ARTICLE
9 August 2024

Ministry Of Finance Publishes Ordinance With Rules For Online Games

The regulation sets rules and requirements for online games and live studios, ensuring legal certainty and international alignment for betting operators in Brazil. On July 31, the Ministry of Finance's Bureau...
Brazil Media, Telecoms, IT, Entertainment
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The regulation sets rules and requirements for online games and live studios, ensuring legal certainty and international alignment for betting operators in Brazil

On July 31, the Ministry of Finance's Bureau of Prizes and Betting (SPA/MF) published Ordinance No. 1,207/2024 which sets the rules for online games and live game studios applicable to those agents that operate fixed-odds lottery.

The new Ordinance aims to establish the technical requirements applicable to online games and live game studios in the following modalities:

  • online multiple betting games;
  • online slot games;
  • online crash games;
  • online card games;
  • online blackjack games;
  • online roulette games;
  • online dice games
  • online sports or racing games; and
  • online ball and number draw games.

By setting clear technical standards for online gaming modalities, the Bureau offers legal certainty to betting operators in Brazil, ensuring that the games provided meet the fixed-odds criteria outlined in Law No. 14,970/2023.

With this Ordinance, Brazil strengthens its position in the international market by adhering to international guidelines on operational safety and reliability, in line with the main global gaming markets.

Among the stipulated obligations, operating agents must ensure that the online games offered, and the live game studios used are certified by entities recognized by SPA/MF.

Online games must be random and transparent, providing bettors with the payout tables before placing bets, indicating all possible winnings. It is also necessary that, at the time of the bet, the game displays the multiplier factor that determines the amount to be received by the bettor in case of a win.

The live game studios must broadcast all stages of the game live, receive instructions from the bettor through an interface or another communication channel, and implement the operational procedures and controls specified in Annex II of the Ordinance.

The Ordinance also defines the types of games that do not qualify as fixed-odds online games and, therefore, are not covered by this regulation, which are: games of skill, fantasy sports, multi-bettor games, and peer-to-peer (P2P) games.

Finally, the Ordinance reinforces that operating agents cannot offer bets on online games in physical establishments.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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