Brazilian government updates rules for online betting: what's changed and what to expect

After sanctioning the law that created the "betting market" in Brazil, the federal government has been working on ordinances to regulate the sector. From the end of last year until this Thursday (1st), the Ministry of Finance published guidelines ranging from legal certainty for bookmakers to the protection of punters' rights.
The rules prohibit advertising by unauthorised companies and allow punters to limit or delete their accounts.

The ordinance also regulates incentives, early withdrawals and betting exchanges, and includes anti-money laundering measures such as facial recognition.

Authorised companies will have domains ending in ".bet.br" and will be listed on the ministry's website.

Technical guidelines

On Wednesday (31), other guidelines were published to regulate dice games, slot machines, crashes, cards, roulette, sports or races and ball and number draws.

Until now, only sites based outside the country were allowed to offer this type of service. With the publication of the ordinances, which come into force next year, companies based in Brazil will be able to offer games from January, after requesting authorisation from the Ministry of Finance. They will then be analysed by authorised certifiers to see if they comply with the rules.

According to the rules, online games are those whose "outcome is determined by the outcome of a random future event, based on a random generator of numbers, symbols, figures or objects defined in the rules system".

It remains forbidden to offer bets on online games in physical establishments, using equipment or other devices.

Payment of prizes

According to the rules, the platform must pay out at least 85 per cent of the amount won in prizes. The rules also stipulate that the game clearly explains how the punter can make a return and what the wagering requirements are.

The probability of winning the highest advertised prize, which is based on randomness, must materialise at least once in a hundred million plays - unless the game clearly states the real chances of the prize going to the punter.

Platforms must clearly state which games are available and the themes of each one. The punter cannot be forced to bet on a modality defined by the platform.

According to Conar's president, these rules are essential for punters to be aware of the real impact of the games.

"Both the novelty of the activity in the country, which is currently being regulated, and the recognised impact on the consumer, make it even more important to provide the consumer with correct and complete information about the nature of the activity (predictions with no certain winnings) and about the potential impacts of exaggerated engagement," he said.

Supervision

Monitoring and inspecting the platforms will be the responsibility of the Ministry of Finance's Prize and Betting Secretariat. The agency will be able to inspect the company's activities on site, in physical environments or remotely.

Platforms that fail to comply with the rules established by the government will be penalised. Companies that, among other things:

• offer fixed-odds betting without government authorisation;
• carry out unauthorised operations;
• prevent inspection by the Office of Prizes and Betting;
• provide incorrect data for inspection;
• advertising unauthorised operators.

In the event of non-compliance with the rules, companies may be warned or fined between 0.1% and 20% of their revenue. The amount of the fine per offence cannot exceed R$2 billion.

In the case of individuals, the fine will be between R$50,000 and R$2 billion. Penalties can also lead to partial or total suspension of activities for up to six months.

Responsible gaming

One of the ordinances published by the Treasury requires companies to create policies to prevent addiction and disorders that can be caused by gaming addiction.

Platforms will have to guarantee a ban on games for children and teenagers, collaborate with educational campaigns and draw up "responsible gaming" policies.

Industry celebrates

The sector welcomed the ordinances as a victory. The National Association of Games and Lotteries (ANJL) considers that the rules on online betting bring more security and clarity when it comes to advertising, sanctioning measures and inspection.

The association praises the regulations, which reinforce the ban on advertising to minors and adopt practices that, according to the organisation, are already followed by the sector.

According to ANJL, the market, with the help of Conar, has already developed rules to prevent the excessive promotion of betting, and the organisation supports the inspection and sanctioning actions planned for 2025, which include fines and personal punishments to guarantee the integrity of the sector.

"Now, with all the rules defined, companies will have the proper understanding for this period of adaptation to the regulations, which runs until 31 December this year. It's worth remembering that several bookmakers have already started the process of applying for authorisation with the SPA. Those that manage to meet all the requirements for submitting the application by 20 August will be able to operate under the regulations from 1 January," explains Plínio Lemos Jorge, president of ANJL.

By Cristiane Norberto and Rebeca Borges