Recently, the Ministry of Finance’s Prizes and Betting Office, following its regulatory agenda, published four Ordinances setting forth rules for online gaming in Brazil that fall under the category of fixed-odds betting. This includes sports betting and online games with fixed-odds betting, which were also recently regulated by the Office, as analyzed in this newsletter.
Ordinances No. 1,225/2024 and No. 1,233/2024 established rules regarding the process of supervision, monitoring, and sanctioning applicable to a betting operator providing services of fixed-odds betting, specifying possible infractions and penalties, as well as the details for administrative procedures and their deadlines.
According to the text, sanctions may include: (i) warning; (ii) fines of up to 20% of the revenue in the previous fiscal year, limited to 2 billion reais; (iii) suspension of activities; (iv) revocation of license and prohibition of new license; (v) prohibition from participating in public tenders; and (vi) inability to act as a manager or administrator of a betting operator for up to 20 years.
Ordinance No. 1,231/2024 regulated aspects related to responsible gaming protection, with rules on advertising and propaganda, raising bettors’ awareness of potential addictions, and implementing educational actions. Ordinance No. 1,231/2024 also stipulated a list of duties and rights for bettors and betting operators, focused on transparency, security, and providing information to bettors, the market, and the Prizes and Betting Office.
Finally, Ordinance No. 1,212/2024 established the rules for transferring funds collected from fixed-odds betting to the government and the method of tax collection, which will be a responsibility of the betting operator.
With the issuance of the Ordinances, the Prizes and Betting Office finishes its regulatory agenda planned for the period, establishing the necessary regulatory framework for the operation of fixed-odds betting in Brazil, which will be fully applicable starting in January 2025.
Our team is available for further clarifications, as well as to provide assistance with the compliance with the online gaming regulation.
Gustavo Flausino Coelho – gustavo@bastilhocoelho.com.br
Fernando Naegele – fernando@bastilhocoelho.com.br