The latest regulatory order from Brazil’s Secretariat for Prize Awards (SPA), Interministerial Ordinance No. 28, was published on May 22nd in the country’s Official Gazette. Established in April, the SPA plays a pivotal role in laying the foundation for betting regulations and ensuring their implementation. Ordinance No. 28 outlines significant responsibilities for the Ministry of Sport, which includes a 45-day period to comment on applications for betting licenses.
Earlier this week, the Ministry of Finance issued Ordinance No. 27, which provides a comprehensive 150-day timeline for the SPA to assess license applications. Within this period, the SPA is required to notify applicants about the acceptance or rejection of their license applications. Moreover, Ordinance No. 827 established a critical deadline of December 31st for betting operators to comply with the newly regulated market. From January 1, 2025, operators failing to secure a license will face penalties.
Legal experts and industry stakeholders express concerns about the 45-day assessment period allocated to the Ministry of Sport, fearing it could further delay the licensing process. Fabio Kujawski, a partner at Mattos Filho, highlights that such delays might impact operators’ advertisement campaigns in Brazil. Starting January 1, unlicensed operators will be prohibited from advertising, and their URLs could be blocked by the Ministry of Finance’s decision.
“As of January 1, 2025, all operators without a secured license will be considered as operating illegally. Their URLs may be blocked, and any form of advertising by these unlicensed operators will be deemed unlawful,” explains Kujawski.
Andre Santa Ritta, an associate lawyer at Pinheiro Neto Advogados, remarks that the overall timeline was generally well-received but acknowledges the pressure it imposes on the industry to meet these deadlines. “Indeed, the timeline is daunting, but the Ministry remains confident they can achieve it,” says Santa Ritta.
. He anticipates a significant increase in manpower at the regulatory authority in the upcoming weeks to meet these critical deadlines, pointing to similar precedents in other industries like finance.
The ordinance further specifies that applications will need to be registered with SIGAP, Brazil’s betting management system, and will subsequently be processed electronically by the Ministry of Sport. In parallel, applications will also be reviewed by the Attorney General of the Union to prevent discrepancies between the SPA and the Ministry of Sport.
Both the SPA and the Ministry of Sport bear the responsibility of ensuring the integrity of betting practices in Brazil. The Ministry of Sport is particularly tasked with reporting any suspected instances of match-fixing to the SPA. “The Prizes and Bets Secretariat of the Ministry of Finance and the Ministry of Sport are responsible for upholding the integrity of events and ensuring sporting results remain unpredictable, which are essential for fixed-odd bets,” notes Ordinance No. 28.
Additionally, the Ministry of Sport must maintain and update a list of sports entities that can be subjects of bets during sporting events. Ordinance No. 28 is set to be enacted on June 3rd.
If the Ministry adheres to its timeline, Brazil’s igaming and sports betting market is expected to be fully regulated by the end of July, rolled out in four well-defined stages. The implementation process is already nearing its midpoint. Stage one addressed the technical, payment, and security requirements that operators must comply with. Stage two, concluding at the end of May, focuses on the publication of anti-money laundering and anti-terrorist financing policies by the SPA.
Stages three and four will see the SPA releasing guidelines on security requirements for online gaming and how the industry will contribute to socially responsible causes, respectively.
President Luiz Inacio Lula da Silva set the regulatory wheels in motion by approving Bill 3,626/2023 in December. This bill officially permitted the establishment of a regulatory framework for gaming in Brazil, marking the culmination of a long-standing effort to regulate this burgeoning industry in one of Latin America’s most vibrant sporting nations. The enactment of these ordinances promises to elevate Brazil’s betting industry by clarifying operational standards and reinforcing the commitment to adhere to lawful and ethical practices within this sector.
