Alerts
- 18 September 2024
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Secretariat of Prizes and Betting approves new rule on the adaptation period for fixed-odds betting operators in Brazil
September 17, 2024, the Secretariat of Prizes and Betting of the Ministry of Finance (Secretaria de Prêmios e Apostas do Ministério da Fazenda – “SPA/MF“) published the Rule No. 1,475/2024, which establishes new rules on the conditions and deadlines of adaptation for legal entities that explore the lottery modality of fixed-odds betting in Brazil.
As the market was already aware, the deadline for companies operating in Brazil to adapt to the legal and regulatory provisions on the fixed-odds betting lottery ends on December 31, 2024, according to the SPA/MF Rule No. 827/2024. From January 1, 2025, companies that explore fixed-odds betting in Brazil without authorization from the SPA/MF will be subject to penalties.
Considering the recent news about reports of illicit activities in fixed-odds betting operations in Brazil, the Rule SPA/MF No. 1,475/2024 establishes that only companies in activity that have submitted an authorization request to the SPA/MF by the date of publication of the rule, that is, on September 17, 2024, will be comprised in the adaptation period. The assessment of whether a company is in the adaptation period will only begin on October 1, 2024, the date from which the exploitation of fixed-odds bets by a legal entity without authorization from the SPA/MF and that has not requested authorization by September 17, 2024, will be prohibited.
Legal entities that have submitted the authorization request to the SPA/MF within the deadline must indicate by September 30, 2024, their trademarks in activity and the internet domains where they will provide the service during the adaptation period.
If the SPA/MF identifies a website that exploits fixed-odds betting without authorization and whose owner has not requested authorization within this period, the SPA/MF will notify the competent authorities to block and delete the applications that offer the irregular service. Legal entities that have not requested authorization from the SPA/MF in the mentioned deadline will only be able to exploit the activity with prior authorization from the SPA/MF, including companies that already operate in the betting market in Brazil. It is important to note that SPA/MF Rule No. 1,475/2024 expressly provides that the practice of illicit actions will be considered in the analysis of the authorization request, considering the national interest and the protection of the interests of the community.
Lastly, SPA/MF Rule No. 1,475/2024 establishes that the SPA/MF will request States and the Federal District that exploit fixed-odds betting within their territories to indicate the authorized brands in activity and the respective internet domains.
Lefosse’s Public Law and Regulation Team closely monitors the changes that impact the Brazilian betting sector. For further clarification on this matter, or others that may be of interest to you, contact our professionals.
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