With the publication of Ordinance No. 827/2024, we have begun the licensing process for sports betting operators in Brazil. The notice brings some governance requirements that will require a great deal of professionalization on the part of companies operating in the country.
Among the criteria for obtaining the license is the value of R$65 million in investments, divided into R$30 million grant, R$30 million minimum share capital and R$5 million financial reserve for liquidity risk.
With this investment, the operator will be able to obtain a license to explore up to three brands. If the company wants to explore more bets, it will have to proportionally increase the grant amounts and share capital.
The minimum share capital requirement was expected. What surprised the market was the requirement to maintain net equity, as it is part of the share capital. To keep it at R$30 million, companies will have to make a profit or contribute resources in case of loss, so as not to run the risk of losing their license.
For sports betting companies that file the authorization request within 90 days of the date of the ordinance, that is, August 20th, the rule guarantees a response on licensing by December 31st of this year.
By January 1, 2025, we must have authorized bookmakers and a ban on payment methods for unauthorized bookmakers. This will change the entire market, increasing legal security in the Brazilian business environment.
Starting next year, operators who are operating without the appropriate authorization for commercial exploration will be subject to penalties and fines.
Pedro Simões
Partner at Veirano Advogados
