

Brazil’s Ministry of Finance publishes ordinance to regulate authorization proceeding for fixed-odds betting
Ordinance No. 827 sets out rules, conditions and the procedure for obtaining authorization to run betting operations in Brazil
Subjects
On May 21, 2024, The Ministry of Finance’s Secretariat of Prizes and Betting (Gaming Authority) published Ordinance No. 827/2024 to establish general rules for the authorization procedure, including minimum documentation and applicable deadlines.
The Ordinance stipulates that only legal entities incorporated under Brazilian law as limited liability companies (sociedade limitada) or corporations (sociedade anônima) with headquarters and administration within Brazil may apply for authorization to operate fixed-odds betting. This authorization will be granted for five year-term, subject to a payment of BRL 30 million and a limit of up to three commercial brands that can be exploited through electronic channels under the authorization. The deadline for existing legal entities in Brazil to comply with the new rules is December 31, 2024.
Documentation
The Ordinance specifies that the authorization request must be accompanied by documents that prove the legal qualification, tax and labor regularity, integrity, economic-financial qualification, and technical qualification of the company, as detailed below:
- Legal qualification: companies must present corporation documents and other forms and written statements, including identification of controllers, holders of qualified participation, administrators, and ultimate beneficiaries and registration of financial institutions or payment providers that will offer financial services to the operator.
- Fiscal and labor compliance: compliance with tax and labor obligations must be evidenced through the presentation of fiscal and labor certificates issued by federal, state, and municipal authorities.
- Integrity: verification of integrity for both the requesting legal entity and its controllers, holders of qualified participation, ultimate beneficiaries, administrators, and legal representatives is required. The Ordinance requires the submission of statements regarding a company/individual’s reputation and the lawful origin of resources, as well as clearance certificates, including criminal records and disciplinary history.
- Financial qualification: financial qualification should be demonstrated by providing a clearance certificate related to bankruptcy or judicial recovery, financial statements for the last two fiscal years, proof of a minimum financial reserve of BRL 5 million, full payment of the minimum share capital of BRL 30 million, and a minimum net worth of BRL 30 million, among other documents.
- Technical qualification: the Ordinance requires the betting operator to present a technical certificate for the system issued by a laboratory recognized by the Gaming Authority (or proof of protocol to require the certification); a statement confirming the adoption of internal control policies and procedures (e.g., anti-money laundering, responsible gaming, among others); evidence of knowledge and experience in gaming from at least one member of the control group; a description of the customer support structure, and proof of registration with Consumidor.gov, among other documents related to the operation and governance of the interested company.
The Ordinance also allows operators to request additional authorizations to operate more commercial brands beyond the prescribed limit of three per authorization. In such cases, the betting operator will need to make an additional payment for the authorization fee (BRL 30 million), establish an additional financial reserve (BRL 5 million), and contribute an additional BRL 15 million to the share capital.
The documentation related to the payment of the authorization fee, establishment of the financial reserve, full payment of the minimum share capital, minimum net worth, technical certificate for betting systems, and implementation of customer support can be submitted within 30 days after notification from the Gaming Authority at the end of the procedure.
Authorization procedure, denial and administrative appeal
Companies interested in exploiting fixed-odds betting in Brazil can now submit their request.
The Gaming Authority will have up to 150 days to review the documentation and decide on the request. After this period, the Authority will notify the interested company to make the payment for the authorization fee and provide any missing proof or a response denying the request.
The request may be denied if the submitted documents are deemed insufficient or fraudulent. The applicant has the right to file an administrative appeal within ten days of the Gaming Authority notifying them that their request has been denied.
Legal entities that submit the authorization request within 90 days from the publication of the Ordinance are guaranteed to have their authorization approval published by December 31, 2024, provided that all legal requirements are met. The Ordinance also stipulates that the authorized betting operator must keep all required documentation up to date during the validity period of the authorization, and the Gaming Authority may request proof of compliance at any time.
For further information on betting, please contact Mattos Filho’s Entertainment practice area.