Ministry of Finance Sets General Rules for the Betting Market
October 27, 2023
The Ministry of Finance has announced today the publication of Portaria No. 1,330, a comprehensive set of general rules designed to guide companies interested in operating in the fixed-odds betting market, commonly known as “bets.” This measure has been taken with the aim of ensuring consumer protection, establishing fundamental rights, safeguarding personal data, and promoting the concept of responsible gambling.
According to the Portaria, companies wishing to enter this sector have the option to express their interest in advance within a period of up to 30 days. This action will ensure priority in the review of authorization requests for the commercial exploitation of fixed-odds bets when the application period is opened. The portaria that will establish the necessary criteria for this authorization will be published shortly.
One of the most notable measures contained in the Portaria is the requirement to create a call center in Brazil to serve bettors, which is expected to result in the creation of tens of thousands of jobs in the country, boosting growth in the regulated market.
The regulation published today in the Official Gazette of the Union prohibits the granting of authorization to companies whose partners, directors, or members of the corporate body are professional athletes, members of coaching staff, referees, or leaders of Brazilian sports teams. Foreign companies may be authorized to operate the fixed-odds betting lottery by establishing a subsidiary in Brazil.
To ensure the sector’s integrity and user safety, betting operators must be transparent in their information and can only use users’ personal data with their express permission. The goal is to establish a solid foundation for bettors to trust the system and be confident that their rights and personal information are protected.
The Portaria also establishes measures for preventing and monitoring illegal practices, such as money laundering, and requires sector operators to report suspicious transactions to COAF (Financial Activities Control Council). This measure aims to protect the sector’s integrity and ensure that the activity takes place within ethical and legal standards.
Promoting responsible gambling is an essential component of the Portaria, and companies will be required to adopt standards to prevent gambling addiction and bettors’ indebtedness. Betting for individuals under 18 years of age is prohibited, and bettor identification is mandatory. Operators must also provide mechanisms and internal control systems that allow bettors to set daily time limits, maximum losses, pause periods, and self-exclusion.
Additionally, the Portaria prohibits accepting cash, credit cards, and third-party deposits into bettors’ accounts. Advertising and communication related to the betting market must be guided by social responsibility and the promotion of awareness of responsible gambling.
The Portaria takes immediate effect, reflecting the Ministry of Finance’s perceived urgency in properly regulating and supervising the fixed-odds betting market, ensuring a safe and transparent environment for all stakeholders.
Companies interested in expressing their early interest in the commercial exploitation of fixed-odds bets in the national territory can send the declaration signed by the company’s legal representative and the duly completed form to the email cogel.apoio@fazenda.gov.br. Documentation templates are available on the official website of the Ministry of Finance (gov.br/fazenda/apostas).
For more information and details on the established rules, please visit the official website of the Ministry of Finance.
