iGaming News #016 | Irregular bets will be banned from operating in Brazil starting in october: understand the new ordinance

Opening today's edition is me, Larissa Iwai I PQO, Director of Risk, Compliance, Legal, and AML/CFT.

Ordinance SPA no 1.475/2024, published by the Secretariat of Prizes and Betting of the Ministry of Finance (SPA/MF) on Tuesday, September 17, establishes that, starting next month and until the end of December, only BET operators that are already active and have applied for authorization to offer fixed-odds lottery betting by September 17, the date the ordinance was published, may continue operating.

Today's news will highlight the updates brought by the new ordinance and what its publication means for iGaming operators. Check it out now. ??

Ordinance SPA no 1.475/2024 and What It Means for the iGaming Market

According to Law 14.790/2023, fixed-odds betting operators had until August 20, 2024, to apply for a license and secure the review and potential approval by December 31, 2024.

On September 16, 2024, the Secretariat of Prizes and Betting ("SPA/MF") published Ordinance SPA/MF no 1.475/2024, updating the conditions and deadlines for BET operators to comply with the new rules. It follows what was established in Law no 14.790/2023 and Ordinance SPA/MF no 827/2024, which regulate this type of betting.

The rule is clear: starting October 1, 2024, only companies that are already in operation and have applied for authorization from the Ministry of Finance before the ordinance's publication may continue offering fixed-odds betting in Brazil.

Bettors will be able to withdraw their money from unauthorized platforms until October 10, 2024. After that date, companies must still hold the funds and offer ways to return them, even if the websites are blocked.

Companies that did not apply for authorization to operate will be prohibited from operating in Brazil, will be notified, and will have their websites and apps blocked starting October 11, 2024.

Additionally, the ordinance states that companies that did not apply for authorization by September 17, the date the ordinance was published, may only offer fixed-odds betting after obtaining specific permission from the Secretariat of Prizes and Betting, as per Ordinance SPA/MF no 827/2024.

Operators who have already submitted their authorization request must inform the Secretariat of Prizes and Betting by September 30, 2024, using the Application Form provided in Annex of Ordinance 1.475/24, of the brands and websites they will use for betting. Starting January 1, 2025, only authorized betting operators will be allowed to operate, using domains with the extension "bet.br."

Finally, the new regulation allows SPA/MF to request documents to verify if fixed-odds betting companies are compliant. Supervision will be carried out by SPA, along with other authorities.

The rules apply to all types of bets covered by Law no 14.790/2023 and have been in effect since September 17!

So far, the Ministry of Finance has 119 operators who have submitted their license applications.

Is your company on the list?

See you next time!