The ordinance was published in the Official Gazette of the Union at the end of May. To obtain authorization, ‘Bets’ will have to meet criteria related to five categories: legal qualification, tax and labor regularity, suitability, economic-financial qualification and technical qualification.
Since the publication of the ordinance, companies can provide legal documentation and register with the Betting Management System (Sigap). Those that obtain authorization and pay the concession of R$30 million (US$ 5.6m) will be able to operate up to three commercial brands in the national territory for five years.
According to the Ministry of Finance, the criteria were established to provide more protection to bettors and ensure that authorized companies have a corporate governance structure “compatible with the complexity, specificity and risks of the business”. From January 1st, unauthorized bets will be subject to penalties.
The Prizes and Bets Secretariat of the Ministry of Finance has 180 days to analyze bet requests. As a transitional rule, companies that request authorization by August 20, 90 days after the publication of the ordinance, will receive a response later this year. All companies authorized in this first group will have authorization ordinances published jointly.
In addition to proving high economic and financial capacity, bets must have headquarters and a service channel for bettors in Brazil, comply with policies to prevent money laundering and terrorist financing, promote responsible gambling, guarantee the integrity of bets, prevent manipulation of results and adopt good advertising and advertising practices.
Source: EBC
