Through the Ordinance SPA/MF n. 827/2024, the Ministry of Finance announced that companies interested in exploiting betting in Brazil can now submit the authorization request through the SIGAP system of the Secretary of Prizes and Bets (SPA) (Art. 15, § 1º) and that, starting from 01/January/2025, such companiesit will be prohibited to operate in Brazil without authorization (Art. 24). Below, more information on what will be necessary to present:
/ What does the new Ordinance say?
Only companies authorized by the SPA of the Ministry of Finance can operate in the sports betting and online gaming (“bets”) sector (Article 3). The Ordinance specifies: (i) who can apply for authorization; (ii) the value, conditions, and criteria for obtaining this authorization; and (iii) the required documents for application.
Authorization can only be requested by:
(i) Legal entities established under Brazilian law, headquartered and managed in national territory, that comply with all obligations of Statute No. 13.756/2018 and Statute No. 14.790/2023 (Article 4th).
(ii) In the case of a national legal entity that is a subsidiary of a foreign company, established under Brazilian law, headquartered and managed in national territory, a Brazilian must hold at least 20% of the entity’s share capital (Article 4, § 1). A legal entity that is a branch, subsidiary, agency, or representation in Brazil of a legal entity headquartered abroad cannot obtain authorization (Article 4, § 2).
/ What documents must be presented?
To obtain authorization, a series of documents must be submitted, exhaustively listed in the Ordinance, relating to the fulfillment of legal qualification, fiscal and labor regularity, integrity, economic-financial qualification, and technical qualification criteria (Article 7 and following).
/ Is there a fee payment?
After verifying the criteria, companies must pay R$30 million and can operate up to three commercial brands for up to five years in Brazil (Article 5, I). This authorization cannot be transferred to third parties (Article 5, II).
