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How to obtain authorization for fixed-odds betting in brazil: a guide for entrepreneurs

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The betting market in Brazil is undergoing a significant transformation, and the recent Law No. 14,790 of 2023, along with SPA/MF Ordinance No. 827 of 2024, establishes a new regulatory framework for the exploitation of fixed-odds betting in the country. For entrepreneurs interested in entering this promising sector, it is essential to understand the requirements, deadlines, and regulations.

In this article, we will detail the key points that you, as a business owner, need to know to obtain authorization for fixed-odds betting and operate legally and securely. We will discuss legal requirements, the authorization process, deadlines, and important considerations.

 

1. Understanding the new regulation

 

Law No. 14,790/2023 sets the guidelines for the commercial exploitation of fixed-odds betting in Brazil, a sector that includes sports betting platforms and online games. The main change brought by this legislation is the need to obtain official authorization from the Ministry of Finance, through the Secretary of Betting (SPA/MF), to operate legally in the country.

Entrepreneurs interested in entering the betting market must strictly comply with the requirements, ranging from corporate structure to the specifics of the platforms used.

 

2. Requirements for obtaining authorization

 

One of the fundamental requirements established by Art. 7, §1, item IX of Law No. 14,790/2023 is the participation of Brazilians in the company’s shareholder structure. The law requires that the applicant company has at least 20% of its capital held by Brazilian shareholders. This requirement can be fulfilled by both natural and legal persons, provided they are duly constituted under Brazilian law and headquartered in the country.

In addition, the ordinance requires that the company’s directors be statutory, which means they must be formally appointed in the company’s corporate acts. These positions cannot be held by employees hired without proper statutory appointments.

Another point to note is the National Classification of Economic Activities (CNAE). The SPA/MF Ordinance guides that Commercial Registries in Brazil should only accept CNAE 9200-3/99, described as “Fixed-Odds Betting Exploitation.” The description must be clear and specific, avoiding generic terms like “betting or unspecified activities.”

 

3. Deadlines and transition regimes

 

To facilitate the authorization process, SPA/MF Ordinance No. 827/2024 provides two deadline regimes:

  • General Regime: In this regime, the application for authorization will be analyzed within 150 days from the date of the application submission.
  • Transition Regime: This regime applies to companies that submit their application within the first 90 days following the ordinance’s publication, i.e., until August 22, 2024. In this case, the analysis period may extend to 180 days.

 

Authorizations granted under the transition regime must be published by December 31, 2024, allowing authorized companies to start operating from January 1, 2025.

 

4. Operational flexibility: outsourcing and customer service

 

Another highlight is the possibility of outsourcing customer service, a crucial measure for companies that prefer to focus their efforts on other operational aspects. However, the company must designate a director responsible for customer service within its organizational structure, as stipulated in item V of Art. 7 of the law.

The regulation also prohibits the use of domain names that may cause confusion with the company’s brand. Only registered trademarks can request a domain with the “.bet.br” extension, reinforcing the need for brand protection in the digital environment.

 

5. The betting system structure

 

SPA/MF Ordinance No. 722/2024 provides important details about the betting system, which must be certified according to the established technical requirements. The system must integrate betting platforms and online games and manage bettors’ accounts, financial transactions, statistics, and other essential subsystems.

It is crucial that the system complies with technical standards, and the technical evaluation report must be submitted to the SPA/MF within 90 days after the authorization is granted.

 

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6. Conclusion: planning and compliance are essential

 

For entrepreneurs who want to enter the fixed-odds betting market in Brazil, it is crucial to ensure compliance with all legal and technical requirements. From corporate structuring to system certification, the process can be challenging, but it is a promising path in a market with high growth potential.

Attention to the deadlines and requirements established in Law No. 14,790 and SPA/MF Ordinance No. 827 is essential to ensure your company’s success in this new regulatory environment. CLM Controller provides all the necessary support to ensure your company is fully compliant with the legislation, guaranteeing legal security and optimizing operational efficiency in the authorization process. With a specialized team, CLM Controller can assist from corporate structuring to the implementation of compliant systems, facilitating the path to success in the betting sector.

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