Brazil introduces new ordinance to regulate revenue from online betting
On January 13, 2025, the Secretariat for Prizes and Betting (SPA) of Brazil's Ministry of Finance published Ordinance SPA/MF No. 1,902, detailing procedures for the allocation of revenue generated from fixed-odds online betting. The ordinance aligns with Law No. 13,756/2018 and its amendment by Law No. 14,790/2023.
The new regulations require betting operators to distribute collected revenues directly to legally designated beneficiaries starting January 1, 2025. Monthly transfers must adhere to guidelines outlined in Article 30 of Law No. 13,756.
Sports entities benefiting from these revenues must use the funds for purposes such as supporting athletes, maintaining facilities, and promoting competitions. Revenue allocation will be proportional to the betting activity associated with each sporting event, as stipulated in competition regulations.
The ordinance also addresses international competitions, ensuring fair revenue distribution for events involving Brazilian athletes or clubs. In such cases, operators must follow either Brazilian or international competition rules, depending on the event's jurisdiction.
Operators are encouraged to form nonprofit associations to streamline the process of managing and disbursing funds. These associations will oversee the financial operations, ensure compliance with governance standards, and submit to annual independent audits.
Additionally, operators must maintain transparent records for five years and provide evidence of revenue transfers to both the SPA and beneficiaries. The ordinance mandates that any irregularities identified must be reported to the Ministry of Sport for administrative action.
The ordinance specifies provisions for cases without competition regulations, requiring operators to engage with event organizers to establish appropriate rules. Failure to do so may disqualify such events from being part of fixed-odds betting.
Monthly transfers to beneficiaries are set to begin on January 31, 2025. Operators opting to join associations must provision funds in dedicated accounts until the associations are fully operational.
The SPA will monitor the implementation of these rules and evaluate their effectiveness through a public consultation within six months of the ordinance's publication.
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