Sports betting and online gaming: what to expect in the wake of regulation
Brazil introduced rules for sports betting and online gaming in late 2023 via Law No. 14,790, which permitted companies authorized by the Ministry of Finance to run fixed-odds betting operations and provided legal certainty to both operators and bettors. The law provides that operators must meet certain technical requirements and pay authorization fees of up to BRL 30 million to use up to three different brands over a five-year period.
During 2024, the Ministry of Finance’s Secretariat of Prizes and Betting published several ordinances to organize the commercial exploitation of fixed-odds betting, introducing rules covering taxation, payment transactions, responsible gambling, money laundering prevention measures, as well as other subjects essential to running the activity in Brazil.
Brazil's sports betting regulations are now among the most modern and stringent in the world. They were essential given that betting had already been in operation in digital environments for several years. Everyone wins with the regulations – bettors have effective complaint and support mechanisms and can exercise all rights ensured in the relevant ordinances and Brazil's Consumer Defense Code. Companies also benefit as they operate with clear rules and a specific government body regulating and monitoring the sector. Finally, Brazil itself benefits from increased taxed revenue from a sector that continues to grow exponentially
Fabio Kujawski
Partner
The law and the ordinances represent a significant milestone for Brazil's sports betting and online gaming market. They provide strong legal foundations for a market that needs clear and consistent rules to operate responsibly and successfully. The lack of regulation in this sector in previous years highlighted an urgent need for these measures. However, given the innovative nature of the activity, new challenges and regulatory demands are likely to arise as it continues to develop in Brazil. Ensuring that the rules are applied sustainably and that players willing to invest and operate in the Brazilian market can do so with legal certainty is essential
Lisa Worcman
Partner
Only companies authorized by the Ministry of Finance will be able to run sports betting
Mattos Filho’s experts detail the procedure, requirements, necessary documentation, and deadlines for companies interested in entering this market in Brazil
Ordinance No. 1,475/2024 stipulates that sports betting operators who have not requested authorization are prohibited from operating betting services to Brazilians
Secretariat of Prizes and Betting publishes five new ordinances regulating issues such as online gaming, responsible gaming, operators’ and players’ rights and duties, inspections, penalties and taxes
