Zona de Azar Brasil – Brazil: Treasury Revises Regulation on Bets and Prizes

Brazil – December 5, 2024 www.zonadeazar.com The Ministry of Finance is advancing the regulation of sports betting in Brazil. On Wednesday (4), a correction to Ordinance SPA/MF No. 1,857 was published in the Official Gazette of the Union.

This measure introduces adjustments related to the transfer of resources and bettor data, ensuring a smoother transition to the new regulatory model.

From January 1, 2025, only websites with the extension “.bet.br” will be allowed to operate in Brazil. This new rule exclusively applies to companies based in the country. The change marks a significant milestone for the sports betting market, which is currently dominated by operators located abroad.

What Changes with the Ministry of Finance’s Correction?

The ordinance changes pertain to the submission of financial and administrative information about bettors to the newly authorized operators. The primary modification involves identifying user funds in so-called “open bets.”

Key Adjustments:

• In Annex III, item 2, regarding open bets as of January 1, 2025, the responsibility for identifying funds shifts from the sending legal entity to the receiving legal entity.
• The same applies to Annex III, item 3, for open bets as of February 28, 2025. In this case, the responsibility moves from the sending legal entity to the receiving legal entity.
• In Annex III, item 6, the final date for recording funds allocated to the Student Financing Fund (Fies) and the National Fund for Public Calamities (Funcap) was corrected. The date changed from June 31 to June 30, 2025.

These adjustments aim to ensure greater clarity and efficiency in the transition to the new regulatory model.

The regulation of the betting market in Brazil promises several benefits, including generating tax revenue, protecting bettors, and promoting a safer and more transparent gaming environment.

Additionally, the new model seeks to end capital flight, as foreign companies have dominated the sector until now. By requiring operators to be based in the country, the government hopes to establish a solid foundation for oversight and tax collection.

To read the full ordinance, check the PDF or see it directly in the Official Gazette of the Union (DOU) Ministerio-da-Fazenda-retifica-resolución-sobre-apostas-e-premios-no-Brasil

Edited by: @_fonta www.zonadeazar.com