BRAZIL Law and Practice Contributed by: Luiz Felipe Maia, Flavio Augusto Picchi and Débora Cunha Romanov, Maia Yoshiyasu Advogados – MYLAW
crime when compared to a criminal violation of Bra- zilian law. On the other hand, “skill-based games” are defined in Article 2, VIII of Ordinance SPA/MF No 1,207/2024 as “a category of game in which the outcome is determined primarily or predominantly by the mental or motor skills of the participant, such as dexterity, expertise, intelligence, competence and knowledge, even though there may be non-prevalent random events”. This is the case with poker, for instance, and these games are legal in Brazil and do not fall under the category of virtual events in online fixed-odds bet- ting. 3.3 Definition of Land-Based Gambling The Misdemeanours Law dates from 1941 and does not differentiate between online and land-based activ- ities. Decree No 9,327/2018, which regulates LOTEX, defines physical bets as those made by the client upon the purchase of a printed ticket, and virtual bets as those made by the client via electronic channels. Law No 13,756/2018, which introduced fixed-odds sports betting as a lottery modality, sets forth that this can be offered by both land-based and online opera- tors. Law No 14,790/2023 and the ordinances issued by the SPA regulate fixed-odds sports betting. 3.4 Definition of Online Gambling See 3.3 Definition of Land-Based Gambling . 3.5 Key Offences According to Article 50 of the Misdemeanours Law, a person is guilty of illegal betting if they establish or explore games of chance, an offence punishable with imprisonment for between three months and a year, and with a fine. Anyone found to be taking part in a game of chance, even via the internet or any other means of communication, as a cashier or bettor, is subject to a fine ranging from BRL2,000 to BRL200,000. Currently, all prosecution cases related to Article 50 are suspended until the Brazilian Supreme Court judg- es Extraordinary Appeal No 966,177. The scope of
that judgment will determine whether Article 50 of the Misdemeanours Law complies with the constitutional precepts concerning free enterprise and fundamental freedoms, as provided for in Articles 1 (IV), 5 (XLI) and 170 of the Federal Constitution. 3.6 Penalties for Unlawful Gambling An unlawful gambling operator can be penalised with imprisonment for between three months and a year, and with a fine. Players and punters involved with unlawful gambling are subject to fines ranging between BRL2,000 and BRL200,000. In 2024, Decree No 11,907/2024 established the SPA within the organisational structure of the MF, as well as its responsibilities for licensing, permitting, regulating, monitoring, supervising, overseeing and sanctioning fixed-odds betting, lotteries and other activities. The Ministry of Agriculture, Livestock and Food Sup- ply is responsible for the regulation of horse race bet- ting. 4.2 Regulatory Approach Regulation tends to be prescriptive. Consumer and data protection rules, on the other hand, are more risk- based, with the operator being held liable for the neg- ative effects on consumers and data subjects, even if the prescriptive regulations have been complied with. 4.3 Types of Licences 4. Licensing and Regulatory Framework 4.1 Regulatory Authority Legal entities that are established under Brazilian laws, have headquarters and management located within the national territory, and meet all the require - ments set forth in applicable laws will be eligible for a licence to operate fixed-odds betting activities. See 4.4 Availability of Licences , 4.5 Duration of Licences and 4.6 Application Requirements for further details in respect of sports betting and horse race betting.
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