The Ministry of Finance recently published five new ordinances that establish rules for the fixed-odds betting market in Brazil. The measures include requirements for games to be certified and also create stricter monitoring and oversight mechanisms. The regulation aims to bring more security and transparency to the market, making operations safer for both operators and consumers.
The betting sector generated approximately R$12 billion in 2023, a significant increase compared to the R$7 billion in 2020. This growth is related to the rising popularity of sports betting, especially driven by the advancement of online platforms. This rapid growth caught the attention of authorities, who decided to reinforce the rules to ensure operations are conducted safely and within the law, protecting everyone involved.
For Paula Martin, a lawyer specializing in Tax Law and partner at MBC Advogados, these new rules are an important milestone for the sector. ‘The ordinances bring more clarity about operators’ responsibilities and ensure that the Ministry of Finance’s guidelines are followed. This creates a safer environment,’ she states.
Consumer protection and game certification
Among the most significant changes is the requirement that all online games comply with the criteria of Ordinance SPA/MF No. 1,207/2024. Operators must ensure that bettors know exactly the chances of winning before placing a bet.
Additionally, Ordinance SPA/MF No. 1,231/2024 requires operators to provide tools to limit betting time and value, helping to prevent gambling disorders and protect bettors’ mental health.
‘The concern for health was taken seriously in these ordinances. Establishing time limits and available resources for betting helps prevent addiction, allowing for a harm-reduction betting experience,’ explains the lawyer.
Monitoring and penalties
The new rules also strengthen sector oversight. Ordinance SPA/MF No. 1,225/2024 defines how the government will monitor and ensure that betting is conducted legally. Meanwhile, Ordinance SPA/MF No. 1,233/2024 details the punishment process for companies that do not comply with the new rules, with fines and other sanctions applied depending on the severity of violations.
‘This reinforcement of oversight is essential to bring more transparency to the market. Additionally, it builds greater trust among consumers, who can now be sure they are betting in a legal and safe environment,’ emphasizes Paula.
Finally, Ordinance SPA/MF No. 1,112/2024 establishes clear rules for the money collected from bets to be transferred to the National Treasury. Operators are required to follow a specific procedure for these transfers, ensuring everything is done transparently. ‘These new rules are essential to maintain the financial balance of the sector, in addition to ensuring companies comply with tax laws,’ she points out.
Impact on the sector
With the implementation of the new ordinances, the fixed-odds betting market in Brazil gains more robust regulation, aiming to bring greater security for both operators and players.
These ordinances, in addition to establishing clear guidelines for operators, also aim to meet growing demands for more consumer protection. According to experts, it is important that operators strictly comply with the new rules to ensure the market continues to grow. ‘Regulation is an important step, but compliance with the rules by all is fundamental for the sector not only to grow but also to remain sustainable and safe,’ the lawyer highlights.
