Zona de Azar Brazil – Brazil: Prizes and Betting Secretariat Formalizes Transfers of Online Bets

Brazil.-  January 14, 2025 www.zonadeazar.com    The Prizes and Betting Secretariat of the Ministry of Finance published, this Monday (13), the SPA/MF Ordinance No. 1,902. It regulates the transfer of revenue from fixed-odds online bets . The new rules follow Law No. 13,756/2018 and its updates by Law No. 14,790/2023.

Operators must begin making monthly transfers starting January 1, 2025, allocating funds to legal beneficiaries. The guidelines include specific percentages for sports areas and civil entities.

Distribution of online betting resources

The ordinance, signed by Secretary Régis Dudena , defines the following destination for resources from online betting :

For sport (36%) :

7.30%: Entities of the National Sports System and Brazilian athletes.
2.20%: Brazilian Olympic Committee (COB).
1.30%: Brazilian Paralympic Committee (CPB).
0.70%: Brazilian Club Committee (CBC).
0.50%: Brazilian Confederation of School Sports (CBDE).
0.50%: Brazilian Confederation of University Sports (CBDU).
0.30%: Brazilian Paralympic Cycling Confederation (CBCP).

For civil entities (0.50%) :

0.20%: National Federation of APAEs (Fenapaes).
0.20%: National Federation of Pestalozzi Associations (Fenapestalozzi).
0.10%: Brazilian Red Cross.
The transfers from online bets will be proportional to the collection of bets and will follow specific regulations for sports competitions.

Rules for the use of rights and considerations

Sports entities will receive amounts in return for the use of names, images and other intangible rights of athletes. These terms will be adjusted in civil contracts. When events are not organized by Brazilian entities, the funds will be allocated to the national organization of the corresponding sport.

International competitions with the participation of Brazilian athletes will follow the rules of the international betting market. In cases without specific regulations, operators must negotiate directly with organizers.

Operators will be able to create private non-profit associations to manage transfers. These entities will be monitored by the Ministry of Finance and must adopt good governance and integrity practices.

The associations’ responsibilities include:

Track and operationalize transfers.
Be accountable to the public authorities and beneficiaries.
Provide solutions to disputes and prevent litigation.
Online betting transfers will begin on January 31, 2025. Operators must deposit the amounts into a specific account from January 1, ensuring compliance with the rule.

A public consultation will be opened in six months to evaluate and adjust the instruments for allocating resources. The Prizes and Betting Secretariat will also monitor irregularities.

The new regulation aims to ensure that the resources generated by online betting are applied transparently and with concrete benefits to society. This marks an important step in the management of iGaming in Brazil.

Ordinance on online betting in full
Published on: 13/01/2025 | Edition: 8 | Section: 1 | Page: 19

Agency: Ministry of Finance/Secretariat of Prizes and Bets

SPA/MF ORDINANCE No. 1,902, OF DECEMBER 5, 2024

Regulates art. 30, § 1º-A, item III, subitems “a” to “g” and “j”, and item VII, of Law No. 13,756, of December 12, 2018.

THE SECRETARY OF PRIZES AND BETS OF THE MINISTRY OF FINANCE, in the exercise of the powers conferred upon him by art. 55, paragraph I, item “d”, of Annex I of Decree No. 11,907, of January 30, 2024, and in view of the provisions of Law No. 13,756, of December 12, 2018, and Law No. 14,790, of December 29, 2023, resolves:

Art. 1 This Ordinance establishes procedures for the transfer of proceeds from the collection of the fixed-odds lottery betting modality to the legal recipients indicated in art. 30, § 1º-A, item III, subitems “a” to “g” and “j”, and item VII, of Law No. 13,756, of December 12, 2018.

Art. 2º The operating agents will transfer the proceeds from the collection, starting on January 1, 2025, of the fixed-odds lottery betting modality covered by this Ordinance directly to the legal beneficiaries, on a monthly basis, in accordance with §§ 2º and 8º of art. 30 of Law nº 13.756, of 2018.

Art. 3º The transfers to the entities of the National Sports System, in exchange for the use of their names, their sports nicknames, their images, their brands, their emblems, their anthems, their symbols and similar for the promotion and execution of the fixed-odds betting lottery , must be made:

I – by distributing resources proportionally to the revenue from the fixed-odds betting lottery obtained in each sports competition; and

II – in accordance with the competition regulations or similar instrument that governs the division of resources provided for in art. 30, § 1º-A, item III, letter “a”, of Law No. 13,756, of 2018.

§ 1º The competition regulations must expressly provide for the distribution of resources referred to in this article between the entities responsible for organizing the competition, the entities practicing the respective competition and their athletes, and the procedures and means of payment for making the transfers.

§ 2º The consideration for the use or assignment of image rights and other intangible rights of athletes for the promotion and execution of the fixed-odds betting lottery will be agreed upon in a civil contractual adjustment, in accordance with art. 87-A of Law No. 9,615, of March 24, 1998.

§ 3º When the participants of the sporting event are not part of an entity of the National Sports System and when the organization of the competition is not carried out by a Brazilian entity, the transfers will be fully reverted to the national organization administering the modality covered by the event, in accordance with art. 30, § 7º, item II of Law nº 13.756, of 2018.

§ 4 In the event that a national practice entity takes part in an international competition not organized by a Brazilian entity, the transfers must be made per match or game, individually, and will be divided equally between the national organization entity administering the sport and the national practice entities.

§ 5 In the case of foreign competitions with the participation of Brazilian athletes or clubs, the rules of the international competition will apply to the international betting market.

§ 6 In cases where there are no competition regulations, it will be up to the betting operator agent to seek out the competition organizers to verify the possibility of stipulating specific regulations on the subject, under penalty of the event being unable to be constituted as the object of fixed-odds bets.

§ 7 The investigation of irregularities related to competition regulations must be immediately reported to the Ministry of Sports, for the adoption of any applicable administrative measures.

Art. 4º The operating agents may establish a non-profit private law association to organize, systematize and rationalize the operationalization of the transfers referred to in this Ordinance.

§ 1º The association established on the basis of this article will act exclusively in the distribution and operationalization of transfers to legal beneficiaries.

§ 2º Operating agents may establish more than one association for the purposes set out in this Ordinance, with simultaneous membership of more than one association prohibited.

§ 3º With the act of affiliation, the association becomes the agent of the operating agent for the purposes of carrying out the transfers of the allocation of resources regulated in this Ordinance, as well as for the rendering of accounts before the Public Authorities and the legal beneficiaries, without prejudice to the liability of the betting operating agents.

Art. 5 The associations created on the basis of this Ordinance are responsible for:

I – receive, from the operating agents, the financial contributions provided for in art. 30, § 1º-A, item III, items “a” to “g” and “j”, and item VII, of Law No. 13,756, of 2018;

II – transfer the amounts due to the legal beneficiaries on a monthly basis, indicating the volume of bets collected in each competition subject to fixed-odds bets;

III – send monthly the data received from betting operators and those related to calculations and payments to the Prizes and Betting Secretariat;

IV – provide annual accounts of transfers made to the Public Authorities and legal beneficiaries;

V – adopt the best practices of integrity and corporate governance in the management of the resources covered by this Ordinance;

VI – submit to an annual independent audit;

VII – provide mechanisms for the consensual resolution of disputes and prevention of litigation to resolve issues related to the transfers provided for in this Ordinance;

VIII – report to the competent authorities any irregularities in the transfer of funds referred to in this Ordinance; and

IX – adopt other actions compatible with the scope of this Ordinance.

Art. 6 The associations created based on this Ordinance will be monitored and inspected by the Ministry of Finance.

Art. 7º The operating agents must begin monthly transfers from January 31, 2025.

§ 1 If the operating agent chooses to join, the amounts relating to the transfers regulated in this Ordinance must be provisioned from January 1, 2025, in a current account opened specifically for this purpose, until the association is fully operational, within a maximum period of 3 (three) months from the date of publication of this Ordinance, extendable for the same period, by act of the Prizes and Bets Secretariat of the Ministry of Finance.

§ 2º The documents proving the provisioning must be sent to the Prizes and Betting Secretariat, in accordance with SPA/MF Ordinance No. 722, of May 2, 2024.

§ 3º The already authorized betting operator agent must communicate the option referred to in § 1º to the Prizes and Betting Secretariat by January 31, 2025, electronically.

§ 4º The betting operator agent with an authorization request under analysis must communicate the option referred to in § 1º to the Prizes and Betting Secretariat within the period referred to in art. 14 of SPA/MF Ordinance No. 827, of May 21, 2024, electronically.

§ 5 If a specific association is not established within the period set out in § 1, the amounts corresponding to the transfers must be immediately sent to the legal recipients, in accordance with this Ordinance.

Art. 8 The Prizes and Betting Secretariat will disclose the data on the transfer of amounts referred to in art. 30, § 1º-A, item III, subitems “b” to “g” and “j”, and item VII, of Law No. 13,756, of 2018.

Art. 9 The allocations referred to in § 1º-A of art. 30 of Law No. 13,756, of 2018, consider the proceeds from the collection resulting from all types of fixed-odds bets, virtual or physical, which have as their object both real sports-themed events and virtual online gaming events.

Sole paragraph . In cases where the operating agent does not explore bets that have as their object real sporting events, there will be no distribution of amounts referred to in item “a” of section III of § 1º-A of art. 30 of Law No. 13,756, of 2018.

Art. 10 The betting operator agent must keep at the disposal of the Prizes and Betting Secretariat the documentation that proves the transfers to the legal beneficiaries directly for a period of 5 (five) years.

Art. 11 A public consultation will be instituted to evaluate and possibly restructure the instruments for allocating funds covered by this Ordinance within 6 (six) months of its publication.

Art. 12 This Ordinance shall come into force on the date of its publication.

REGIS ANDERSON DUDENA

Editó: @_fonta www.zonadeazar.com