New Rules for Payment Transactions by Fixed-Odds Betting Operators in Brazil

In a further step towards regulating the new Betting Law (Law No. 14,790/2023), Normative Ordinance SPA/MF No. 615, of April 16, 2024, was published in the Official Gazette of the Union on April 18, 2024. Issued by the Secretariat of Prizes and Bets (SPA), the ordinance establishes general rules for payment transactions carried out by agents authorized to operate fixed-odds betting in Brazil.

The ordinance details the financial flow for bets that will be authorized by the Ministry of Finance, from the moment the bettor transfers funds to place their bets until the moment the prizes are paid, if any.

According to the new rules, bettors can make transfers for bets using PIX (BR Instant Payment System), Electronic Transfer (TED), debit or prepaid cards, as long as the funds come from their registered account on the betting platform. Methods such as cash, payment slip (boletos), cryptocurrencies, or alternative forms of deposit will not be accepted, as well as credit cards or other post-paid instruments.

An important highlight of the ordinance is the maximum period of 120 minutes for authorized platforms by the Ministry of Finance to pay prizes to bettors, after the end of the sporting event or an online gaming session.

The ordinance also ensures the segregation of funds from bettors and operating agents, as established in Law No. 14,790, of December 29, 2023, preventing bettors’ funds from being used for operating expenses or as collateral for debts.

In addition, authorized operating agents are required to constitute a financial reserve of R$ 5 million (approximately USD 1 million) as a preventive measure to guarantee the payment of prizes and other amounts due to bettors in case of insolvency or illiquidity.

The new rules aim to increase transparency and security in the fixed-odds betting market in Brazil, protecting bettors’ rights and ensuring the financial sustainability of the sector.

If you would like to know more about the regulatory and legal developments related to the betting market in Brazil, please do not hesitate to contact our partner felipe.monteiro@kasznarleonardos.com.