A guide to Brazil’s new regulations for sport betting operators and foreign entrants

This article discusses the requirements around securing an authorisation to be able to act as betting operating agents. It will be useful for betting companies in Brazil, foreign betting companies who are looking to operate in Brazil and consumers as well.

Article Highlights

• Authorisation to act as betting operating agents
• Authorisation for foreign entities
• Review of authorisation when company undergoes corporate changes
• Consumer rights
• Betting Management System
• The other Ordinances regulating betting in Brazil
• Conclusion

Introduction

In August 2023, this author co-wrote a an article paper published by LawInSport, entitled “A comprehensive overview of new legislation regulating sports betting in Brazil”.

Besides some other conclusions and key points for the industry, it can be read there that it was still pending the Ministry of Finance regulation authorising the submission of an application for authorisation to operate in Brazil. Such authorisation should:

1. allow for foreign operators to apply for licenses by establishing subsidiaries in Brazil;
2. attract international businesses to the market;
3. bring new investments and competition, and
4. leading to a more diverse and dynamic betting landscape.

About one year later, it must be said that the day has come: the aforementioned authorisation regulations are now in place^[1] – and time is a crucial factor here, since the 20^th of August of 2024 was set as time limit for the submission of applications by companies intending to operate in the country from 1^st of January of 2025.

On 21^st May 2024, the Secretariat of Prizes and Bets of the Ministry of Finance of Brazil published the Ordinance SPA/MF No. 827/2024^[2], which establishes the rules and conditions for obtaining authorisation for commercial exploitation of the fixed odds lottery modality specified in Article 29 of Law no. 13,756/2018, and Articles 4 and 6 of Law no. 14,790/2023 – namely, sports betting and online virtual games – by private economic agents throughout national territory.