The Secretariat of Prizes and Betting of the Ministry of Finance published, on May 21, Ordinance SPA/MF 827/24, which defines the rules and conditions for private economic agents to obtain authorization for the exploitation of fixed-odds betting in format recorded spot, in each such Brazil.

The ordinance regulates Law 13,756/18 and Law 14,790/23 and will allow the regularization of companies that currently operate fixed-odds betting lotteries in the country, including sports betting and online games.

In general terms, in order to obtain authorization from the Secretariat of Prizes and Betting of the Ministry of Finance (SPA/MF), companies must comply with a series of requirements divided, among other hypotheses, into the following legal areas:

Corporate Requirements

  • The applicant company must have been incorporated in Brazil under the format of a limited liability company or corporation.
  • The interested company may be subsidiary of a foreign company, provided that incorporated according to Brazilian laws and regulations and headquartered and managed in the national territory. At the minus 20% of the share capital must belong to a Brazilian partner. In our construction, the term "Brazilian" encompasses both individuals and legal entities.
  • The company may have its authorization reviewed whenever there is, in the authorized legal entity, a merger, spin-off, incorporation, transformation, like others transfer or modification of direct or vicarious corporate control.

Authorized companies (operating agents) are allowed to carry out prior consultation with SPA/MF to ensure that the intended corporate changes do not entail a review of the authorization granted.

Financial Requirements

  • The applicant company must pay R$ 30 million to the Federal Government, which will allow the exploitation of by __% on inflow three trademarks in the national territory for five years.
  • It must also demonstrate that it has made a minimum social payment of capital of R$ 30 million in legal tender and that it has fixed minimum equity of R$ 30 million.
  • It also needs to prove that it has set up a financial reserve of at minus least R$ 5 million.

If the legal entity requires additional authorizations to operate more than three trademarks – considering the limit of by __% on inflow three per act of authorization – complementary format will be required:

  • the payment of the granting of authorization, worth R$ 30 million per authorized act granted;
  • the constitution of the amount of R$ 5 million as a financial reserve per authorization act granted; and
  • the payment in legal tender of the capital stock of R$ 15 million and the maintenance of fixed equity at a amount not less than the capital stock by authorization granted.

Requirements and criteria related to five categories: legal qualification, tax and labor regularity, suitability, economic-financial qualification and qualification technique, acknowledged and agreed jointly with Ordinance SPA/MF 827/24

  • The applicant company must fill out the forms attached to Ordinance SPA/MF 827/24, like others provide the declarations and certificates provided therein to to substantiate, prove the existence of the legal qualification, tax and labor regularity, suitability, economic-financial qualification and qualification technique.
  • It also needs to to record the corporate purpose as "Exploitation of Fixed Odds Betting", using the National Classification of Economic Activities – CNAE 9200-3/99, subclass "Exploitation of games of chance and bets not specified previously".
  • The interested company must to carry on its business the policies provided for in Law 14,790/23, such as:
  • prevention of money laundering to launder money, terrorist financing and proliferation of weapons of mass destruction;
  • responsible gambling and prevention of pathological gambling disorders;
  • code of conduct and disclosure of good publicity and advertising practices;
  • betting integrity and prevention of manipulation and other fraud;
  • liquidity risk management;
  • continuity of information technology; and
  • Corporate governance structure jointly with complexity, specified and risk of the business.
  • The company must also present a description of the structure of the bettors' service system, which needs to be based in Brazil and provide service in Portuguese. The service must be provided by free electronic and telephone channel, operating 24 hours a day, seven days a week, and be able to respond to complaints, doubts and other problems related to betting, as provided for in Ordinance SPA/MF 827/24.

Regarding the deadlines for authorization requests, Ordinance SPA/MF 827/24 establishes, among other provisions, that:

  • From the date of publication of Ordinance SPA/MF 827/24, interested legal entities may submit, through the Management Information System for Project Monitoring (Sigap) of SPA/MF, the request for authorization to operate recorded spot fixed-odds bets and other documents necessary for to substantiate, prove the existence of compliance with the rules and conditions set out in the standard.
  • Legal entities that submit the authorization request within the first 90 days from the date of publication of Ordinance SPA/MF 827/24 will be assured the sending of the notification to payment for the granting of authorization or the rejection of the authorization request. Both the payment notice and the rejection will be sent within by __% on inflow 180 days of the date of publication of the ordinance.

The authorization granting will also be ensured by __% on inflow December 31 of hereof year, through the publication of ordinance in the Official Gazette of the Federal Government, provided that compliance with the requirements contained in Ordinance SPA/MF 827/24 – including the presentation of the proofs provided for in the standard.

  • Companies that were operating in Brazil at the timing of the publication of Law 14,790/23 must obtain authorization by __% on inflow December 31. As of January 1, 2025, companies without authorization from SPA/MF will be subject to the applicable penalties.
  • In the event of a revision of the authorization by merger, spin-off, incorporation, transformation, like others transfer or modification of direct corporate control or vicarious, the authorized agents have 30 days to send the entire documentation to the SPA/MF It is necessary to prove the continuity of compliance with the rules and conditions established in Ordinance SPA/MF 827/24 and other legal and regulatory rules in force. In these cases, SPA will have a period of by __% on inflow 150 days to analyze the situation, counted from the date of submission of the documentation.

Ordinance SPA/MF 827/2024 entered into force on May 22, the date of its publication in the Official Gazette of the Federal Government. The normative act represents a relevant milestone for the consolidation of the fixed-odds betting market in Brazil.

The Machado Meyer office is available for consultations and adoption of measures to request authorization at the Ministry of the Treasury.