Law No 14.790, which amends Law No 13.756, of December 12, 2018, to regulate the modality called “fixed odds betting”, was sanctioned by the President of the Republic at a time when the Brazilian betting market is growing exponentially, promising be a game changer for operators in the country.
The rule, which will be discussed in a webinar organized by Mattos Filho on January 31st, at 2:30 pm (Brasília time), now allows the exploration of fixed-odd betting on sporting events and online gaming by companies authorized by the Ministry of Finance (MF).
Online gambling is defined as “an electronic channel that enables virtual betting in a game in which the result is determined by the outcome of a random future event, based on a random generator of numbers, symbols, figures or objects defined in the system of rules.” As a result, the original scope of the legislation, which was only to place fixed-odd bets on sporting events, was expanded, allowing for a series of new business models.
The maximum grant value is established at R$30 million for the exploration of up to three brands for up to five years. Authorized companies must establish themselves in Brazil and comply with certain conditions and technical requirements, which must still be detailed by the MF. Among these requirements, the Ministry must provide for proven knowledge and experience in games, betting or lotteries; technical and cybersecurity requirements and minimum service structure.
In addition to operators interested in applying for a license, application and connection providers, online or social media platforms, technology companies and any other entities that have relationships with operators (such as football clubs) must pay attention to the impacts that the new law may entail when they provide services or enter into commercial relationships.
For example, application or connection providers and other companies that disseminate advertising may be notified by the Ministry to block electronic websites, delete applications and/or exclude irregular campaigns, as applicable.
To begin the authorization process for interested companies, the MF must also publish new regulation(s) to detail provisions provided for in the law, including the minimum requirements for eligibility and authorization procedure. However, interested companies can advance their preparation and organization to apply for the license.
For an overview of the topics approved by the law and guidance on what interested companies can anticipate until the regulations are published, register for the webinar organized by the Mattos Filho office here.
Source: Mattos Filho
