Ministry of Finance ordinance issued in response to recent money laundering police operations suspends betting companies that have not applied for authorization to operate in Brazil
The Ministry of Finance, through the Secretariat of Prizes and Betting, has issued Ordinance No. 1,475/2024, which outlines the conditions and deadlines for companies operating fixed-odds lottery betting.
The ordinance provides for the suspension, starting October 1, 2024, of fixed-odds betting companies that have not applied for authorization to operate in Brazil.
Thus, from October to December, only those betting companies that are already operating and have applied for authorization by September 16 will be allowed to continue, referred to as the "adjustment period."
Companies that do not fall within the "adjustment period" or do not have authorization from the Secretariat of Prizes and Betting will be deemed illegal and notified to block and remove apps offering services in violation of current legislation and regulations from October 11, 2024.
Companies that have already requested authorization must inform the Secretariat of Prizes and Betting of their active brands and respective internet domains by September 30, 2024. Only the brands and domains indicated to the Secretariat will be allowed to offer fixed-odds betting during the adjustment period.
Moreover, companies that have requested authorization must comply with all rules regarding fraud prevention, money laundering, and abusive advertising starting January 2025.
Finally, the Ordinance states that during the analysis of authorization requests, any illegal acts will be considered by the Secretariat, "taking into account national interest and the protection of the public's interests." The Secretariat's initiative focuses on recent police operations and money laundering investigations involving betting companies.
According to Regis Dudena, Secretary of Prizes and Betting, the aim is to "protect the mental, financial, and physical health of bettors by curbing the activities of companies that use sports betting and online games as a means to commit fraud and money laundering."
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