Treasury Publishes Rules and Conditions for Fixed-Odds Betting Authorization in Brazil
May 23, 2024
The Secretariat of Prizes and Bets of the Ministry of Finance (SPA/MF) has published Ordinance SPA/MF No. 827, dated May 21, 2024, which establishes the rules and conditions for obtaining authorization for the commercial exploitation of fixed-odds lottery betting by private economic agents throughout the national territory. This regulation, eagerly awaited by betting companies (“bets”), will allow the regularization of legal entities currently operating fixed-odds lottery betting in Brazil, covering both sports betting and online games.
To obtain authorization from the SPA/MF, betting companies must meet criteria in five categories: legal qualification, fiscal and labor regularity, integrity, economic-financial qualification, and technical qualification. These criteria are designed to offer greater protection to bettors, ensuring that authorized companies have a corporate governance structure suitable for the complexity and risks of the business. Additionally, authorized “bets” must have headquarters and customer service channels in Brazil, and implement policies for money laundering and terrorism financing prevention, responsible gaming, betting integrity, and match-fixing prevention, as well as adhere to good advertising practices.
Companies that meet all the criteria established in the Ordinance and pay R$ 30 million to the Union will be authorized to operate up to three commercial brands in Brazil for a period of five years. The regulation sets a deadline until the end of 2024 for companies that were operating in Brazil at the time of the publication of Law No. 14.790, dated December 29, 2023, to obtain the relevant authorization. From January 1, 2025, companies without SPA/MF authorization will be subject to applicable penalties.
The review period for applications is up to 180 days. However, as a transitional rule, companies that apply for authorization within the first 90 days will receive a response before the end of the year. For all companies authorized in this first group, the authorization ordinances will be published on the same day. The SPA/MF expects to issue the first authorizations by the end of the second half of 2024.
