BRAZIL Law and Practice Contributed by: Luiz Felipe Maia, Flavio Augusto Picchi and Débora Cunha Romanov, Maia Yoshiyasu Advogados – MYLAW
4.10 Personal Licensing Types of Authorisations and Licences
public servants or service providers working in the part of the MF responsible for granting the authori- sations referred to in applicable laws; • they have a prohibition under special law; • they have a conviction for: (a) administrative misconduct; (b) bankruptcy; (c) tax evasion; (d) malfeasance; (e) active or passive corruption; (f) extortion; (g) embezzlement; (h) offences against the popular economy; (i) offences against public faith; (j) offences against intellectual property; or (k) offences against the national financial system; or • they have a conviction with a criminal sentence that temporarily or permanently bars access to public office, by a final judicial decision. If the licence is granted, the operating agent must pay a licence fee in the amount of BRL30 million. Ongoing Annual Fees Law No 14,790/2023 amended Article 32 of Law No 13,756/2018 to establish the monthly gaming monitor- ing fee for the commercial operation of a fixed-odds lottery. The monthly gaming monitoring fee is trig- gered by the regular exercise of regulatory authority and is applied monthly to the proceeds collected after deducting the amount paid in prizes and the amount of income tax applicable to the prizes. Ongoing Requirements No personal authorisations or licences are currently available for fixed-odds betting activities. Personal Sanctions Personal sanctions can be applied solely or jointly with financial penalties, and include disqualification from acting as a director or administrator, as well as from holding positions in the bodies provided for in the by-laws or in the corporate charter of a legal person that operates any type of lottery, for a maximum peri- od of 20 years (Law No 14,790/2023, Article 41, IX).
According to Article 7, I of Normative Ordinance No 1,330/2023 and Law No 14,790/2023, licences will not be granted to individuals. Only legal entities that are established under Brazilian laws, have headquarters and management located within the national territory, and that meet all the requirements set forth in applica- ble laws will be eligible for a licence to operate fixed- Application is subject to the confirmation of reputa- tion and knowledge of the applicant entity’s control- lers and administrators, as per Article 11 of Law No 14,790/2023. Key application requirements for direc- tors, owners and senior management are established in Ordinance SPA No 827/2024 and involve: • integrity requirements; • a minimum of three years of professional experi- ence in a field related to their role as administra- tors; and • a higher education degree in an area compatible with the position to be held. odds betting activities. Application Process According to Article 7 of Normative Ordinance No 1,330/2023, a licence will not be granted to legal entities whose partners or controlling shareholders, control agreement members, managers and other individuals composing the corporate structure meet the following criteria: • they hold a direct or indirect participation in a foot- ball joint stock company or a professional sports organisation; • they act as professional athletes, members of technical teams, referees or managers of Brazilian sports teams; • they are suspended from bidding and contract- ing with the Public Administration or have been declared unfit by the Public Administration at the federal, state or municipal level, or by the Federal District, and where the reasons for the punish- ment continue to apply (or until rehabilitation is achieved); • they are the spouses, partners or relatives, either by blood or by affinity, up to the third degree, of
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