BRAZIL Law and Practice Contributed by: Luiz Felipe Maia, Flavio Augusto Picchi and Débora Cunha Romanov, Maia Yoshiyasu Advogados – MYLAW
Lotteries The state-owned Caixa Econômica Federal currently runs the federal lottery and has recently launched a website to sell lottery tickets. All state-owned lotteries operating in Brazil are also authorised to offer their products online. Poker Poker has been recognised as a sport by the former Ministry of Sports, now the Secretariat of Sports, an agency of the Ministry of Citizenship. As a skill-based game, online poker is permitted. According to the sole paragraph of Article 3, I of Ordinance SPA/MF No 1,207/2024, skill-based games do not fall under the category of virtual events in online fixed-odds betting. Fantasy Sports Article 49 of Law 14,790/2023 expressly states that the development or provision of services related to fantasy sports does not constitute the operation of a lottery modality, commercial promotion or fixed-odds betting, and is exempt from requiring public authori- sation. Certain provisions of Law No 14,790/2023 are, how- ever, applicable to fantasy sports, such as Article 31 regarding the taxation of net prizes obtained by bet- tors from fixed-odds lotteries, which are subject to individual income tax ( imposto de renda da pessoa física IRPF) at a rate of 15%. The sole paragraph of Article 3 of Ordinance SPA/MF 1,207/2024 stipulates that fantasy sports do not fall under the category of virtual events in online fixed-odds betting. Social Gaming Social gaming is not regulated in Brazil. It is permitted provided that chance is not the sole or preponder- ant factor in determining the final result of the game or that the players are not entitled to win prizes with monetary value. Offshore Gambling Offering Article 7 of Law No 14,790/2023 stipulates that only legal entities established under Brazilian law with headquarters and management located within the national territory, and which meet the requirements set forth in the regulations issued by the SPA, will be eli- gible for authorisation to operate fixed-odds betting.
In May 2024, Ordinance SPA/MF No 827/2024 set out an adjustment period for legal entities that were oper- ating in Brazil at the time of the publication of Law No 14,790/2023, until 31 December 2024, to comply with the applicable legal and regulatory provisions regard- ing fixed-odds betting lotteries. Later, Article 2 of Ordinance SPA/MF No 1,475/2024, issued in September 2024, set out that only legal enti- ties that have applied for a licence until 17 Septem- ber 2024 are considered to be within the adjustment period starting from 1 October 2024 and finishing on 31 December 2024. 2.2 Land-Based Gambling Sports Betting Land-based fixed-odds sports betting was legalised by Law No 13,756/2018 and is regulated by Law No 14,790/2023, as well as by the ordinances issued by the SPA and the Ministry of Finance (MF). Betting exchange is allowed and, as per Article 49 of Ordi- nance SPA/MF 1,231/2024, the betting operator is responsible for: • providing, executing and settling the bets; • crediting the prize amount to the winner’s account; and • debiting it from the loser’s account. Horse Race Betting Horse-race betting is regulated by Law No 7,291/1984 and Decree No 96,993/1988. Horse-race wagering is restricted to non-profit entities that own the racetracks and are duly authorised by the Ministry of Agricul- ture, Livestock and Food Supply. These entities may appoint agents to facilitate wagering on their behalf and can also hire private suppliers, which are not sub- ject to licensing or any specific regulation. Bingo Commercial bingos are prohibited in Brazil. In 2015, Law No 13,019/2014 was amended by Law No 13,204/2015 to include Article 84-B, which states that civil society organisations will be entitled to distribute, or promise to distribute, prizes – through sweepstakes, gift cards, competitions or similar operations – in order to raise additional resources for their maintenance or costs. Based on this provision, several “non-profit”
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