SPA/MF Ordinance No. 827, of May 21, 2024, recently released by the Secretariat of Prizes and Bets (SPA), represents a significant advance for the Brazilian market, bringing a series of measures that aim to improve regulation and curb illegal practices.
The document, published in the Official Gazette of the Union on May 22, was received with enthusiasm by betting companies, who see it as an opportunity to ensure greater transparency and security in betting operations.
According to the National Association of Games and Lotteries, “all bettors will know how to distinguish serious companies, which operate transparently and legally, from irregular ones”.
One of the main implications of the ordinance is the requirement to pay a grant worth R$30 million to the Union, as a condition for companies to be able to operate legally for a period of five years.
This measure not only legitimizes the companies’ operations, but also establishes a barrier for illegal operators to operate in the national territory.
Furthermore, the ordinance defines that each company will be able to explore up to three different brands, expanding the possibilities of operation in the betting market.
Prevention and strict requirements for the betting industry
Another crucial point is the establishment of strict requirements for companies in the sector. This includes the implementation of policies to prevent money laundering and match-fixing.
It is also necessary to maintain headquarters in the country and meet criteria related to legal qualification, tax and labor regularity, suitability, economic-financial and technical qualification.
With the entry into force of the ordinance, companies can now begin the licensing process. They are guaranteed that those who apply within the next 90 days will have their licenses issued by the end of the year.
But, other players need to wait 180 days. Therefore, the measure speeds up the process and allows legally established companies to start operating as quickly as possible.
