Given the significant growth of the BETs market and the strict requirements imposed by the new regulatory framework, it is essential to have specialized guidance in the complex process of obtaining authorization and complying with the established legal and operational requirements.
Accreditation
It is common knowledge that the BETs market (the term given to operators of fixed-odds betting) is experiencing significant growth.
Recognizing this scenario, in 2023, following a provisional measure issued by the Presidency, Law 14.790/2023 was enacted.
With this regulatory framework, several ordinances were published by the Ministry of Finance, notably Ordinance No. 1.330/2023, which establishes the general conditions for the commercial operation of this lottery modality, and Ordinance No. 827/2024, which defines the rules and conditions for obtaining authorization for the commercial operation of fixed-odds betting by private economic agents throughout the national territory.
The authorization process (sometimes referred to as “concession” or “accreditation”) can occur at the federal level but also at the state level, in which case it is regulated by state legislation.
Each federal unit has its own set of rules for accreditation, and the feasibility of each process will depend on the business plan of the interested company.
Given the substantial growth of the BETs market and the strict requirements imposed by the new regulatory framework, specialized guidance becomes essential for navigating the complex process of obtaining authorization and complying with the established legal and operational requirements.
This requires a team prepared to assist your company at every stage, from eligibility analysis to the implementation of the necessary structures for the full operation of your business.
This involves a team that is ready to assist your company at every stage, from eligibility analysis to the implementation of the necessary structures for the full operation of your business.
At the federal level, to operate nationwide, the company must verify if it meets the requirements for requesting authorization, especially:
Legal Eligibility
The company must be a legal entity established in Brazil, either limited or corporation, with headquarters and administration in national territory. If it is a subsidiary of a foreign company, at least 20% of the share capital must be owned by a Brazilian.
Tax and Labor Compliance
The company must present negative certificates for federal, state, and municipal taxes, as well as for the FGTS (Severance Indemnity Fund) and the Labor Court.
Integrity
The company must demonstrate the impeccable reputation of its administrators and partners. It must also present negative certificates of criminal records and administrative misconduct.
Economic-Financial Capacity
The company must demonstrate a minimum net worth and fully paid-in share capital of R$ 30 million, as well as maintain a financial reserve of R$ 5 million.
Technical Qualification
The company must have a betting system certified by an authorized laboratory. It must also demonstrate experience or technical knowledge in betting, games, or lotteries.
Policies and Governance
The company must implement anti-money laundering and responsible gaming policies, and ensure a governance structure that is compatible with the business's risks.
Once these requirements are met, the company must initiate the process for obtaining authorization, which occurs in several stages, with emphasis on:
- Request: This involves submitting the request and documentation through SIGAP (Betting Management System). The documents include proof of tax compliance, legal eligibility, technical qualification, and economic-financial capacity.
- Analysis: After the request, the Secretary of Prizes and Bets has up to 150 days to analyze the documentation and notify:
- Approval (authorization granted).
- Rejection (justified by inconsistencies or irregularities) – in this case, there is the possibility of filing an appeal.
- Payment of the Concession Fee: After approval, the concession fee must be paid.
- Implementation: The operator must structure systems and processes to meet the technical and operational requirements.
- Publication of Authorization: Finally, the authorization is formalized by an ordinance published in the Official Federal Gazette.
It is important to highlight that the authorization is valid for five years, being personal and non-transferable. In this regard, significant corporate changes may require a new analysis.
Given the significant growth of the BETs market and the strict requirements imposed by the new regulatory framework, it is essential to have specialized guidance in the complex process of obtaining authorization and complying with the established legal and operational requirements.
This involves a team that is ready to assist your company at every stage, from eligibility analysis to the implementation of the necessary structures for the full operation of your business.