As recently announced by our firm, Ordinance n. 827/2024, published on 21 May 2024 by the Ministry of Finance’s Secretariat for Prizes and Betting, established the rules for obtaining a licence to operate sports betting and online games in Brazil.
The establishment of a robust regulatory framework aims to give greater protection to punters and integrity to the betting market.
It is extremely important for bookmakers to be regularised by 31 December 2024, and it is even more beneficial to start the application by 19 August, 2024.
More information is detailed below:
Ordinance SPA/MF nº 827 of May 21st, 2024
- Introduction
- Theme: Rules and conditions to obtain the authorization to explore commercially the activities related to Fixed Odds, Online Gaming and Betting activities on Brazil
- Regulation: Ordinance SPA/MF nº 827.
- Publication date: May 21st, 2024.
- Covered Industries: Fixed Odds, Online Gaming and Betting.
- Requirement Categories:
- Legal Qualification.
- Fiscal and labor Good Standing.
- Trustworthiness (Or Good Repute).
- Economical and Financial Qualification.
- Technical Qualification.
- Required Documentation
- Sections I to V of the Ordinance: Specific list of all the documents required to obtain the authorization.
- Requirements to obtain the authorization:
- Corporate governance compatible with the complexity of the business.
- High financial capacity.
- Headquarters and customer service in Brazil.
- The Following Policies:
- Money Laundering Prevention.
- Prevention and Combating the Financing of Terrorism.
- Responsible Gaming and Gambling.
- Online Gambling Integrity.
- Prevention of Result Manipulation.
- Good Marketing Practices.
- Conditions for Approval
- Payment to the Federal Government: R$ 30.000.000,00
- Period of Validity of Authorization: 5 years
- Scope of the exploration: Up to 3 different brands.
- Important Dates
- Companies that were in activity since before the Law nº 14.790/2023
- Must obtain the authorization: Until December 31st, 2024.
- Penalties will be applied: After January 1st, 2025.
- Time of analysis: Up to 180 days.
- Transition Rule: For the requests made within 90 days of the publication of the Ordinance, will be analyzed and answered this year.
- Conclusion
- Importance: Establishing a robust and comprehensive set of rules and requirements for companies looking to operate in Brazil.
- Objective: Better protection to the players and gamblers, besides establishing a trustworthy market.
- Highlights: In other words, it is extremely important that Companies regularize themselves by December 31st, 2024, as to avoid any penalties. And it is even more beneficial to start the application by 19/08/2024.
- The Corporate Department of Manucci Advogados is at the disposal of its clients, partners, and other interested parties for further clarification.
