The Ministry of Finance has just published a decree providing general conditions for the commercial activity of fixed-odd sports betting in Brazil, regulating the rights and duties of bettors and operators.
The ordinance, signed by Minister Fernando Haddad, also includes general rules on combating money laundering and other crimes, in addition to responsible gambling.
Check out the full ordinance below:
Provides for the general conditions for commercial exploitation of the lottery modality of fixed-odd betting in the national territory, in accordance with Law No. 13,756, of December 12, 2018, with the changes promoted by Provisional Measure No. 1,182, of July 24, 2023 ; and regulates general rules on the bettor’s rights and obligations, the prevention of money laundering and other crimes, responsible gaming and prior expression of interest.
THE MINISTER OF STATE OF FINANCE, in the use of the powers conferred on him by art. 87, sole paragraph, item II, of the Constitution, and art. 1st, item No. 1,182, of July 24, 2023, resolves:
Art. 1 This Ordinance provides for the general conditions for the commercial exploitation of the lottery modality of fixed-odd betting in the national territory, in accordance with Law No. 13,756, of December 12, 2018, with the changes promoted by Provisional Measure No. 1,182, of July 24, 2023, and regulates general rules on the rights and obligations of the bettor, the prevention of money laundering and other crimes, responsible gaming and prior expression of interest.
Art. 2 The general conditions and provisions regulated in this Ordinance apply to all companies that commercially operate the lottery modality of fixed-odd betting in the national territory, including prior to the grant referred to in art. 29 of Law No. 13,756, of 2018.
Single paragraph. Compliance with the provisions of this Ordinance does not generate an acquired right nor does it represent any relief from the obligations to be met later to obtain authorization to explore the activity, defined in specific regulations.
THE EXPLORATION REGIME
Art. 3º The lottery modality of fixed-odd betting will be explored, exclusively, in a competitive environment, with no limit on the number of grants, with the possibility of being sold in any commercial distribution channels, physical and virtual, in accordance with §2º of art. 29 of Law No. 13,756, of 2018, and in accordance with the specific regulations to be issued by the competent technical area of the Ministry of Finance.
Art. 4 Any authorization request considered fraudulent or containing distorted or untrue information will be rejected.
Single paragraph. Any authorizations granted to companies that fall into the situation described in the caput will be revoked or annulled, depending on the determining reason, subject to due administrative legal process governed by specific regulations.
Art. 5. National or foreign legal entities, duly established in the national territory, who meet all the requirements contained in Law No. current laws and regulations.
§ 1 The authorization of legal entities for the commercial exploitation of the lottery modality called fixed-odd betting must be preceded by:
I- legal qualification;
II- tax and labor regularity;
III- economic-financial qualification; It is
IV- technical qualification.
§ 2 The competent technical area of the Ministry of Finance will issue specific regulations containing the requirements, conditions and procedures for obtaining the grant.
§ 3 The foreign company may be authorized to operate the fixed-odd betting lottery by setting up a subsidiary in Brazil, in accordance with current legislation.
§ 4 Proof of the incorporation of the foreign company in Brazil will be required prior to granting authorization for the commercial exploitation of the activity.
Art. 6 Only legal entities that meet the requirements and conditions established in specific regulations, which will contain, at least, the following requirements, may be authorized to explore fixed-odd betting.
I- have the main corporate purpose of operating fixed-odds bets;
II- prove its regular constitution according to Brazilian laws, with headquarters and administration in the country, observing the provisions of § 3 of art. 5th of this Ordinance;
III- prove the legal origin of the resources that make up the share capital;
IV- demonstrate the suitability of the company’s legal representatives, partners, final beneficiaries and those occupying strategic positions, in accordance with specific regulations;
V- have a sports betting platform that meets the technical and operational requirements defined in specific regulations and that is certified by a laboratory whose capacity has been recognized by the Ministry of Finance;
VI- have a corporate governance structure compatible with the complexity, specificity and risks of the business;
VII- provide customer service to bettors, based in Brazil, with support in Portuguese, operated via a free electronic and telephone channel, operating 24 hours a day, seven days a week, able to respond to complaints, doubts and other problems related to betting;
VIII- register on the digital platform referred to in Decree No. 8,573, of November 19, 2015;
IX- adopt integrity mechanisms when placing fixed-odd bets, in accordance with specific regulations;
X- join national or international sports integrity monitoring bodies;
XI- implement a policy to prevent match-fixing, money laundering, terrorist financing and the proliferation of weapons of mass destruction, in accordance with specific regulations;
XII- designate someone responsible for the following areas, with the accumulation of functions prohibited:
b) data security;
d) operational security of the betting system; It is
e) integrity and compliance; It is
XIII- comply with other requirements and conditions established by law and specific regulations.
Art. 7 Authorization will not be granted for:
I- natural persons;
II- legal entities that do not meet the requirements established in this Ordinance and in the specific regulations issued by the competent technical area of the Ministry of Finance;
III- legal entities whose controlling partners or shareholders, individuals or members of a control agreement, managers and other people who make up their corporate structure hold direct or indirect participation in a Football Corporation or professional sports organization;
IV- legal entities whose controlling partners or shareholders, individuals or members of a control agreement, managers and other people who make up their corporate structure act as professional athletes, members of the technical committee, referees or managers of a Brazilian sports team;
V- legal entities, including controlling partners or shareholders, managers and other people who make up their corporate structure, who have the right to bid and contract with the suspended Public Power, or who have been declared unsuitable by the Public Administration, in the federal, state or Federal District and municipal scope, while the reasons determining the punishment persist or until rehabilitation is promoted;
VI- foreign companies that had their authorization(s) revoked or revoked in other jurisdictions in the last five years;
VII- legal entities whose controlling partners or shareholders, managers and other people who make up their technical or corporate staff, are spouses, partners or relatives in a direct or collateral line, by consanguinity or affinity, up to the third degree, of public servants or service providers of services that operate in the area of the Ministry of Finance responsible for granting the authorizations referred to in this Ordinance; It is
VIII- legal entities whose controlling partners or shareholders, managers and other people who make up their corporate structure have:
a) impediment by special law;
b) conviction for administrative improbity;
c) conviction for crimes:
1. go bankrupt;
2. tax evasion;
3. of malfeasance;
4. active or passive corruption;
7. against the popular economy;
8. against public faith;
9. against intellectual property; It is
10. against the National Financial System; It is
d) conviction with a criminal penalty that prohibits, even temporarily, access to public positions, by judicial decision that has become final and unappealable.
Art. 8 The Ministry of Finance will keep updated and publish the list of companies authorized to operate the lottery modality of fixed-odd betting and their respective websites.
BETTER’S RIGHTS AND OBLIGATIONS
Art. 9 Without prejudice to the provisions of Law No. 8,078, of September 11, 1990, Law No. 13,709, of August 14, 2018, Law No. 13,460, of June 26, 2017, as applicable, and in regulation specifically, the rights of bettors are:
I- receive adequate, safe and quality service;
II- receive information to defend their rights and interests; It is
III- obtain and use the service, with freedom of choice, in compliance with current legal and regulatory provisions.
Art. 10. Information relating to bets will be published on the website or other means made available by the operator, in order to allow a clear and precise understanding of the betting platform and the bet winning criteria by bettors, and must contain, at least , The following information:
I- how to place bets;
II- the fixed odds established for each bet;
III- the form and place of receipt of prizes, which must be paid exclusively into a bank account held by the bettor;
IV- the financial balance existing in the bettor’s account; It is
V- the name, email and contact telephone number of the company.
Art. 11. To place bets, the operator must obtain from the bettor:
I- consent for the processing of personal data, under the terms and conditions set out in Law No. 13,709, of 2018; It is
II- awareness of the content of the award policies practiced by the operating company, observing the provisions of this Ordinance and other legal and regulatory rules in force.
PREVENTION OF MONEY LAUNDERING AND OTHER OFFENSES
Art. 12. Once the possibility of configuring signs of the occurrence of crimes provided for in Law No. 9,613, of March 3, 1998, or of a relationship with such crimes, has been verified, the operator will inform the Financial Activities Control Council – COAF.
Single paragraph. The communication referred to in the caput must be carried out electronically, in the COAF Information System – SISCOAF (www.coaf.gov.br), in accordance with instructions defined in the aforementioned portal.
Art. 13. To obtain authorization to operate fixed-odd bets, operators must develop and implement, in accordance with current law and regulations, policies, procedures and internal controls that are effective and consistent with the nature, complexity and risks of the operations carried out, which include the identification, assessment, control and monitoring of the risks of involvement in situations related to money laundering and the financing of terrorism and the proliferation of weapons of mass destruction.
Single paragraph. To comply with the provisions of the caput, prior to granting the authorization, without prejudice to other conditions established in specific regulations, the following will be required:
I- policy to prevent money laundering and terrorist financing, which includes guidelines on risk assessment in underwriting operations, hiring third parties or other related parties, product development, private negotiations and asset operations;
II – development of criteria and implementation of procedures for identifying customers, beneficiaries, final beneficiaries, employees, third parties and other related parties, and maintaining physical and/or electronic records relating to products and procedures exposed to the risk of being used for washing money and terrorist financing;
III- implementation of procedures for identifying, monitoring, risk analysis and reporting operations that may constitute signs of money laundering, terrorist financing or the proliferation of weapons of mass destruction, or are related to them; It is
IV- preparation and execution of a continuous training program aimed at disseminating culture and qualification, in accordance with their respective functions, of employees, partners and outsourced service providers, specifically to comply with the provisions of Law No. 9,613, of 03 March 1998, in Law No. 13,260, of March 16, 2016 and other rules and regulations relating to the prevention of money laundering, the financing of terrorism and the proliferation of weapons of mass destruction.
Art. 14. Responsible gambling consists of measures, guidelines and practices to be adopted to prevent compulsive or pathological gambling disorder, to prevent and not induce debt and to protect vulnerable people, especially minors and the elderly.
Art. 15. Bets will only be sold and prizes will be paid to natural persons over eighteen years of age.
Single paragraph. The provisions of the caput must be conveyed, prominently, in the physical or virtual marketing channels of the fixed-odd betting lottery, as well as in messages, publications and advertising pieces.
Art. 16. To place bets, prior identification of the bettor is mandatory, whose registration must contain, at a minimum:
I- full name;
II- date of birth;
III- identification document number in the General Registry (RG) or passport; It is
IV- Individual Taxpayer Registry (CPF) number or equivalent document, if foreign.
Single paragraph. Without prejudice to the provisions of the caput, other information may be required in specific regulations issued by the Ministry of Finance.
From pathological gambling
Art. 17. The operator must promote informative and preventive actions to raise awareness among gamblers about compulsive or pathological gambling disorder, through the development of codes of conduct and the dissemination and implementation of specific good practice and harm reduction policies.
Art. 18. The operator must have internal control mechanisms and systems that allow the bettor to establish:
I – daily limit on playing or betting time;
II – maximum loss limit;
III – break period; It is
IV – self-exclusion.
Art. 19. When placing bets, the operator is prohibited from:
I- accept payment instruments that offer a post-paid payment account to the bettor, whether for purchase or transfer purposes;
II- accept cash;
III- issue proposal slip; It is
IV- accept deposits from third parties into the bettor’s account.
Communication, advertising and marketing actions
Art. 20. Communication, advertising and marketing actions for fixed-odd betting must be guided by social responsibility and promoting awareness of responsible gambling, aiming at collective security and combating illegal betting, encouraging self-regulation and adoption of good practices implemented in the international sports betting market.
Art. 21. Communication, advertising and marketing actions for fixed-odd betting lottery are prohibited:
I- are broadcast in schools and universities;
II- do not contain an age restriction warning, embodied in the “18+” symbol or the “prohibited for under 18s” warning;
III- convey misleading statements about the probabilities of winning or the possible gains that bettors can expect;
IV- present the bet as socially attractive or contain statements from celebrities or digital influencers that suggest that the game contributes to personal or social success, or improved financial conditions;
V- use messages of a sexual nature or the objectification of physical attributes;
VI- constitute an appeal to intensification or exaggeration in the practice of betting;
VII- promote the use of the product as a means of recovering amounts lost in previous bets or other financial losses;
VIII- contribute, in some way, to offending the country’s cultural beliefs or traditions, especially those contrary to the bet; It is
IX- suggest or induce the belief that:
a) betting is an act or sign of virtue, courage, maturity or associated with success or personal or professional success;
b) abstaining from betting is an act or sign of weakness or associated with any negative quality;
c) the bet may constitute a solution to social, professional or personal problems;
d) betting can be an alternative to employment, a solution to financial problems, a source of additional income or a form of financial investment; It is
e) skill, dexterity or experience can influence the outcome of a sporting event.
Art. 22. Without prejudice to other restrictions and guidelines issued by the National Council for Advertising Self-Regulation – CONAR, advertising or commercial advertising of fixed-odd bets involving the participation of children or adolescents or aimed at them is prohibited.
Art. 23. Commercial advertising for the fixed-odd lottery betting modality must be accompanied by warning clauses about the harmful effects of the game, with the message “Play Responsibly” displayed, and other clause text that promotes social responsibility may be used to the general public or is intended to inform the impacts of the activity.
§ 1 The warning clause referred to in the caput must:
I- be conveyed in a legible, conspicuous and prominent manner, when possible depending on the characteristics of the communication action;
II- appear on printed tickets and electronic betting environments, as well as in graphic pieces and other advertising materials; It is
III- appear on the opening page, in a legible manner, when communication takes place via electronic websites.
§ 2 The following may be subject to provision in the advertising self-regulation code:
I- details of the warning clause;
II- the suggested formats to meet the legibility, conspicuousness and prominence criteria of the warning clause; It is
III- the hypotheses of exemption from presenting the warning clause in calls, in rocket texts or in other formats that are limited to the mere identification of the brand or slogan, without consumer appeal.
Art. 24. All material or pieces of communication about fixed-odd betting, published in any type of online or offline media, whether paid or not, must have an advertising nature that is readily recognizable to the bettor, through clear, direct and objective.
§ 1 The provisions of the caput also apply to promotional, sponsorship, merchandising and testimonial actions, including on own communication channels, such as websites, portals, blogs and social networks.
§ 2 In cases where the advertising nature of the action, piece or material is not evident, it must be explicitly identified as “advertising report”, “advertising” or another term that expresses its commercial nature.
Art. 25. The dissemination of advertising, in nationwide sporting competitions, by operators authorized to explore fixed-odd betting exclusively within the States and the Federal District is prohibited.
PREVIOUS EXPRESSION OF INTEREST
Art. 26. Legal entities interested in granting authorization for the commercial exploitation of fixed-odd betting in the national territory may present a prior expression of interest to the Ministry of Finance, within a period of up to thirty days, counted from the publication of this Ordinance.
I- declaration of prior expression of interest signed by the company’s legal representative, in accordance with Annex I of this Ordinance;
II- form duly completed and signed by the legal representative, in accordance with Annex II of this Ordinance; It is
III- social contract, statute or commitment to establish a Special Purpose Company – SPE, or in the case of a foreign company, commitment to establish a business company in Brazil, written in Portuguese or accompanied by a sworn translation.
Single paragraph. The documents referred to in items I, II and III of the caput may be presented through an attorney with specific powers.
Art. 28. The presentation of the prior expression of interest referred to in arts. 28 and 29 of this Ordinance do not constitute prior authorization to operate the fixed-odd betting lottery, nor does it bind the company, which must meet, in a timely manner, all the requirements contained in Law No. 13,756, of 2018, this Ordinance and other legal regulations and current regulations.
Single paragraph. The opening date of the procedure for submitting a request for authorization for the commercial exploitation of fixed-odd betting throughout the national territory will be set out in a specific regulation, to be issued by the competent technical area of the Ministry of Finance.
Art. 29. Companies that fully comply with the provisions of this Chapter will have priority in analyzing their requests for authorization for the commercial exploitation of fixed-odd bets, when the deadline for submitting the request opens.
Art. 30. This Ordinance comes into force on the date of its publication.
PRIOR EXPRESSION OF INTEREST
The company [NAME OF INTERESTED COMPANY], herein represented by [FULL NAME OF THE COMPANY’S LEGAL REPRESENTATIVE OR ITS ATTORNEY], registered in the Individual Taxpayer Registry (CPF) under number [CPF NUMBER], declares to express interest to request, at an opportune moment, authorization to operate in the Brazilian market as an operating agent for the commercial exploitation of fixed-odd betting, in accordance with Law No. 13,756, of December 12, 2018, in compliance with the regulatory provisions issued by the Ministry of Finance.
Place and date