Ordinance SPA/MF No. 827: Regulations For Commercial Operations Of Fixed-Odds Betting In Brazil

Brazil is setting new regulations for its growing betting market. On May 21st, 2024, the country’s Ministry of Finance issued the Ordinance SPA/MF No. 827, aiming to regulate and standardize commercial operations of fixed-odds betting in Brazil.

Also Read: Uncovering Brazil’s Normative Ordinance No. 615 for Betting Operations

Ordinance SPA/MF No. 827: Uncovering The Key Points

The ordinance ensures businesses comply with legal and financial requirements that maintain integrity and public trust in the Brazilian betting industry.

Some of the key points of the Ordinance SPA/MF No. 827 include:

1. Operations Regime

The fixed-odds lottery betting commercial operation is restricted to legal entities priorly authorized by the Secretary Of Prized And Bets. Eligibility criteria for authorization include:

1. Payment transactions: Being constituted under Brazilian law.
2. Having headquarters and administration in Brazil.
3. Meeting the requirements of relevant laws and regulations.

It’s important to note that authorization may be reviewed with mergers, splits, incorporations, or changes in direct or indirect control of the authorized entity.

2. Authorization Criteria

Documents required for obtaining authorization include proof of:

1. Legal Qualification: Authorization request, identification forms, and financial service provider details.
2. Fiscal and Labor Regularity: Certificates from tax and labor authorities.
3. Integrity: Declarations and negative certificates for corruption, fraud, and other crimes.
4. Economic-Financial Qualification: Financial statements, proof of financial reserves, and capitalization.
5. Technical Qualification: Technical certificate for the betting system and adherence to policies on money laundering prevention, responsible gambling, and others.

Additional Documentation may be requested during the evaluation process.

3. Authorization, Denial, Administrative Appeals & Termination

Encompasses the following information:

1. The process for obtaining authorization through the SIGAP system, payment of fees, and submission of all necessary documents. Authorization can be denied if requirements are not met or if fraudulent information is found.
2. The steps to appeal a denied application.
3. Conditions under which authorization may be terminated, such as expiration, revocation, annulment, or voluntary renunciation by the operator.

4. Final and Transitional Provisions

Encompasses the following regulations:

1. Authorized operators must keep their documentation updated and report changes to the Ministry of Finance within ten days.
2. Entities applying within 90 days of the ordinance publication will receive priority in processing and approval by December 31, 2024.
3. Establishes a compliance period until December 31, 2024, for entities already in operation.

Notifications will be considered delivered six days after being sent by the Ministry of Finance.

The Ordinance SPA MF No. 827 has come into effect on its publication date. Businesses aiming at the Brazilian betting market should be aware of the country’s regulations to successfully operate in the region.

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