The Ministry of Finance (MoF) has recently issued Ordinance 827/24, setting the stage for a regulated and structured betting market in Brazil. This ordinance outlines the comprehensive rules for private economic agents seeking authorization to commercially exploit betting activities within the country.
Adjustment Period
The compliance period for existing legal entities operating in Brazil starts from the publication date of this ordinance and ends on December 31, 2024. Post this period, starting January 1, 2025, any legal entities engaged in betting without proper authorization from the MoF will face applicable penalties.
Exclusivity and Eligibility
The ordinance specifies that only authorized legal entities can commercially exploit betting. Eligibility is restricted to legal entities established under Brazilian law, with their headquarters and administration based in Brazil.
- National companies or subsidiaries of foreign companies must have a Brazilian holding with at least 20% of the share capital.
- Branches, subsidiaries, agencies, or representations of foreign companies headquartered abroad are not eligible.
Grant Value and Duration
The authorization, valid for five years, requires a payment of BRL 30 million. This authorization permits the operation of up to three commercial brands on electronic channels. It is important to note that the authorization is personal, non-negotiable, and non-transferable.
Authorization Procedure
Interested parties must submit an application along with documents proving their:
- Legal qualification
- Fiscal and labor regularity
- Good standing
- Economic-financial qualification
- Technical qualification
Required Documents
Applications must include:
- A completed and digitally signed authorization application with annexed forms.
- Documents translated by a sworn public translator if originally in a foreign language.
- Negative criminal record certificates and declarations of the lawful origin of funds.
Economic-Financial Requirements
Applicants must meet the following economic-financial criteria:
- A minimum financial reserve of BRL 5 million.
- A minimum fully paid-up share capital of BRL 30 million.
- A minimum net worth of BRL 30 million.
Technical Qualification
Applicants must also provide:
- A request protocol or technical certificate of the betting system.
- Implementation of policies for money laundering prevention, responsible gambling, bet integrity, among others.
- A 24/7 customer support structure in Portuguese.
Authorization Publication
Upon payment and submission of proof, the authorization will be published. The review process for applications will take up to 150 days.
Final Provisions
Applications submitted within the first 90 days after the publication of the ordinance will receive priority treatment.
Ordinance 827/24 represents a significant step towards a regulated and transparent betting industry in Brazil, ensuring fair play, integrity, and responsible gambling while opening new avenues for economic growth and investment in the region.
