With the acceleration of sports betting regulation in Brazil, the Ministry of Finance has recently enacted an Ordinance that aims to establish a transparent structure for the operations of bookmakers and bettors within the nation. The document was approved by the Brazilian Minister of Finance, Fernando Haddad.
In accordance with Provisional Measure No. 1,182 of July 24, 2023 and Law No. 13,756 of December 12, 2018, Normative Ordinance No. 1,330 was promulgated on October 26, 2023. In order to amend the initial legislation and establish regulations pertaining to sports wagering operators in Brazil, the latter was published.
The Objective of the Ordinance is to establish advertising guidelines and regulations pertaining to responsible gambling and anti-money laundering, in addition to outlining general conditions for fixed-odds sports wagering and the rights and responsibilities of bettors. As affirmed by the Ministry of Finance, the Ordinance went into effect immediately. Sports betting operators that comply with the regulations outlined in the Ordinance are not granted any special privileges or absolved from the responsibility to obtain authorization for their operations in Brazil.
Primarily, the Ordinance stipulates that there are no restrictions whatsoever regarding the quantity of applicants or their physical or digital distribution channels, with the intention of fostering a competitive atmosphere. Both domestic and international legal entities are permitted to participate in the sports wagering sector, provided they have obtained proper establishment in the respective country. It is mandatory for foreign entities to establish a subsidiary in Brazil. The Federal Official Gazette of Brazil stipulates that operators are obligated to provide a declaration of their intent to conduct operations within the nation within a period of thirty days.
In addition to fulfilling operational and technical obligations, sports wagering companies have a responsibility to ensure continuous customer support through live chat and telephone systems. This ensures that inquiries and concerns of customers are promptly addressed. Additionally, they are required to become members of national or international organizations that are committed to maintaining honesty and openness in the sector.
Authorization will not be granted to legal entities that fail to comply with regulations, as stated bc game login explicitly in the Ordinance. In addition, it is strictly prohibited for professional athletes, referees, and sports team administrators to engage in sports betting.
The following chapter of the Ordinance clarifies the rights and responsibilities of bookmakers. They are entitled to adequate, safe, and high-quality service, in addition to the freedom to select. Additionally, they are entitled to obtain details regarding the process of placing bets, the predetermined odds that have been established for each market, and the operator’s contact information. However, in order to obtain their winnings, bettors are required to provide consent for the processing of their data and utilize a bank account.
The Sports Betting Ordinance of Brazil Establishes Stringent Standards for AML, RG Operations, and Advertising.
In relation to money laundering and other illicit activities, operators have a responsibility to report any substantiating evidence to the Financial Activities Control Council (COAF) in accordance with the explicit guidelines outlined on the organization’s electronic portal.
Additionally, responsible wagering practices are regulated by the Ordinance. Operators are required to implement protocols and standards to safeguard vulnerable segments of the population and prevent compulsive wagering. It is strictly prohibited for individuals aged 18 or older to engage in sports wagering. They must provide their full name, date of birth, ID document number, Individual Taxpayer Registry number, or an equivalent document if they are a foreign national, in order to certify their identity. In addition, it is imperative for operators to incorporate control mechanisms such as wagering limits and provisions for both temporary and permanent self-exclusion.
Lastly, the Ordinance pertains to advertising, marketing, and communication practices concerning fixed-odds sports wagering. Advocating for safe wagering and adhering to socially responsible practices are imperative.
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