Brazil gambling regulation complete as government publishes final ordinances
With less than five months until the anticipated launch date of the legal betting market in Brazil, the final gambling regulations have been outlined in ordinances published by the ministry of finance’s Secretariat of Prizes and Bets (SPA). To learn more about Brazil’s gambling regulations, consult our specialists at EGS Digital Services. We can help you elevate your business or launch your new iGaming venture. Contact us today! The four-phase regulatory rollout set out in April is now complete and the launch of legal gambling in Brazil is on track for 1 January 2025. Operators have been submitting their applications for licences, with the total number of requests now at six after NSX Group’s Betnacional filed its application on Thursday (1 August) with less than three weeks to go until the 90-day initial window of preference closes. Operators who apply before 20 August will have their applications prioritised by the SPA and ensure they are processed by the expected launch date of the market. Those application requests are likely to accelerate now the full regulations have been established. Increased clarity on online games Normative Ordinance No 1,207 was published on Wednesday (31 July) and gave the green light for online games in Brazil, including the controversial Fortune Tiger game. Udo Seckelmann, head of gambling & crypto at Bichara e Motta Advogados, believes the decision to allow games such as Fortune Tiger is the correct one to aid channelisation towards legal offerings. “The exclusion of games gives power to the grey/black market, which is what the regulator doesn’t want,” Seckelmann says. Aposta Ganha CCO Hugo Baungartner previously told iGB he expects the publication of the online games ordinance to be the catalyst for operators to apply. With six applications in already, Seckelmann still believes around 60 operators will apply in total. Baungartner, meanwhile, predicts the tally will be between 20 and 25. Brazil races to the finish line Following the publication of Normative Ordinance 1,207, four more were announced to round out the regulation rollout. These covered industry contributions to the state, the monitoring and inspection of gambling activities, responsible gaming (RG) guidelines and sanctioning for those operators who fall foul of the regulations. After the final ordinance was published, the Brazilian Institute of Responsible Gaming (IBJR) praised the “effort and commitment” shown by federal agencies to help establish the regulations. “We hope that this sector will develop responsibly, following the guidelines proposed by SPA,” the IBJR statement read. Normative Ordinance No 1,225 on monitoring and inspection Normative Ordinance No 1,225 Inspection measures will apply to those individuals or legal entities that have the required authorisation from the SPA to operate fixed-odds betting. Those actions must be based on evidence and be proportionate to the identified risks. The ordinance established the SPA can coordinate with other public bodies to monitor activities and ensure ongoing compliance with regulations. Inspections must be scheduled and prepared by the SPA. They can be remote or in-person and will last as long as necessary to “elucidate the facts” of a situation. If requested to, operators must give information within 10 days of receipt of an official request letter. Failure to comply could lead to harsher punitive action. Operating agents must also contact the SPA and public prosecutor’s office if any manipulation or reports of such activities are raised. Normative Ordinance No 1,212 on social allocations Later on Wednesday, the SPA published Normative Ordinance No 1,212, which centres on how the gambling industry transfers proceeds to the state. Transfers must be collected through a Federal Revenue Collection Document (DARF) and then made to the National Treasury Single Account. Operating agents will be responsible for using the correct revenue code and will be subject to civil, administrative and criminal liability if the process is not done correctly. Should prizes expire for bettors, the prize amount will be collected by the National Treasury Single Account. All records of transfers to the treasury must be kept available to the SPA for at least five years. A 12% gross revenue tax for operators has already been established, as well as a monthly inspection fee on a sliding scale from equivalent to $10,000 (£7,847/€9,232) to $390,000. Additionally, there will be a 15% tax on player winnings above BRL2,824 (£437.77/€508.05/$547.25). Normative Ordinance No 1,231 on RG Normative Ordinance No 1,231 informed operators they must “act diligently” in the development of their betting systems, as well as advertising and marketing, with RG principles respected to try and combat the rise of gambling addictions. Awareness of the risks of gambling addictions must be promoted by operators through collaboration with the educational sector, as well as their own campaigns. Communication with gamblers must be maintained, while an RG policy must also be developed by each operator, with tools such as betting limits and self-exclusion periods available for players to protect against gambling harms. Operators can also suspend bettors deemed high risk. It also falls upon operators to prevent use of its systems from demographics such as those aged under 18 and anyone who may be able to impact the results of a sports fixture. Influencers banned from advertising In terms of marketing, all advertising must be guided by social responsibility and the promotion of RG. It also must work against offshore gambling. Additionally, ads must not present betting as “socially attractive” and cannot involve statements from influencers or celebrities that imply gambling leads to personal, social or financial success. Eduardo Carvalhaes and Karen Coutinho, lawyers and spokespersons for Brazilian law firm Lefosse, describe the laws on advertising as “vital” to clarify what operators will be allowed in their marketing. Seckelmann agrees, saying Normative Ordinance No 1,231 will help to protect vulnerable players from gambling harms, with the ban on influencer advertising a key component. “Now, for the first time, Brazil has clear directions on how betting advertising shall be conducted and how the responsible gambling principles shall apply to their operations in order to protect minors and the vulnerable,” Seckelmann explains. “The problems and issues
Celebrity betting ads to be prohibited under new rules
BRAZIL – New Rule Restricts Online Betting Advertising and Impacts Digital Influencers Introduction Starting January 1, 2025, the landscape of online gambling advertising in Brazil will change dramatically. In an unprecedented move, the federal government has banned the broadcasting of advertisements that use celebrities and digital influencers to promote bets that do not comply with the new regulations. The new rule, published in the Official Gazette, aims to protect consumers, especially the most vulnerable, from misleading appeals and the glamorization of gambling. Which games are affected by the new rule? The ban covers the lottery modality of fixed-odds betting, which includes a wide range of online games, such as: What does the new rule prohibit? The Ministry of Finance’s ordinance establishes several restrictions on online gambling advertising, including: Why is this change important? The ban on gambling advertisements with celebrities aims to: Conclusion The new rule represents a significant advance in the regulation of the online gambling market in Brazil. By prohibiting misleading advertising and the use of celebrities, the government seeks to protect consumers and combat the social problems associated with compulsive gambling. Source: GMB
Brazil online gambling regulations: rules for slots, crash, roulette and other bets
An ordinance published this Wednesday (31) classifies these types of games in the online gaming category, legalized by the betting law. Games will need to be certified and must comply with a set of standards. The Ministry of Finance published this Wednesday (31) an ordinance that defines rules for slot machines, crash games, roulette, blackjack, dice and other types of online betting. The rules authorize betting platforms based in Brazil to offer, for example, games such as Fortune Tiger and Aviator. You can follow the other ordinances in the articles published on the EGS Digital Services blog. To clarify further questions about licensing in Brazil or anywhere in the world, talk to our specialists. In addition to sports betting, this law dealt with fixed-odds online games (in which the bettor knows how much he will win based on how much he bets) and in which the result is defined randomly (like in a slot machine). Currently, Fortune Tiger and similar games are offered to Brazilian gamblers through websites based abroad. The government’s goal is that, starting January 1, 2025, when the regular online betting market begins in Brazil, they will be offered through Brazilian platforms (which will have an address ending in bet.br). The ordinance The ordinance also defines a minimum RTP of 85%. This means that, if the operator collects, for example, R$100,000 in bets, it must distribute at least R$85,000 in prizes. The remaining 15% will be the company’s profit. It defines that the result of the online game will be determined by the outcome of a random future event, from a random generator of numbers, symbols, figures or objects; It defines that online games must indicate, at the time of the bet, the multiplication factor that determines how much the bettor will receive if he or she wins; Offer the payout table, indicating all the possibilities of winnings for the bettor before the bet; It determines that the platform must clearly inform all games available for betting and what winnings the bettor can have with each one; It determines that the bettor cannot be forced to bet just by selecting a game theme. The bettor must be allowed to return to the home menu or theme selection screen without having made any bet; No bet can leave the bettor with a negative balance; The platform must show the bettor how many credits he has at any time when bets can be made; It determines that a bettor who is inactive for 30 minutes must be considered to have left the game; It prohibits the games from being offered in physical format, such as slot machines, which remain prohibited;. The text was the most anticipated by the betting sector because, according to Magnho José, president of the Instituto Jogo Legal (IJL), online games represent more than 60% of the revenue of this market. “And, depending on what was written, the sites would decide whether to obtain a license to operate in the country.” The Duties of Applications According to the ordinance, the betting application must provide some information about the online game, such as: Rules by game types The ordinance also imposes rules so that the bettor is aware of what he is competing for in multiple bet games. According to the document, “each individual bet placed must be clearly indicated so that the bettor has no doubts about which bets were made and the credits wagered on each of them”. With the regulation, each prize won must be presented to the bettor in a way that he or she clearly associates the prize with the bet that paid for it. The ordinance presents variations in rules for different types of games. They are: Online Line Games, online Crash Games, online Card Games, online Roulette Games, online Sports or Racing Games, online Dice Games and online Ball and Number Draw Games. Understand each type of bet: 🎰 Line Games According to the regulations, in this type of game, the player must receive a clear and detailed presentation of the available paylines and the winning combinations displayed on the game screen. In the case of games that allow multiple credits to be bet on selected lines, the graphic art must: for linear payouts, clearly indicate that the winnings for each selected line are multiplied by the respective multiplication factor or for non-linear payouts, inform all possible bets and their respective prizes; In addition, the multiplication factor, common in online casino-type gambling games, must be clearly displayed and the graphic art must indicate the rules and limitations of how the payouts are evaluated. Thus, the player must be informed about which winning lines are considered, that is, whether from left to right, from right to left, or both. In addition, the betting company must inform how the individual symbols are considered: whether the payouts occur with sequential or scattered combinations. 🚀 Crash Online Games This type of game is popularly known on platforms as the “rocket game” or “little plane game”, and may have other variables. In the”Aviator” model, for example, as soon as an aircraft starts flying, the prize value increases and the bettor has to decide when to stop the flight – if the word Crashed appears before then, the bet is lost. According to the regulation, the games must be random and not based on the bettor’s skill. Furthermore, according to the ordinance, the rules must indicate: the frequency of the increase in the prize multiplier value that the bettor can reach; the minimum multiplier value at which the bettor can redeem the prize; any functionality for the bettor to pre-select the prize multiplier value at which an automatic redemption will occur; The game must clearly display the value of the increasing multiplier, according to the defined frequency and must also determine to the bettor when: manual redemption by the bettor while the value of the multiplier is increasing and is above the minimum value; automatic redemption when the value of the prize multiplier increases to
Lula signs decree that creates National Sports Betting Secretariat of Sports Ministry
By decree, Brazil’s President Luiz Inácio Lula da Silva created the National Sports Betting Secretariat, within the structure of the Ministry of Sports. As has been expected, the new area will be responsible for analyzing and endorsing licenses approved in the similar unit of the Ministry of Finance and also coordinating government policies to combat manipulation of results. The new National Secretariat for Sports Betting and Economic Development of Sports was created by Decree 12,110, which approved a new structure for the Ministry of Sports’ staff. The area will have four divisions: Electronic sports; Monitoring and evaluation of sports betting; Integrity; Entrepreneurship and the digital economy of sport. In the area of sports betting, the new Secretariat will be responsible for evaluating and approving license requests from iGaming operators after submitting the request to the Secretariat of Prizes and Betting (SPA) of the Ministry of Finance, in addition to coordinating actions to combat match manipulation. To news outlet Empresa Brasil de Comunicações, the Minister of Sports, André Fufuca, reinforced what he had already said regarding the unit’s duties, which will have as its main action the monitoring and inspection of everything that involves sporting issues linked to betting, including the combating manipulation and analysis of license requests made to the SPA. Furthermore, the area will plan, coordinate and implement partnerships with public and private entities, nationally and abroad, to combat match-fixing in sports associated with sports betting. “We are going to create a structure within the Ministry that will monitor and supervise the modality. To achieve this, we will work with the necessary integrity and transparency,” declared Fufuca. The new secretariat of the Ministry of Sports will not have the final say regarding license requests from sports betting and online gaming operators, which will continue to be centralized in the Secretariat of Prizes and Bets, headed by Régis Dudena. But it will have to endorse the approval, otherwise it will be up to the Attorney General’s Office to give the final vote on whether or not to approve an operator. A board (Monitoring and Evaluation) of the new area will be responsible for analyzing the license requests presented to the SPA, granting approval – or not – to the authorization requests. It will also monitor all sporting competitions involving fixed odds betting For more informations about the igaming industry in Brazil, speak to the specialists of EGS Digital Services. We have everything you need to boost your betting business or start a new venture with licenses, gaming platform, payment provider, compliance and more. Send us a message here! Font: GMB
Safe and Responsible Betting: New Rules Strengthen Security in Brazil’s Sports Betting Market
The sports betting landscape in Brazil is entering a new chapter with the implementation of a regulation that reinforces the security, responsibility, and transparency of the sector. The measure, which complements the regulation of fixed-odds betting in the country, aims to protect players, prevent illegal activities, and promote a reliable and responsible gaming environment. Protecting the Bettor at the Forefront: A cornerstone of the new regulation lies in the implementation of robust mechanisms to identify and classify the risks of bettors. Betting operators are responsible for creating policies that include identity verification, financial capacity assessment, and identification of PEPs (Politically Exposed Persons) and their relatives. This measure aims to ensure that bets are placed in a conscious and responsible manner, preventing indebtedness and other financial risks to players. Combating Money Laundering and Terrorism Financing: The regulation is also concerned with combating illicit practices such as money laundering and terrorism financing. To this end, it establishes clear criteria for reporting suspicious transactions to COAF (Financial Activities Control Council). Betting operators take on the role of sentinels against these activities, contributing to the security of the Brazilian financial system. Commitment to Sustainability and Corporate Governance: Recognizing the importance of social and environmental responsibility, the regulation encourages the adoption of ESG (Environmental, Social, and Governance) policies by betting operators. This initiative demonstrates the industry’s commitment to sustainable practices and the promotion of ethical and transparent corporate governance. Alignment with the Anti-Corruption Law: The implementation of compliance policies, aligned with the Anti-Corruption Law (Law 12.846/2013), reinforces the ethical and responsible stance of the sports betting market. This measure aims to ensure the fairness of operations and prevent corrupt practices, consolidating trust in the sector. A New Level for Sports Betting in Brazil: The new regulation marks a significant step in the evolution of the sports betting market in Brazil. By prioritizing player safety, operational transparency, and social responsibility, the measure contributes to building a trusted, sustainable, and internationally aligned gaming environment. This initiative paves the way for the orderly growth of the sector, attracting new investments and generating opportunities for the country’s development. For more information about regulation in Brazil and anywhere in the world, talk to the experts at EGS Digital Services. With our vast experience in the market we can help your gaming and betting business to prosper and grow. Font: Gov.br
