Brazil’s Ministry of Finance has released a new ordinance in the Official Gazette aiming to regulate the transfer of gambling data within the emerging market.
According to SBC Brasil, Ordinance No. 1,857, enacted by the Secretariat of Prizes and Bets (SPA), “regulates the transfer of data and funds of bettors engaged in fixed-odds lottery betting across legal entities of the same economic group, while also detailing scenarios where such transfers are prohibited.”
The ordinance includes several articles to establish a comprehensive regulatory framework. Notably, article 3 specifies that player data and funds can be accessed by both national and international license holders, provided they transfer such data to legal financial institutions and obtain authorization from SPA.
Companies intending to enter the gambling market starting in January must apply for this authorization by December 13. However, as stated in article 5, SPA may extend this deadline if additional information is required during the application process.
Moreover, article 7 grants players the right to fully withdraw their funds by transferring them to a payment account registered with a financial institution authorized by the Central Bank of Brazil.
“Any funds belonging to bettors in transactional accounts of the sending legal entities, which remain unwithdrawn or untransferred as per article 7 by March 31, 2025, must be transferred to the deposit or payment account registered by the bettor with the sending legal entity and reflected in the financial balances of the receiving legal entity,” stated Ordinance 1,857.
SPA has made it clear that firms failing to secure SPA authorization under the new ordinance, or those whose applications are denied, will face challenges in operating effectively within the market.
As Brazil prepares for the launch of the Betting Market, SPA has disseminated targeted technical ordinances, which address compliance requirements in several domains, including IT security protocols, licensing standards, payment processing, anti-money laundering (AML) measures, gaming regulations, and responsible gambling practices.
Last week, SPA President Regis Dudena informed governmental and relevant authorities of SPA’s initiation of the final licensing procedures, during which the first qualified operators for the Betting Market will be announced.
Dudena remains hopeful about the Betting Market’s anticipated launch in January 2025, while vigilantly following regulatory developments that could introduce further restrictions and technical requirements, potentially causing delays in launching Brazil’s federal online gambling marketplace.
Regardless of the exact launch date, Brazil is poised to become one of the most lucrative regulated markets globally, with experts forecasting that online sports betting and gaming could amass approximately $4.9 billion annually within five years.
