Since last Thursday, fixed-odds betting operators authorized to operate in Brazil by SPA/MF - the Ministry of Finance's Secretariat for Prizes and Betting - will have to comply with a number of requirements in order to operate and consumers should keep an eye on the news.
Among them, the operation of the sites must be done exclusively by "bet.br" domains - during a certain period the "com.br" domains will still work, but without being able to offer bets. Another point is the need to have the head office and partners in Brazil, making it possible for the SPA/MF to inspect the site, as well as guaranteeing compliance with the regulations, should penalties be imposed.
Policies to prevent money laundering and terrorist financing, encourage responsible gambling and combat match-fixing are also among the new rules.
Advertising campaigns must not encourage excessive gambling and must include warnings about risks and age restrictions, as well as significant restrictions for people at risk of addiction, such as individuals diagnosed with gambling-related disorders (ludopathy).
With the new regulations, Brazil has adopted a detailed and comprehensive system for sports betting, balancing the actions of operators with consumer protection.
"If well implemented, regulation can turn the country into a benchmark in the sector, attracting investors and increasing tax collection, as well as promoting a safer and more responsible environment," says Thiago do Amaral Santos, a partner at Barcellos Tucunduva Advogados and a specialist in Means of Payment and Bets.
It is worth remembering that failure to comply with the rules can lead to fines of up to R$2 billion, partial or total suspension of activities, revocation of authorization, among others.
"However, we must wait for operators and consumers to adapt. Platforms will need to invest in compliance and responsible practices, while punters must familiarize themselves with the regulated environment. The future of the market will depend on everyone's ability to adjust to this new reality," says the lawyer.
Here's a look at the trends and impacts for both betting operators and bettors in the new year.
1) Transaction process and types of accounts
According to Thiago do Amaral Santos, a specialist in means of payment, the new legislation requires that only financial and payment institutions authorized by the Central Bank can process transactions, which will facilitate the monitoring of bets, with the possibility of identifying fraud and adopting measures to prevent money laundering.
Operators will have three types of accounts:
- Transactional, used exclusively for deposits and withdrawals by players, linked to each contracted institution;
- Owner, for the financial management of the company; and
- A reserve, with a mandatory R$5 million in government bonds, designed to guarantee the payment of bets in the event of insolvency or lack of liquidity (opened exclusively at a financial institution).
2) Account balances and payment restrictions
The balance of the transactional accounts must correspond to the amount owed to users. Surpluses can be transferred to the proprietary account. "If the balance is insufficient, the bookmaker must transfer funds from the proprietary account to the transactional account," explains Amaral.
There will be restrictions on payment methods, only pix, TED and debit and prepaid cards will be allowed, and the use of credit cards, boleto bancário, cash, checks and cryptocurrencies is prohibited.
Transfers from third-party accounts or those that have not been previously registered on the platform (website or app) by the bettor themselves are also prohibited.
"This implies a restriction on the use of the pix. For example, if an institution receives the funds from an unregistered account, even if it is owned by the punter, the betting operator must immediately arrange for the funds to be returned to that account," explains the lawyer.
"With regard to prohibiting the use of other means of payment, the aim is to adopt measures to curb fraud and other illegal acts, including money laundering."
3) A ban on lending and greater security for punters
From 2025, companies will no longer be able to offer credit for bets and entry bonuses. "This avoids problems with excessive betting and over-indebtedness. Operators are also prohibited from entering into any kind of agreement to facilitate access to credit for gamblers," adds Amaral.
The bets must be paid out within 120 minutes, and the bettor can choose, at his sole discretion, to keep the funds in his account for placing new bets and the bettor will have access to the history of payment transactions made over the last 36 months.
With these restrictions, the lawyer points out that over-indebtedness on the part of bettors is avoided. In addition, "bettors now have greater security that they will receive the funds related to the bets, as well as having access to the history of the transactions made," he concludes.