BRAZIL Law and Practice Contributed by: Luiz Felipe Maia, Flavio Augusto Picchi and Débora Cunha Romanov, Maia Yoshiyasu Advogados – MYLAW
bingo halls are operating in the country, but, according to SECAP’s understanding, these operations would need to have been previously approved by the Minis- try of the Economy. Casinos Casinos are prohibited in Brazil. Article 14, paragraph 2 of Law No 14,790/2023 only allows fixed-odds bets that involve “online game events” (casinos) to be offered through virtual platforms. Lotteries Caixa Econômica Federal runs the federal lottery and has a network of over 13,500 agencies. Caixa Econômica Federal was granted control of the fed- eral lottery following Decree No 50,954/1961, which cancelled all lottery licences granted to the private sector. State lotteries run by member states and the Federal District are legislated at subnational level, and can therefore be subject to diverse legal frameworks. Poker Poker has been recognised as a sport by the Secre- tariat of Sports. 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. Gaming Machines Gaming machines are prohibited in Brazil. The general prohibition on gambling in Brazil is set forth in Article 50 of the Misdemeanours Law, which imposes imprisonment for three months to one year and a fine for those who establish or exploit games of chance in a public place, or a place accessible to the public, by means of the payment of an entry fee or otherwise. The federal lottery, operated by the MF, is regulated by several laws and decrees. 3. Legislative Framework 3.1 Key Legislation
LOTEX (the instant lottery) was created by Law No 13,155/2015 and amended by Law No 13,756/2018, and is regulated by Decree No 9,327/2018. Decree No 11,675/2023 also regulates LOTEX and allows the MF to authorise, on a temporary basis, direct operation by Caixa Econômica Federal for a specified period or until the commencement of indirect operation by the winning operator of the future concession bidding process. Horse-race betting is regulated by Law No 7,291/1984 and Decree No 96,993/1988. 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 MF and SPA. Law No 14,455/2022 authorised the federal executive power to create health and tourism lotteries. 3.2 Definition of Gambling In Brazil, gambling does not have a legal definition. In fact, the word “gambling” does not translate perfectly into Portuguese. It can mean a bet or a game involving a consideration, a prize and chance. A “bet” is defined in Article 2, I of Law 14,790/2023 as “an act through which a certain amount is placed at risk with the expectation of obtaining a prize”. An “online game” is defined, in item VIII, as an “electronic mechanism that enables virtual betting on a game in which the outcome is determined by the result of a future random event, based on a random number, symbol, figure or object generator as defined in the system’s rules”. Article 50 of the Misdemeanours Law establishes that the operation of illegal games of chance in a public place, or in a place available to the public, is subject to imprisonment for between three months and one year and to a fine. Games of chance are treated as misdemeanours, which are recognised by law as offences punishable by minor penalties (Article 61 of Law No 9,099/1995). In other words, a misdemeanour is a less offensive
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