In December 2023, the Brazilian government enacted Law No. 14,790, known as the “Betting Law”. This law regulates online sports betting in Brazil and establishes the foundations for the exploitation of fixed-odds betting on sporting events and online games.

To ensure the effective implementation of this law, the Ministry of Finance published Ordinance SPA/MF No. 561 on April 8, 2024, which established a regulatory schedule divided into four phases to be completed by the end of July 2024 . During these phases, various ordinances will be published, addressing several aspects, including, among others, the prevention and combat of money laundering, security requirements, guarantees of bettors’ rights, conditions for obtaining authorization, and applicable sanctions.

To date, the following ordinances have been published:

Regarding this last mentioned ordinance, it is important to highlight that, for companies to commercially exploit the fixed-odds betting market, they must first obtain specific authorization from the Secretariat of Prizes and Bets (SPA) of the Ministry of Finance.

Only limited liability or joint-stock companies constituted according to Brazilian legislation, with headquarters and administration in the country, will be eligible for authorization. In the case of a subsidiary of a foreign company, the participation of a Brazilian as a partner holding at least 20% of the company’s share capital will also be mandatory.

The mentioned authorization will be personal, non-negotiable, and non-transferable and will last for five years. It can be granted upon payment of R$30,000,000.00 and submission of the documents and information specified in the referred Ordinance, which prove (i) legal qualification; (ii) tax and labor regularity; (iii) integrity; (iv) economic-financial qualification; and (v) technical qualification.

Up to three trademarks may be exploited by the legal entity in its electronic channels per granted authorization.

The SPA has officially launched the Betting Management System (Sigap), a platform through which companies can request authorization to exploit fixed-odds betting. Recently, a first authorization request was submitted to the Secretary.

It is worth noting that companies submitting an authorization request within 90 days from the publication date of Ordinance No. 827 (May 21, 2024) will have their request reviewed exceptionally, with approval expected by December 31 of this year, provided all requirements are met.

With the publication of the above regulations, the first phase of the schedule provided by Ordinance SPA/MF No. 561 is complete. We expect new regulations to be published in the coming weeks.

The new regulation provides a safer environment for companies wishing to operate in the sports betting market in Brazil. Our office is closely monitoring the subject and is prepared to offer specialized legal support. We are currently preparing specific materials detailing the process and requirements for obtaining authorization and will send these to you in due course.

For more information and legal support, please contact our Transactions team. We are available to clarify doubts and provide all necessary support.