Ordinance regulating payment transactions for fixed-odds betting issued in Brazil

On April 18, 2024, the Brazilian Ministry of Finance’s Department of Prizes and Betting published Ordinance No. 615/2024 to establish general rules for betting operators to observe when carrying out payment transactions in Brazil. The ordinance regulates the entire process of payments for betting.

Transactions in which players cash in and cash out, as well as payouts by operators, must be conducted exclusively via an electronic transfer between the player’s account and the operator’s account. Both accounts must be held with financial or payment institutions authorized to operate by the Brazilian Central Bank (BCB).

For the purpose of the Ordinance, ‘electronic transfers’ contemplate instant payments (PIX), standard electronic transfers (TED), debit or prepaid cards, and book transfers. Operators must not accept credit cards, virtual assets, bank slips (boletos), and third-party payments (i.e., not from the player), among others.

Ordinance No. 615/2024 also establishes the following:

• Transactional accounts for operators: operators must hold a transactional account to receive and hold the financial sums related to the bets that players place. Any financial resources held in this account will be deemed as a separate asset that cannot be confused with the operator’s financial resources.
• Graphic accounts: operators must make an account (conta gráfica) available to each player that allows them to manage and keep track of their betting operations and financial resources.
• Payment of prizes: operators may only pay out prizes via electronic transfers to a previously registered bank or payment account, which the player must hold with a financial or payment institution incorporated and managed in Brazil. At the player’s sole discretion, prize payouts can be kept in the operator’s transactional account for the player to use in future bets.
• Maximum payment period: the ordinance sets a 120-minute deadline for operators to pay out prizes owed to players. The deadline is counted from the end of the real-world sports event or virtual online gaming session linked to the bets (as the case may be);
• Liquidity management: operators must implement policies to manage liquidity risks. The ordinance also requires operators to establish a minimum financial reserve of BRL 5,000,000 (approx. USD 950,000) to guarantee payouts of prizes;
• Operators’ agreements with financial or payment institutions: the agreements that the operator and financial or payment institution enter into must establish the parties’ obligations in order that they comply with the provisions of Ordinance No. 615/2024.

The ordinance regulates Federal Law No. 14,790/2023, which prohibits financial and payment institutions and payment arrangements from allowing transactions on behalf of operators not authorized to operate in Brazil. The ordinance establishes that this prohibition will take effect six months from the date the Department of Prizes and Betting publishes specific regulations on the rules and conditions for obtaining authorization to run commercial fixed-odds betting operations (yet to be published).

Two more ordinances are expected to be published by the end of April. For more information on the Ministry of Finance’s Regulatory Agenda, please see our memo here.

For further information on betting, please contact Mattos Filho’s Banking & Financial Services and Entertainment practice areas.