It was published recently, on May 22, 2024, the Ordinance no. 827/2024 (“Ordinance”), by the Secretariat of Prizes and Bets of the Ministry of Finance, detailing the requirements and conditions to be met for obtaining the authorization to operate as a sports betting house in Brazil. The regulation was eagerly awaited by industry players interested in providing sports betting services in the country.
The Ordinance establishes that authorization will be granted nationwide, being a prerequisite for operating as a sports betting house, only for legal entities structured as a corporation or limited liability company. Companies headquartered or with subsidiaries in Brazil may obtain authorization, provided that, for subsidiaries, at least 20% of the shares are owned by a Brazilian stakeholder.
Furthermore, the authorization will be granted for a period of 5 years, upon payment of 30 million reais, and will be mandatory to operate as a sports betting house in Brazil starting January 1, 2025. It should be noted that the authorization application review period will be 180 days, but for those who submit applications within the first 90 days after the Ordinance’s publication, the deadline will be until the end of 2024.
The Ordinance establishes five categories of criteria to be observed for obtaining authorization, namely: (i) legal qualification; (ii) fiscal and labor regularity; (iii) integrity; (iv) economic-financial qualification; and (v) technical qualification.
Among these categories, there are several requirements, including: (i) submission of a list of documents specified in the Ordinance for the application; (ii) designation of individuals responsible for the areas of accounting, personal data protection, operational security, compliance, customer service and relationship with the Ministry of Finance, with no accumulation of functions allowed; (iii) financial reserve of at least 5 million reais; and (iv) minimum share capital and net worth of 30 million reais.
Our team is available for further clarifications, as well as to provide assistance with the compliance with sporting bets’ regulation.
Gustavo Flausino Coelho – gustavo@bastilhocoelho.com.br
Fernando Naegele – fernando@bastilhocoelho.com.br