A new period has been opened for accreditation requests, allowing interested companies to participate in this new window of fixed-odds betting licenses. The first phase of the Notice, involving expression of interest and document submission, begins on June 3rd and ends on July 3rd.
Once this document submission stage is completed, the papers received will be analyzed by the Lottopar Special Accreditation Commission. This is where companies may be qualified to continue the accreditation process or disqualified.
This document review, along with other accreditation stages, complies with the conditions and specifications outlined in Edict 01/2023 - Fixed-Odds Betting Accreditation. The announcement of qualified companies is scheduled for the second half of July.
Despite being a new window with the reopening of dates for new fixed-odds sports betting companies to participate in accreditation, the rules and provisions remain the same as the first accreditation period specified in the Notice.
Among the already established conditions, every authorized operator must be connected to the management platform and payment methods contracted by Lottopar, ensuring security in Fixed-Odds Betting (FOB) operations.
Furthermore, they must provide a guarantee of R$ 5.8 million (US$ 1,16m) pay a fixed grant of R$ 5 million (US$ 1m), and a variable grant of 6% on the gross revenue of the concessionaire (GGR), which is the total revenue collected from the sale of lottery products, minus the payout (amount destined for prize payments) in the same period.
"This is a new opportunity for companies in the sector to participate in accreditation in Paraná, the fastest-growing state in Brazil, a leader in public transparency, sustainability, and a reference in lottery management, with legal certainty, respect for territoriality, and pioneering spirit," said Lottopar President Daniel Romanowski.
"We were the first state to accredit testing and certification laboratories, we are the only lottery in Brazil associated with three of the world's largest responsible gaming and sports results manipulation prevention institutions (CIBELAE, WLA, and ULIS), we were the first lottery to contract an integrated management and payment platform, among other actions, which prevent currency evasion and money laundering."
"For all these reasons, I affirm that Paraná is the most attractive state for sports betting companies to work in a regulated manner and help build a safer, fairer, more reliable, and responsible market."
iGaming
The inclusion of online games in this new accreditation period complies with the provisions of Federal Law No. 14,790, dated December 29, 2023, which amended Federal Law No. 13,756 of 2018, creating the fixed-odds lottery modality for virtual events of online games.
Thus, this new accreditation window opens up the possibility for authorized concessionaires already operating in the state of Paraná, as well as for those who may become eligible to operate after this new accreditation window, to choose whether or not to offer online games. This is not mandatory but optional.
The offering of online games is exclusively authorized in a virtual environment, in the form of fixed odds, based on virtual events with outcomes determined by the result of a future random event, using a Random Number Generator, symbols, figures, or objects. It is mandatory, for each online game, to disclose a prize table, its algorithm, as well as the potential winnings for each play.
In fixed-odds betting, the bettor knows how much they can win and how they can win before placing the bet, as the rules must be clear and visible at the time of betting.
Advertising and marketing of iGaming
To ensure a healthy and responsible betting environment, Lottopar, through Ordinance No. 035/2024, establishes rules that must be followed by concessionaires in the commercialization of online games, including:
"Article 55. It is prohibited for the Concessionaire of Fixed Odds Betting on Virtual Events of iGaming disseminate advertising or commercial propaganda that:
I. Has as its object or purpose the disclosure of the brand, symbol, or name of legal or natural persons, or the electronic or virtual channels used by them, without the prior authorization required by this Ordinance.
II. Conveys unfounded claims about the odds of winning or the potential winnings that bettors can expect.
III. Present the bet as socially attractive or contain statements from well-known personalities or celebrities suggesting that gambling contributes to personal or social success.
IV. Suggest or imply that betting can constitute an alternative to employment, a solution to financial problems, an additional source of income, or a form of financial investment.
V. Contribute, in any way, to offending cultural beliefs or traditions of the country, especially those opposed to gambling.
VI. Promote marketing in schools and universities or even sports betting targeted at minors.
§1. It is prohibited to carry out any type of advertising or propaganda in physical or virtual media without the indication of the age rating directed, as provided for in Law No. 8,069, of July 13, 1990 (Child and Adolescent Statute).
Article 56. It is prohibited for the Concessionaire, as well as its subsidiaries and parent companies, to acquire, license, or finance the acquisition of rights to sports events held in the country for the emission, dissemination, transmission, retransmission, reproduction, distribution, availability, or any form of display of their sounds and images, by any means or process."
SECURITY - To ensure the security of the entire operation involving fixed-odds betting (FOB), companies that go through all stages of accreditation and consequently to the condition of authorized concessionaires must present the certifications described in Article 3 of Ordinance No. 035/2024, which are GLI-33 and GLI-19. Additionally, Article 53 establishes that "the exploitation of any online game that does not have GLI standard certification or that the bettor is not previously aware of the multiplication factor of their bet, as well as the estimated prize amount, will not be allowed."
Legislation
This Notice is legally based on Federal Law No. 8,987, of February 13, 1995; Federal Law No. 13,756, of December 12, 2018; Federal Law No. 14,133, of April 1, 2021; Federal Law No. 14,790, of December 29, 2023; State Law No. 20,945, of December 20, 2021; State Decree No. 10,086, of January 17, 2022; State Decree No. 10,843, of April 26, 2022; State Decree No. 2,434, of June 7, 2023; State Decree No. 5,039, of March 1, 2024, as well as the terms established in the Notice and its Annexes.
The Notice is available in full on the Transparency Portal, on the Paraná Purchasing Portal, and the official website of Lottopar, accessible through this link.
Questions arising from the interpretation of this NOTICE and its Annexes may be clarified, provided they are sent to [email protected]
Source: GMB
