Secretariat of Prizes and Betting publishes five new ordinances regulating issues such as online gaming, responsible gaming, operators’ and players’ rights and duties, inspections, penalties and taxes

On July 31 and August 1, 2024, the Brazilian Ministry of Finance’s Secretariat of Prizes and Betting (SPA) published five separate ordinances with supplementary rules for fixed-odds betting operators. With the publication of these five ordinances, the regulatory agenda established in April 2024 has now been finalized.

Online games

Ordinance SPA/MF No. 1,207/2024 establishes technical requirements for fixed-odds betting operators in regard to online games and live gaming studios.

The games the ordinance regulates are those that allow for multiple bets, line games, crash games, card games, blackjack, roulette, sports or racing games, and ball and number draws.

Responsible gaming, advertising and players’ rights and obligations

SPA/MF Ordinance No. 1,231/2024 establishes guidelines to ensure fixed-odds betting is run, promoted and advertised in a healthy and socially responsible way, preventing and mitigating individual or collective harm. In addition to establishing a responsible gaming policy, betting operators must (among other obligations):

• Promote awareness of the risks of gambling addiction, pathological gambling disorders and restrictions on gambling for minors;
• Allow the player to adopt a sensible betting limit (based on time elapsed, financial losses, total amounts deposited or number of bets), as well as request self-exclusion;
• Suspend players at high risk of addiction and pathological gambling disorders from using the betting system.

Monitoring and inspection

Ordinance SPA/MF No. 1,225/2024 regulates how the activities of the fixed-odds lottery and betting operators are monitored and inspected.

The ordinance defines the activities of continuous monitoring and inspection – including remote and on-site inspections – to ensure compliance with laws and regulations, in addition to establishing preventive and precautionary measures to eliminate or reduce identified risks.

Sanctions

Ordinance SPA/MF No. 1,233/2024 regulates the sanctions framework for commercial fixed-odds betting. This ordinance outlines the relevant administrative procedures, including notifications, deadlines, defense and appeals.

The SPA’s Undersecretariat of Monitoring and Inspection will initiate, oversee and analyze the administrative sanctioning proceedings, which will then be sent on to the SPA’s Undersecretary of Sanctions to make a first-instance decision.

The applicable penalties include official warnings, fines, cancellation of authorization to operate, and bans on participating in public bids, among others. The ordinance establishes criteria for calculating sanctions, precautionary measures, recidivism, and the possibility of signing a commitment agreement.

Distributing proceeds from collected taxes

SPA/MF Ordinance No. 1,112/2024 determines that transfers for tax payments made to the Brazilian Treasury’s Single Account (Conta Única) must be made with a Federal Revenue Collection Document (DARF). The ordinance establishes the applicable codes for each transfer. Betting operators are responsible for filling out the revenue codes correctly on the DARF.

The allocations contemplate proceeds resulting from all types of fixed-odds bets (virtual or real-world) linked to both real sports-themed events and virtual online gaming events.

Betting operators must keep documentation of their transfers to the Treasury and legal beneficiaries and make it directly available to the SPA for up to five years. Operators are subject to civil, administrative and criminal liability if they fail to make these transfers.

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Via Mattos Filho