The Ministry of Finance recently published five new ordinances that establish rules for the fixed-share betting market in Brazil. The measures include requirements for games to be certified and also create more stringent monitoring and enforcement mechanisms.The regulation seeks to bring more security and transparency to the market, making operations safer for both operators and consumers.
The betting industry earned about R$12 billion in 2023, a significant increase from the R$7 billion in 2020. This growth is related to the increase in the popularity of sports betting, especially driven by the advancement of online platforms.This rapid growth has caught the attention of authorities, who decided to strengthen the rules to ensure that operations are done safely and within the law, protecting all involved.
For Paula Martin, lawyer specialized in Tax Law and partner of the MBC Lawyers“The ordinances bring more clarity on the responsibilities of operators and ensure that the Ministry of Finance guidelines are followed. This creates a safer” environment, he says.
Consumer protection and certification of games
Among the most significant changes is the requirement that all online games follow the criteria of SPA/MF Ordinance no. 1.207/2024. Operators need to ensure that bettors know exactly the winning possibilities before placing a bet.
In addition, SPA/MF Ordinance no. 1.231/2024 requires operators to offer tools to limit the time and value of bets, helping to avoid gambling disorders and protect the mental health of bettors.
“A health concern was taken seriously in these ordinances.The creation of time limits and resources available to play helps to avoid addiction, allowing a gambling experience with” damage containment, explains the lawyer.
Monitoring and punishment
The new rules also reinforce the supervision of the sector. The Ordinance SPA/MF no. 1.225/2024 defines how the government will monitor and ensure that bets are made legally. Already the Ordinance SPA/MF no. 1.233/2024 details the process of punishment for companies that do not follow the new rules, with the application of fines and other sanctions depending on the severity of the infractions.
“This reinforcement in supervision is essential to give more transparency to the market. In addition, it creates greater trust among consumers, who can now be sure that they are betting on a legal and safe environment”, Paula highlights.
Finally, Ordinance SPA/MF no. 1.112/2024 establishes clear rules for the money collected from the bets to be passed on to the National Treasury. Operators are required to follow a specific procedure for these transfers, ensuring that everything is done in a transparent manner. “These new rules are essential to maintain the financial balance of the sector, as well as ensuring that companies follow the tax laws”, he points out.
Impact in the sector
With the implementation of the new ordinances, the fixed-share betting market in Brazil gains more robust regulation, aiming to bring greater security to both operators and players.
These ordinances, in addition to establishing clear guidelines for operators, also aim to meet the growing demands for more protection for consumers. According to experts, it is important that operators strictly comply with the new rules to ensure that the market continues to grow. “The regulation is an important step, but compliance with the rules by all is critical for the sector not only to grow, but also to remain sustainable and safe”, highlights the lawyer.
