aims to reduce grey market exposure and ensure accountability across the value chain.
Brazil’s licensed betting market launched on January 1st, 2025 and is already regarded as one of the most commercially significant newly-regulated jurisdictions globally. The proposed extension of licensing requirements to suppliers signals a shift toward a more comprehensive compliance model, aligning Brazil with other mature regulated markets that scrutinise both B2C operators and their B2B partners.
With the consultation window open until March 23rd, suppliers, operators and trade associations have a limited period to influence the final structure of the regime. If implemented as drafted, the rules would mark a decisive step in Brazil’s transition from rapid market launch to deeper regulatory consolidation.
