BRAZIL Law and Practice Contributed by: Luiz Felipe Maia, Flavio Augusto Picchi and Débora Cunha Romanov, Maia Yoshiyasu Advogados – MYLAW
Recent and Forthcoming Changes 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. Normative Ordinance No 1,330/2023 establishes con- ditions for controlling partners or shareholders, and other individuals comprising the corporate structure, that may prevent a legal entity from obtaining a licence to operate fixed-odds betting activities. Ordinance SPA/MF No 827/2024 determines that the licence shall be subject to integrity requirements, mini- mum professional experience and formal education of managers. Administrators, partners, officers, managers and employees of the operating agent are also prevented, directly or indirectly, from betting (Article 26, II of Law No 14,790/2023). 5. Land-Based Gambling 5.1 Premises Licensing Land-based gambling is restricted to: • federal and state lotteries; • fixed-odds betting; • horse race betting at racetracks and agencies; • poker rooms; and • future LOTEX and sports-betting points of sale. Premises licensing varies according to the gambling modality. Caixa Econômica Federal’s lottery agen- cies are concessions granted by the federal govern- ment, and the premises licences are granted by Caixa Econômica Federal . Fixed-odds betting premises are subject to the condi- tions described in Law No 14,790/2023. At the time of the application for the licence, the applying entity must identify whether it intends to offer bets in virtual or physical modalities, either separately or jointly, in accordance with Article 14 of Law No 14,790/2023.
Horse-race entities must apply for their agents’ and agencies’ licences before the Ministry of Agriculture, Livestock and Food Supply. The horse-race entity remains entirely responsible for any and all acts of the agent. The agent’s licence is granted to the agent (an individual or a legal entity) to facilitate wagering only at the specified venue.
6. Online Gambling 6.1 B2C Licences
B2C licences are regulated by Ordinance SPA/MF No 827/2024 for the commercial operation of fixed-odds lotteries by private economic agents throughout the national territory. Online games events are consid- ered as fixed-odds betting, as per Article 3 of Law No 14,790/2023. 6.2 B2B Licences (Suppliers, Software, Etc) There are currently no regulations on B2B licences at the federal level. 6.3 Affiliates Rules applicable to affiliates are described in Ordi- nance SPA/MF No 1,231/2024. As per Article 22, com- munication, advertising and marketing actions carried out by affiliates are considered part of the actions of the betting operator, and the operators are required to ensure: • that their affiliates comply with applicable laws; • the establishment of written contracts with their affiliates, in Portuguese, that explicitly specify whether or not subcontracting is allowed, in which case the operator’s responsibility cannot be waived; • the affiliates’ duty to comply with legal, regulatory and self-regulatory rules regarding communication, advertising and marketing; and • the criteria for compensating affiliates. 6.4 White Labels According to Ordinance SPA/MF No 827/2024, a licence will be granted considering the upper limit of three brands that can be exploited by the legal entity via its electronic channels. The licensed operating agent will be liable for all brands nominated in its
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