The Ministry of Finance recently published five new regulations establishing rules for the fixed-odds betting market in Brazil. The measures include requirements for games to be certified and also create more rigorous monitoring and oversight mechanisms. The regulation aims to bring more security and transparency to the market, making operations safer for both operators and consumers.
The betting sector generated approximately R$12 billion in revenue in 2023, a significant increase compared to the R$7 billion in 2020. This growth is related to the increased popularity of sports betting, especially driven by the advancement of online platforms. This rapid growth caught the attention of authorities, who decided to strengthen regulations to ensure that operations are conducted safely and legally, protecting all those involved.
For Paula Martin, a lawyer specializing in Tax Law and partner at MBC Advogados, these new rules are an important milestone for the sector. “The regulations bring more clarity to the responsibilities of operators and ensure that the guidelines of the Ministry of Finance are followed. This creates a safer environment,” she states.
Consumer protection and game certification
Among the most significant changes is the requirement that all online games comply with the criteria of Ordinance SPA/MF No. 1,207/2024. Operators must ensure that bettors know exactly what their chances of winning are before placing a bet.
Furthermore, Ordinance SPA/MF No. 1,231/2024 requires operators to offer tools to limit the time and value of bets, helping to prevent gambling disorders and protect the mental health of bettors.
“The concern for health was taken seriously in these regulations. Creating limits on time and resources available for gambling helps prevent addiction, allowing for a gambling experience with harm reduction,” explains the lawyer.
Monitoring and punishments
The new rules also strengthen oversight of the sector. Decree SPA/MF No. 1,225/2024 defines how the government will monitor and ensure that bets are placed legally. Decree SPA/MF No. 1,233/2024 details the process for punishing companies that do not follow the new rules, with the application of fines and other sanctions depending on the severity of the infractions.
“This increased oversight is essential to bring more transparency to the market. Furthermore, it creates greater confidence among consumers, who can now be sure that they are investing in a legal and safe environment,” Paula emphasizes.
Finally, Ordinance SPA/MF No. 1,112/2024 establishes clear rules for the money collected from bets to be transferred to the National Treasury. Operators are required to follow a specific procedure for these transfers, ensuring that everything is done transparently. "These new rules are essential to maintain the financial balance of the sector, as well as to ensure that companies comply with tax laws," he points out.
Impact on the sector
With the implementation of the new regulations, the fixed-odds betting market in Brazil gains more robust regulation, aiming to bring greater security to both operators and players.
These regulations, in addition to establishing clear guidelines for operators, also aim to meet the growing demands for greater consumer protection. According to experts, it is important that operators strictly comply with the new rules to ensure that the market continues to grow. "Regulation is an important step, but compliance with the rules by everyone is fundamental for the sector not only to grow, but also to remain sustainable and safe," emphasizes the lawyer.
