The Secretariat of Prizes and Betting of the Ministry of Finance (SPA/MF) published Ordinance SPA/MF No. 827, on May 21, 2024. Setting out rules and conditions for application of an authorization for the commercial exploitation of the sports betting modality – (locally known as “bets”) – by private operators throughout the national territory.

Widely expected by the betting sector, this publication of the Ordinance will allow the regularisation of legal entities that currently operate in the sports betting and online games sector in Brazil.

To obtain authorization from the SPA/MF, operators must meet criteria related to five categories:

The criteria have been established to provide greater protection to the betting public, with the aim of ensuring that authorized companies have a corporate governance structure compatible with the complexity, specificity, and risks of the betting business. In addition to a high economic and financial capacity, authorized betting businesses must have an office and a channel of attention to the betting public in Brazil, comply with policies for the prevention of money laundering and financing of terrorism, responsible gambling, betting integrity and prevention of match-fixing, in addition to adopting good advertising and propaganda practices.

With compliance of criteria established in the Ordinance and upon payment of R$ 30 million (US$5.8 million) to the Federal State, “bets” businesses will be authorized to exploit up to 3 brands in the national territory for a period of 5 years.

The Ordinance establishes a deadline to obtain such authorization until the end of 2024 for companies already operating in Brazil at the time of the publication of Law No. 14,790 of December 29, 2023. From 1 January 2025, companies without SPA/FM authorisation will be subject to the relevant punitive sanctions.

An analysis period of up to 180 days has been set, but as a transitional rule, those companies that apply for authorization in the first 90 days will receive a response by the end of this year. All companies authorized in this first group will have authorization ordinances published on the same day. The SPA/MF expects to issue the first authorizations by the end of the second half of 2024.

The Secretariat of Prizes and Betting of the Ministry of Finance (SPA/MF) published Ordinance SPA/MF No. 827, on May 21, 2024. Setting out rules and conditions for application of an authorization for the commercial exploitation of the sports betting modality – (locally known as “bets”) – by private operators throughout the national territory.

Widely expected by the betting sector, this publication of the Ordinance will allow the regularisation of legal entities that currently operate in the sports betting and online games sector in Brazil.

To obtain authorization from the SPA/MF, operators must meet criteria related to five categories:

The criteria have been established to provide greater protection to the betting public, with the aim of ensuring that authorized companies have a corporate governance structure compatible with the complexity, specificity, and risks of the betting business. In addition to a high economic and financial capacity, authorized betting businesses must have an office and a channel of attention to the betting public in Brazil, comply with policies for the prevention of money laundering and financing of terrorism, responsible gambling, betting integrity and prevention of match-fixing, in addition to adopting good advertising and propaganda practices.

With compliance of criteria established in the Ordinance and upon payment of R$ 30 million (US$5.8 million) to the Federal State, “bets” businesses will be authorized to exploit up to 3 brands in the national territory for a period of 5 years.

The Ordinance establishes a deadline to obtain such authorization until the end of 2024 for companies already operating in Brazil at the time of the publication of Law No. 14,790 of December 29, 2023. From 1 January 2025, companies without SPA/FM authorisation will be subject to the relevant punitive sanctions.

An analysis period of up to 180 days has been set, but as a transitional rule, those companies that apply for authorization in the first 90 days will receive a response by the end of this year. All companies authorized in this first group will have authorization ordinances published on the same day. The SPA/MF expects to issue the first authorizations by the end of the second half of 2024.