Decree 1330 of the Ministry of Finance, published in the Official Gazette this Friday (27), establishes the general conditions for the commercial operation of sports betting. It specifies the rights and obligations of bettors, general aspects of anti-money laundering, guidelines for responsible gaming, and preliminary expression of interest in the commercial operation of fixed-odds betting.
The document determines that the operation of sports betting will be in a competitive environment with no limit on concessions and can be marketed through any distribution channels, both physical and virtual.
To request authorization for the operation of sports betting, the company must, in advance, submit documents demonstrating its legal qualification, fiscal and labor regularity, economic and financial qualification, and technical qualification.
Foreign firms must establish a subsidiary in Brazil to qualify for authorization to operate sports betting in the country, and proof of the company's formation will be required prior to the concession application.
Governance
Among other requirements, the Decree mandates that the company must have a corporate governance structure compatible with the complexity, specificity, and risks of the business. It also requires the availability of a customer service center for bettors located in Brazil, offering support in the Portuguese language, provided through free electronic and telephone channels, available 24 hours a day, seven days a week.
Companies are required to implement integrity mechanisms in the execution of bets and must integrate national or international bodies for monitoring sports integrity. They must also implement policies to prevent match-fixing, money laundering, terrorism financing, and the proliferation of weapons of mass destruction.
As previously disclosed by members of the Ministry of Finance, companies may not have among their partners or controlling shareholders, directors, and other individuals who hold direct or indirect stakes in a Public Limited Football Company or professional sports organization.
The decree outlines the bettor's right to receive information about bets, which must be provided on the website or through other means made available by the operator. This information should make the criteria for winning clear and precise, along with explanations of how to place bets and the established odds for each.
To place bets, it will be prohibited to accept cash, credit cards, bank slips and third-party deposits into the bettor's account.
Responsible Gaming
An entire chapter is dedicated to responsible gaming, with measures, guidelines, and practices to prevent compulsive gambling, prevent and not induce debt, and protect vulnerable individuals.
The operator must have internal control mechanisms and systems that allow bettors to set daily limits on playing time, maximum losses, pause periods, and self-exclusion.
The communication, advertising, and marketing actions of the betting houses must adhere to social responsibility and the promotion of awareness of responsible gaming. All advertisements must include age restriction warnings using the symbol "18+" or "prohibited for those under 18 years old." They should not contain deceptive claims about the odds of winning or potential winnings that bettors can expect, nor present gambling as socially attractive or make claims that gambling contributes to personal or social success.
Expression of Interest
Companies interested in obtaining authorization to operate sports betting in Brazil may submit a preliminary expression of interest to the Ministry of Finance within a period of up to thirty days from the publication of Decree 1330, which is until November 26. The non-binding preliminary expression of interest should be sent to the General Coordination of Lotteries of the Ministry of Finance at the email address [email protected].
The Decree contains a form to be filled out by interested parties, who should also submit the company's articles of association, bylaws, or a commitment to establish a Specific Purpose Company (SPE). In the case of foreign companies, a commitment to establish a company in Brazil should be provided, written in Portuguese or accompanied by a sworn translation.
The submission of a preliminary expression of interest does not constitute prior authorization to operate sports betting, nor does it bind the company, which must, in due course, comply with all the requirements of Law No. 13,756/2018, Decree 1330, and other applicable legal and regulatory norms.
The opening date for the procedure to submit requests for authorization to operate sports betting in Brazil will be specified in a specific regulation to be issued by the Ministry of Finance.
Companies that respond to the expression of interest will have priority in the review of their requests for authorization to operate sports betting when the deadline for submission is opened.
In the form to be submitted with the expression of interest, the company should provide, in addition to its complete qualifications, the number of brands it intends to operate, as well as the types of operations, whether sports betting, online gaming, or both. The company should also indicate in the form whether it already holds licenses in other countries and should list them if it does.
Source: GMB
