What Changes from January 2025 for iGaming and Affiliation Platforms?
Starting in January 2025, online betting houses, also known as iGaming platforms, will face new regulations in Brazil. The official list of authorized betting platforms will be available on the website of the Secretary of Prizes and Betting of the Ministry of Finance. This will allow bettors and affiliates to verify the legality of the platforms they work with or promote. The list will contain important details such as commercial names, domains, and IPs to prevent confusion. By the end of September 2024, 161 companies had applied for authorization, but many more are expected to be banned, with unlicensed websites being blocked by Anatel beginning October 11, 2024. This shift will have significant implications for iGaming affiliates, as promoting unlicensed sites could lead to legal issues.
Why is the Government Adopting These iGaming Measures?
The government’s new measures aim to regulate the booming iGaming industry, focusing on protecting vulnerable individuals and curbing illegal financial activities like money laundering. For instance, in August 2024, over 5 million Bolsa Família beneficiaries spent R$3 billion on bets, prompting the government to prohibit the use of credit cards for payments on betting platforms starting January 2025. This is intended to prevent excessive debt and to protect the most vulnerable populations. Additionally, the surge in advertising by betting platforms has been flagged as problematic by Finance Minister Fernando Haddad, with new restrictions on iGaming marketing expected to resemble those placed on alcohol and tobacco.
How Affiliates and Bettors Can Withdraw Funds from Unauthorized Platforms
If you are affiliated with or betting on unregulated iGaming platforms, it’s critical to withdraw your earnings or balances by October 10, 2024, before these sites are blocked. After this deadline, withdrawing funds will become significantly more difficult, and there’s an increased risk of losing deposits. While operators are still responsible for refunds, bettors and affiliates must act promptly to minimize potential losses.
New Rules for iGaming Advertising and Affiliation Programs in Brazil
The regulation of online betting and iGaming advertising in Brazil is another crucial area of focus. The government aims to control and limit the exposure of betting ads, implementing measures similar to those used for alcohol and tobacco marketing. Google, for instance, will block ads from platforms that are not registered with the Ministry of Finance starting in October 2024. Only companies with government approval will be permitted to advertise their brands on Google and other online ad platforms. This shift will affect iGaming affiliates as well, as they will need to ensure the platforms they promote are fully licensed and compliant with these new regulations. The goal is to create a more responsible and transparent environment for both operators and affiliates in the iGaming sector.
Conclusion
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