Ministry of Finance Publishes Ordinance that Defines General Rules for Operating in the Betting Market
BRAZIL (October 30, 2023) — The Ministry of Finance published, on Friday (10/27), Ordinance No. 1,330 , which establishes general rules for companies that wish to operate in the fixed-odd betting market, popularly known as “bets”. The measure aims to guarantee consumer protection, establishing fundamental rights, guaranteeing data protection and promoting the concept of responsible gaming.
According to the Ordinance, companies that wish to operate in the segment have the option of expressing their interest in advance within a period of up to 30 days, which will guarantee priority in the analysis of requests for authorization for the commercial exploitation of fixed-odd bets, upon opening the deadline for submitting the application. The ordinance that will define the parameters necessary for this authorization will be published soon.
The Ordinance published today establishes the creation of a call center in Brazil to serve bettors, which should generate tens of thousands of jobs in the country, based on the growth of the regulated market.
The set of rules that define the basic rules for operating in the betting market published this Friday in the Official Gazette of the Union prohibits the granting of concessions to companies whose partners, managers or members of the corporate structure are professional athletes, members of the technical committee, referees or managers of Brazilian sports teams. Foreign companies may be authorized to explore the fixed-odd betting lottery by setting up a subsidiary in Brazil.
Betting operators, in accordance with the rules, must be clear in their information and can only use users’ personal data with express permission. The aim is to establish a solid foundation so that bettors have confidence in the system and are aware that their rights and personal information are secure.
Measures are also outlined to prevent and monitor illegal practices, such as money laundering and other crimes. Operators in the sector will have the obligation to report suspicious operations to COAF (Financial Activities Control Council). This measure seeks to protect the integrity of the sector and also ensure that the activity occurs within ethical and legal standards.
Responsible gaming is provided for in the Ordinance and companies will have to adopt standards to prevent gambling addiction and bettors’ debt. Betting for children under 18 will be prohibited and identification of bettors will be mandatory. The operator must also have internal control mechanisms and systems that allow the bettor to establish a daily limit on playing time, maximum loss, pause period and self-exclusion.
To place bets, it will be prohibited to accept cash, credit cards, bank slips and third-party deposits into the bettor’s account. The ordinance also deals with communication and advertising actions that must be guided by social responsibility and promoting awareness of responsible gambling.
For example, advertising and marketing actions in schools and universities that convey misleading statements about the probabilities of winning and those that suggest that gambling contributes to personal success or improvements in financial conditions are prohibited. Commercial advertising for the fixed-odds lottery modality must be accompanied by the message “Play Responsibly”.
The entry into force of the Ordinance is immediate, reflecting the urgency perceived by the Ministry of Finance to adequately regulate and supervise the fixed-odd betting market, ensuring a safe and transparent environment for everyone involved.
Companies that wish to previously express their interest in the commercial exploitation of fixed-odds betting in the national territory may send the declaration signed by the company’s legal representative and the duly completed form to the email email@example.com .
Documentation models are available on the Ministry of Finance website (gov.br/fazenda/apostas).
SOURCE: Ministry of Finance.Tags: Ordinance No. 1, 330, fixed-odd betting market, Responsible gaming, Ministry of Finance