Brazil's Ministry of Finance publishes ordinance with conditions that gambling companies must fulfill

The Ministry of Finance issued the Normative Ordinance MF No. 1,330/2023, which will establish the conditions for the commercial operation of the so-called fixed odds lotteries, as well as the general rules on the rights and obligations of the bettor, the prevention of money laundering and other crimes.

Published on October 27, the ordinance indicates that those interested in applying for a license must submit a prior expression of interest within 30 days. The document establishes rules on responsible gaming, and advertising and the requirement that the company be established in Brazil. In addition, foreign firms must open a subsidiary in the country.

The text is based on the measures established in Law 13,756/2018 with the changes promoted by Provisional Measure 1,182, published on July 24, 2023, and not yet approved by Congress.

Another of the points mentioned in the ordinance of the ministry led by Fernando Haddad is that partners or shareholders may not have convictions for administrative impropriety or tax evasion. In addition, the interested company must, among other things, prove the lawful origin of the funds that make up its capital stock, in addition to having a Portuguese-speaking customer service center based in Brazil.

Fernando Haddad, Minister of Finance

The publication also stipulates that companies must implement a policy to prevent manipulation of results and money laundering. The Treasury will periodically publish a list of all sites authorized to operate.

The Government also mandates that only those over 18 years of age may access the sites and that companies must promote campaigns to prevent compulsive and pathological gambling.

In addition, it is prohibited for betting companies to: accept payment instruments that offer a post-payment account to the bettor; accept cash; issue proposal receipts; and accept deposits from third parties in the bettor's account.