Foto: Marcelo Camargo/Agência Brasil

The Ministry of Finance made an impactful decision, allowing operating agents to maintain their betting and data systems in centers located outside the country. The authorization was formalized through an ordinance from the Prizes and Betting Secretariat, published this Monday (6) in the Official Gazette of the Union (DOU).

This measure represents an exception in the process of regulating the sports betting and online gaming sector, promoted by the federal government. However, it is crucial to highlight that this authorization does not imply the approval of any operator, a step that will be addressed in the future.

According to SPA, in an official statement, this ordinance is part of a set of regulations designed to guarantee safer operations for fixed-odd betting agents in the national territory.

The objective is to provide more security to Brazilian citizens who participate in sports betting or online games.

To ensure effective supervision, operating agents must provide the secretariat with detailed data on bets, bettors, bettors’ portfolios, legal destinations and other information related to their operation.

Furthermore, the Prizes and Betting Secretariat will have the right to request additional information from operators at any time.

System outside the country: established criteria

Previously, the rules required betting systems to remain within the national territory. However, the new ordinance makes an exception, allowing these systems to be located abroad, as long as they meet specific criteria.

Operators must be established in countries that have an International Legal Cooperation Agreement with Brazil.

This covers both civil and criminal matters. Furthermore, they must comply with the provisions of the General Data Protection Law (LGPD).

The holder’s prior consent will be required for the international transfer of personal data. The Finance must have secure and unrestricted access to operation systems and data, both remotely and in person.

Another requirement is the presentation of an Information Technology (IT) business continuity plan by operating agents, to deal with critical situations that could put the operation and data at risk.

This plan must include mapping likely loss scenarios, analysis and assessment of risks, prevention and mitigation actions, and designation of those responsible. Additionally, the data center used must be ISO 27001 certified.

Treasury established a transitional period of six months for bookmakers

The law that regulates the betting market was sanctioned at the end of 2023. However, only at the end of April, the ministry appointed lawyer Regis Dudena as head of the Prizes and Bets Secretariat.

At the moment, the Prizes and Betting Secretariat is concentrating its efforts on regulation that will regulate the rules and conditions for obtaining authorization to explore the market in Brazil.

This process will involve the evaluation of interested legal entities, which will include integrity and prevention policies on match-fixing and other fraud. More than 130 companies have already expressed interest in operating in the Brazilian market.

The law established a period of no less than six months for legal entities operating in Brazil to comply with legal and regulatory provisions.