Brazil: Government issues new ordinances to regulate online gambling

The Prize and Betting Secretariat of the Brazilian Ministry of Finance has published two new ordinances for the regulation of the Brazilian betting market. 

The first of these, published on July 31, is number 1,212, establishing the guidelines for transferring fixed odds lottery proceeds. The following day, the agency published ordinance 1,231, which deals with responsible gaming practices, advertising, and marketing and regulates the rights and duties of players and fixed odds betting operators.

Ordinance 1.212 defines that the gaming house will transfer the funds to the legal beneficiaries through the National Treasury Single Account. In addition, the transfer must be made using a Federal Revenue Collection Document (DARF).

The allocations take into account the collection of all types of fixed wagers, whether virtual or physical, on both real sporting events and virtual online gambling events. The full text can be accessed here.

Some of the items in Ordinance 1212 are:

• The bookmaker is responsible for correctly filling out the revenue code in the DARF;
• The bookmaker who fails to pass on revenues following the provisions of the Ordinance is subject to civil, administrative, and criminal liability;
• In the case of forfeited prizes, where the bettor loses the right to receive his prize or to request its return, the prize amounts shall be paid into the Single Account of the National Treasury;
• The betting operator must keep at the disposal of the Prize and Betting Secretariat, for 5 (five) years, the supporting documentation of the transfers to the National Treasury and the direct legal beneficiaries;
• The allocations take into account revenues from all types of fixed odds betting, virtual or physical, involving both real sporting events and virtual online gambling events;
• The decree enters into force on the date of its publication, taking effect on January 1, 2025. 

For its part, ordinance 1,231 establishes that operators must carry out educational campaigns with their consumers about the risks of addiction and ensure that minors do not access the platforms.

Companies will have to guide users on playing responsibly in the website's "responsible gambling" section. Gamblers should also have the option to set spending limits and request self-exclusion from the platform for a fixed or indefinite period.

The following is a summary of some of the main points of the new ordinance:

• The betting operator must inform the bettor, at the time of registration, as well as at the time of access to the betting system, of the risks of addiction, pathological gambling disorders, and loss of amounts wagered.
• The companies must indicate care and advocacy channels for bettors, which must be accessible through the Internet, including advising people at risk of addiction and pathological gambling disorders and their families on how to obtain help and treatment.
• If the bettor requests an increase of the prudential limits or the suspension of the rest periods, the changes can only be applied by the bookmaker twenty-four hours after the request, provided that it does not violate the responsible gaming policy.
• Communications, advertising, and marketing actions of the fixed odds lottery must be guided by social responsibility and the promotion of responsible gambling awareness, with a view to collective security and the fight against illegal betting.
• Likewise, communication actions aimed at children and adolescents or broadcast in media whose main audience is people under eighteen years of age are not allowed.
• Advertising and marketing pieces must include the symbol "18+" or the warning "prohibited for persons under 18 years of age".
• Players are prohibited from acting as gambling intermediaries, placing bets for third parties as if they were their own.

The full document can be read here.