The regulation of fixed odds betting in Brazil, popularly known as “bets”, has developed significantly in recent months, with the aim of structuring a sector that generates billions of reais and directly impacts the economy and the consumption behavior of the Brazilian population. Law No. 14.790/2023 (“Law 14.790/23”) and subsequent ordinances from the Ministry of Finance established the legal foundations for the operation of these activities, with an emphasis on consumer protection, anti-money laundering and the promotion of responsible gambling.

In order to operate legally in the country, fixed odds betting operators must obtain authorization from the Ministry of Finance's Secretariat of Prizes and Betting, through the Betting Management System (SIGAP). Under the terms of Ordinance SPA/MF No. 827/2024, the request for authorization is conditional on proof of:

• Legal qualifications;
• Tax and labor compliance;
• Suitability;
• Economic and financial qualification; and
• Technical qualification.

Once authorized, operators must implement governance policies, internal controls and compliance procedures, under the terms of Law 14.790/23, covering:

• customer service and ombudsman;
• prevention of money laundering, terrorist financing and the proliferation of weapons of mass destruction;
• responsible gambling and prevention of pathological gambling disorders; and
• measures aimed at betting integrity and the prevention of match-fixing and other fraud.

In the legislative and investigative field, we highlight the establishment of the Parliamentary Commission of Inquiry into Sports Betting (“CPI das Bets”) in the Federal Senate in November 2024. The CPI has been investigating evidence of unlawful practices in the sector, such as money laundering, manipulation of algorithms and lack of transparency in advertising contracts with digital influencers. The commission's partial conclusions highlight the need to intensify regulatory monitoring and mechanisms to hold operators to account.

As a result of the work of the CPI das Bets, the National Congress has made progress in the discussion on betting advertising. The Senate approved a bill restricting the participation of athletes, artists, communicators, influencers and authorities in bookmakers' advertising campaigns. The measure seeks to contain the marketing appeal aimed at vulnerable audiences, especially young people and low-income populations, reducing the risk of over-indebtedness and the encouragement of compulsive gambling behavior, which is already recognized as a public health issue.

The consolidation of the betting regulatory framework in Brazil represents an important step towards ensuring greater legal predictability for companies in the sector, as well as strengthening consumer protection and integrity and compliance instruments. These regulatory advances are helping consolidate the betting market as a viable business opportunity in Brazil.

VPBG Advogados has a team specialized in regulatory law and is prepared to advise companies wishing to operate in this sector. For more information, please contact us.