Egaming Services

Category: Laws

National Law on Games of Chance of Curaçao
On December 24, 2024, online gaming regulation in Curaçao underwent a significant transformation due to the implementation of the National Ordinance on Games of Chance (LOK). This new regulatory framework replaced the former National Ordinance on Offshore Games of Hazard (NOOGH) and introduced essential changes for both B2C and B2B operators.
In this blog, we will provide a detailed summary of the new rules, requirements, and fees involved in the National Law on Games of Chance of Curaçao.

1. Objectives of the National Law on Games of Chance of Curaçao

The new legislation was created with the purpose of modernizing the country’s gambling sector. To achieve this, it establishes clear guidelines for the organization and operation of these activities, ensuring a regulated and secure environment. Its main objectives include:
- Defining precise rules for the offering and management of games of chance.
- Strengthening regulatory supervision to ensure compliance with the norms.
- Implementing measures to mitigate the risks of gambling addiction, protecting consumers.
- Gradually applying legislation, starting with the regulation of remote gambling.
- Creating an independent regulatory entity that will oversee and control the sector.
2. Transition from NOOGH to LOK

With the LOK coming into effect on December 24, 2024, the transition process includes:
- Processing of previous applications under the NOOGH rules.
- New applications subject to LOK requirements.
- Conversion of old licenses: NOOGH licenses will be automatically converted into provisional LOK licenses.
3. Licensing Structure and Validation Process

During the second validation phase, the Curaçao Gaming Authority (CGA) may grant a provisional gaming license for a period of up to 6 months, extendable for another 6 months (except in cases prohibited by Article 2.2 of the LOK).

Criteria for Gaming License Denial – Article 2.2

The CGA may refuse to grant a license if it identifies factors that compromise the integrity and security of the sector. The main reasons for denial include:
1. Lack of Verification: Identities of Ultimate Beneficial Owners, holders of Qualified Interest, and decision-makers have not been properly verified.
2. Criminal Record: Involvement of the Ultimate Beneficial Owner with more than 25% participation, or the holder of a Qualified Interest with more than 25% participation, in financial crimes in the last 8 years (theft, fraud, money laundering, terrorist financing, etc.).
3. Source of Funds: Resources to finance the operation are unidentified or linked to illegal activities.
4. Debts: Any license fees due in relation to the application have not been fully paid.
5. Suspended Previous Licenses: Connection with operations that had their license revoked.
6. Financial Capacity: Lack of liquid assets to pay prizes to players.
7. Responsible Gaming Policy: Absence of measures for player protection.
8. Dispute Resolution: Lack of a system approved by the CGA.
9. Vulnerable Key Persons: Involvement of individuals classified as vulnerable.
10. Registration in goAML: Non-compliance with anti-money laundering requirements.
Suspension and Revocation of the Gaming License

The CGA has the authority to suspend or revoke a license in cases of:
1. Serious violation of licensing conditions;
2. Failure to pay mandatory fees;
3. Non-compliance with responsible gaming standards;
4. Involvement in fraudulent or illegal activities;
5. Mismanagement or misuse of player funds.
Besides the mentioned criteria, the CGA may consider other factors affecting the sector’s integrity and, if necessary, determine the suspension or revocation of the license.

4. Requirements and Process for Obtaining a Gaming License

Operators must meet the following criteria:
- Obtain a public limited company or a limited liability company, registered in Curaçao and managed by a natural person residing in Curaçao or by a legal entity incorporated and registered in Curaçao.
- Completion of revised forms and payment of the application fee.
- Detailed analysis of the business and financial structure.
- Demonstration of compliance with player protection and digital security guidelines.
If you do not yet have a registered company in Curaçao, we can assist you with company incorporation and the appointment of a resident Managing Director. Learn more about our incorporation service here.

5. Fee Structure and Costs

Application Fees
- EUR 4,592 for B2C and B2B operators.
- EUR 150 per UBO (Ultimate Beneficial Owner) or Qualified Interest holder.
- EUR 2,551 per UBO listed in the application.
Annual Fees
B2C Operators:
- EUR 24,490 (License Fee – National Treasury)
- EUR 22,960 (Supervision Fee – CGA)
- Total: EUR 47,450 per year
B2B Operators:
- EUR 24,490 (License Fee – National Treasury)
Administrative Fees
- Additional domain (B2C): EUR 250 per domain
- Certificate Application: EUR 383
- Change or addition of UBO: EUR 128 per person
6. Licensee Registration and Financial Reporting Obligations – Article 5.11

Licensees must comply with strict registration and financial reporting requirements, ensuring full transparency and compliance with CGA guidelines. This includes:
- Maintaining detailed financial records.
- Regularly submitting accounting and operational reports.
- Undergoing periodic audits to ensure compliance with LOK rules.
- Implementing anti-money laundering and terrorist financing measures.
7. Licensee Obligations – Article 5.12

Licensed operators are responsible for:
- Ensuring player safety and implementing responsible gaming policies.
- Complying with all tax and regulatory obligations imposed by the CGA.
- Providing adequate player support and effective complaint mechanisms.
- Maintaining high standards of integrity and transparency in all operations.
Conclusion

The new gaming regulation in Curaçao establishes a stricter and more transparent environment for iGaming operators. The transition to LOK brings stricter rules, with clear compliance, financial reporting, and business structure requirements. To ensure compliance and avoid penalties, it is essential that operators prepare in advance and adjust their internal processes.

If you would like more information or to start your license application under LOK, contact Egaming Services for personalized guidance.
March 7, 2025
Establishing Companies in Brazil: The New Proposal from Egaming Services for iGaming Operators
Due to the growing expansion of the betting sector in Brazil, many companies are facing regulatory challenges that require quick action and expertise. For this reason, we would like to offer an innovative solution, which involves establishing companies Brazil. This new service not only helps meet the new legal requirements but is also part of a rebranding strategy that positions Egaming Services as a symbol of flexibility, adaptability, and humanization.

Why establish companies in Brazil?

Due to the regulation of sports betting in Brazil, companies that wish to operate in the country must now establish their activities locally. This step is crucial to ensure that operations comply with Brazilian laws, promoting security and clarity within the sector. However, this process can face challenges, ranging from bureaucracy to strict compliance with local regulations. This is where Egaming Services comes in, providing full support to make it easier for companies to enter the Brazilian market. In this way, operators can focus on expanding their businesses, removing barriers to growth.

What are the benefits of establishing companies in Brazil?
- Compliance with Local Regulations: Brazilian regulation requires activities to comply with local standards, ensuring greater security and clarity in the iGaming sector.
- Tax Benefits: Establishing a structure in Brazil provides several tax benefits compared to hiring international companies for technology services.
Companies that decide to hire services from international providers may face a significant tax burden, including:
- Withholding Income Tax (IRRF): Rate of 15% or 25%, depending on the supplier’s jurisdiction.
- Economic Domain Intervention Contribution (CIDE): Rate of 10% on contracts involving technology transfer.
- PIS/Cofins-Import: Combined rates of 9.25%.
- Service Tax (ISS): Rate varying from 2% to 5%, depending on the municipality.
- Financial Operations Tax (IOF): Rate of 0.38% on exchange transactions. Registering companies in Brazil can significantly reduce these costs, as well as facilitate customer service and strengthen market presence.
Egaming Services: The Solution for iGaming Companies in Brazil

As explained by Daniel Santos, CEO of Egaming Services:

“With the regulation of the betting sector in Brazil, it is essential that companies wishing to offer technological solutions to licensed operators create a local infrastructure. In addition to meeting legal requirements, this option offers several tax benefits, avoiding high costs related to hiring foreign suppliers, such as IRRF, CIDE, PIS/Cofins-Import, ISS, and IOF. Having a structure in the country is not just a competitive advantage but also a crucial approach to ensure sustainable growth. With our experience and strategic planning, we contribute to creating a structure that not only meets legal requirements but also drives our clients’ financial results.”

Personalized Consulting: Facilitating the Process with Egaming Services

We offer comprehensive consulting for establishing companies in Brazil, analyzing each case uniquely to optimize tax incentives and reduce costs. Our goal is to remove bureaucratic barriers, enabling operators to focus on expanding their businesses.

Turning Challenges into Opportunities:

With the regulation of the Brazilian market, a unique growth opportunity arises for iGaming companies. Egaming Services is ready to support your company in adapting to the new standards, ensuring a strong and effective entry into the sector. If you have any questions about Egaming Services’ services, feel free to contact us!
December 13, 2024
Advantages of the Curaçao License

Curaçao is an island located in the Caribbean and a constituent nation of the Netherlands, known for issuing the oldest e-gaming license in the market. Gambling regulations on the island were established in 1993, and in 1996, local authorities began granting licenses for online gambling. With high regulatory efficiency and favorable tax policies, Curaçao has become a prominent offshore business hub, attracting companies from various sectors, including online gaming.

The Curaçao license is widely recognized and increasingly sought after by gaming operators looking to enhance their legitimacy and expand their reach in a competitive market. Its popularity stems from reliability, cost-effectiveness, and the simplicity of the acquisition process, making Curaçao one of the most desirable jurisdictions for gaming licenses.

If you wish to learn more about this license, Egaming Services is your ideal solution. We are experts in gaming sector consulting and offer comprehensive support for operators seeking to obtain and maintain the Curaçao license, assisting with compliance with local and international regulations.

1. Advantages for Online Gaming Operators

The Curaçao license offers numerous advantages for online gaming operators aiming to establish or expand their businesses. In addition to being one of the oldest and most respected licenses in the market, Curaçao provides a more flexible regulatory environment, with an approach that facilitates new operators entering the online gambling sector. If you’re looking for a license that allows you to start your operations quickly and with fewer complications, Curaçao is the answer, especially when compared to other jurisdictions requiring more complex and lengthy processes.

2. Simple and Fast Issuance Process

One of the primary advantages of the Curaçao license is its simple and quick licensing process. Curaçao allows operators to obtain their licenses in a significantly shorter time frame. Its regulatory structure is less stringent than in many other regions, offering an effective and hassle-free way for new operators to enter the online gaming market.

3. Affordable Costs

The costs associated with obtaining and maintaining a Curaçao license are significantly lower compared to other popular jurisdictions like Malta or the UK. While some of these jurisdictions impose high registration, renewal, and compliance fees, Curaçao stands out for its affordability, making it an attractive option for new operators entering the industry or companies looking to optimize operational costs. Additionally, tax rates in Curaçao are relatively low, which can lead to substantial savings for online gaming businesses.

4. Global Reach

Another key advantage of this jurisdiction is its ability to allow operators to offer their services in various countries worldwide, as long as they comply with local laws in each region. This means that by acquiring a Curaçao license, operators can easily expand their operations globally, reaching an international customer base. The geographic flexibility of the license enables operators to explore new markets and enhance their visibility in different parts of the world—crucial in a competitive online gaming market.

5. Tax and Financial Benefits

Curaçao’s tax structure is one of its main attractions for online gaming businesses. The country offers reduced tax burdens compared to other gaming licensing jurisdictions, allowing companies to retain a greater portion of their profits. Furthermore, Curaçao provides tax exemptions and reduced profit taxes, making it even more appealing to operators seeking to maximize their earnings. For online gaming companies, a favorable tax environment can significantly impact long-term profitability.

6. Compliance and International Reputation

Curaçao has a clear set of regulations and compliance requirements that operators must adhere to in order to maintain their licenses in good standing. Compliance with local regulations is essential to ensure the security and integrity of operations. Additionally, holding a Curaçao license conveys trust and legitimacy to players, demonstrating that the operator is committed to following safety standards and ethical practices. This not only ensures compliance with international laws but also helps operators build a solid and trustworthy reputation in the online gaming market.

7. Support for Payments and Transaction Processing

A significant advantage of holding a Curaçao license is the ease it offers operators in establishing partnerships with banks and payment providers. This facilitates secure and reliable transaction processing, a crucial factor for the user experience on online gaming platforms. Moreover, the Curaçao license allows operators to offer a variety of payment methods, enhancing the player experience and increasing customer satisfaction. The flexibility in transaction processing and the reliability of payment platforms make the Curaçao license an attractive option for operators seeking to build trust with their players.

8. Ease of Integration with Games and Platforms

Curaçao also simplifies the integration of different game providers into the platforms of licensed operators. This allows operators to offer a wide variety of games to their players, from online slots to table games and sports betting. The ease of integration with various game providers is a significant technical advantage, offering more flexibility and diversity in gaming portfolios. With the Curaçao jurisdiction, operators can easily expand their offerings and enhance the player experience—essential for attracting and retaining customers in a competitive market.

Conclusion

In summary, the Curaçao license represents a strategic solution for online gaming operators seeking an efficient and affordable option to regularize their operations and expand their global presence. With tax benefits, integration flexibility, and a respectable market reputation, Curaçao continues to attract companies prioritizing a fast and cost-effective entry into the sector. For those looking to establish or grow a business in the competitive online gaming market, this license offers an excellent balance of reliability and affordability. If you have any questions, feel free to contact us!

November 26, 2024
What To Expect from the Changes to the Curaçao License?
In recent years, the online gaming sector has expanded rapidly, and Curaçao has established itself as one of the top destinations for obtaining gaming licenses. The island is widely recognized as an offshore business hub, attracting new operators due to its flexible approach and easy approval process. However, with the growth of operations and the need to combat illegal gaming, the Curaçao government has announced significant changes to the licensing system.

The reforms include the creation of a new regulatory body and the imposition of stricter requirements aimed at making the gaming environment safer and more transparent. In this article, we will explore how the Curaçao license works, the expected changes, and how these reforms impact casino and online betting operators.

How Does the Curaçao License Work?

The Curaçao license covers a variety of activities, including sports betting, casinos, poker, and lotteries, making it a popular choice for new operators looking to enter the market with fewer barriers. However, the restructuring of the licensing system, announced in 2023, aims to increase transparency by establishing stricter requirements.

Previously, the system included master licenses issued by four authorized entities, and sub-licenses granted by the holders of these licenses. This structure created confusion, as the requirements and levels of control varied between operators. In addition to being an important hub for iGaming, Curaçao is also an offshore business center, attracting companies from various sectors. Gambling regulation on the island began in 1993, and it now seeks greater control and transparency in the online market.

Types of Games Covered by the Curaçao License:
- Online Casino Games;
- Sports Betting;
- Bingo and Lottery;
- Poker Rooms;
- Esports.
Key Expected Changes to the Curaçao License

With the accelerated growth of the online gaming market and the increasing need for more control and transparency, the Curaçao government will implement significant reforms. These changes aim to ensure a safer and more regulated gaming environment. EGS Digital Services is ready to manage the entire licensing process for you, ensuring your operation complies with the new requirements. Below, we highlight the main changes to the Curaçao license:

1. Simplified License Structure

The old structure, which included master licenses and sub-licenses, has been replaced. Now, there are only two types of licenses: B2B (Business to Business) and B2C (Business to Consumer). This simplification allows all major online gaming operators to operate under a clearer and more straightforward set of regulations.

2. Centralized Authority

All aspects related to licensing and compliance will be managed by the newly created Curaçao Gaming Control Authority (CGA). This centralization aims to increase efficiency and effectiveness in overseeing the industry, ensuring that all operators meet the required standards.

3. Simplified Application Process

To facilitate access to licensing, operators can now submit their applications easily through an online portal.

4. One-Year Validity

The new licenses will be valid for one year, requiring operators to stay alert to possible revocations or legislative changes during this period. This means that continuous compliance will be essential for maintaining the license.

5. License Scope

The new license allows for the provision of remote gambling services, ensuring that operators can offer a wide range of online games, from casinos to sports betting, within the new regulatory parameters.

Initial Timeline for the Curaçao License Changes
- July 17, 2023: The Ministry of Finance released plans for the new licensing regime, anticipating the implementation of the National Gambling Ordinance (LOK). Master licenses receive a one-year extension to facilitate an organized transition.
- November 15, 2023: The application process begins for the master license under the National Ordinance on Offshore Gaming (NOOGH). This step marks a new chapter in Curaçao’s iGaming regulation, signaling significant changes in how online gaming is managed.
- April 2024: The new legislative framework of the LOK is expected to take effect. Entities holding sub-licenses under the NOOGH will begin a gradual transition over nine months, while others will have a shorter three-month period to adapt to the new requirements.
- September 2024: This is the final deadline for implementing the new LOK regulations, marking the end of the master license era in Curaçao. From this date forward, all gaming operations must comply with the new rules.
*This timeline is subject to change!

Impact of the New Rules on Casino and Betting Operators

The new regulations bring both advantages and challenges for operators who already have or are seeking a Curaçao license. Let’s explore these points below:

Advantages
1. Increased Credibility – The reforms aim to strengthen the reputation of the Curaçao license in the global market. Licensed operators will be subject to stricter audits and inspections, which could increase trust from players and business partners.
2. Access to New Markets – With greater international cooperation, companies licensed in Curaçao may face fewer barriers when entering new markets, especially those with stricter regulations.
3. Safer Environment for Players – The new regulations emphasize responsible gaming practices and consumer protection, which may attract players looking for casinos with a high level of security and transparency.
Challenges
1. Higher Operational Costs – Operators will need to invest more in compliance, security, and audits.
2. Compliance Requirements – Meeting new licensing requirements, such as implementing anti-money laundering policies, may demand more resources and specialized staff.
How to Prepare for the Changes to the Curaçao License

If you are an online casino operator who already holds a Curaçao license or is considering applying for one, it is important to be aware of the changes that will come into effect. At EGS Digital Services, we understand that dealing with bureaucracy can be complicated, but we are here to handle everything for you.

Conclusion

EGS Digital Services aims to simplify the licensing process as much as possible. With our expertise, you don’t have to worry about the new requirements or the complexity involved. We take care of all the documentation and ensure that your operation complies with the rules, allowing you to focus your efforts on growing your business.

Count on us to manage all the bureaucracy and simplify your journey in the online gaming sector. We are dedicated to helping you succeed, so don’t hesitate to contact us.
November 19, 2024
New Rules for Fixed-Odds Betting Authorization in Brazil

On Wednesday (22), the Ministry of Finance’s Prizes and Betting Secretariat published Ordinance SPA/MF No. 827 dated May 21, 2024, establishing rules for fixed-odds betting and conditions for commercial exploitation of fixed-odds lottery betting nationwide. Legal entities in Brazil since Law No. 14,790/2023 must comply with new provisions by December 31, 2024, or face penalties starting January 1, 2025.

Only legal entities authorized by the Prizes and Betting Secretariat can operate fixed-odds lottery betting nationwide, adhering to Brazilian laws with headquarters and administration within the country.

A national entity, subsidiary of a foreign firm, following Brazilian laws with management and headquarters in Brazil, may gain authorization if at least twenty percent of its capital is Brazilian-owned. Branches or subsidiaries of foreign firms abroad are ineligible. Authorization is limited to limited liability companies or corporations.

New Ordinance Allows Legal Entities to Operate Up to Three Online Betting Brands for Five Years at R$30 Million

The authorization, costing R$ 30 million, allows a legal entity to operate three commercial brands on electronic channels for five years. It’s personal, non-negotiable, and non-transferable. Entities may request authorization following established procedures anytime.

SPA/MF may review authorization during mergers, splits, acquisitions, transformations, or changes in corporate control. Operators must submit documentation within thirty days of such changes to prove compliance.

Operators can consult SPA/MF before corporate changes to avoid affecting authorization. SPA/MF will analyze such requests within 150 days, ensuring due process.

Authorization applications must digitally include documents verifying legal, tax, and labor qualifications, integrity, economic-financial capability, and technical qualifications. Foreign documents must be translated into Portuguese by a sworn Brazilian translator.

Legal qualification requires various documents. Economic-financial qualification involves data security, safe betting system operation, integrity, compliance, customer service, and Ministry of Finance communication. Responsible individuals must hold director-level positions.

The requesting entity must register with the Commercial Registry under CNAE 9200-3/99, focusing on “Fixed Odds Betting Exploration.”

Comprehensive Documentation and Integrity Proof Required for Regulatory Compliance

The regulation mandates demonstrating integrity through various documents, declarations, and certificates. These include declaring the lawful origin of resources comprising the entity’s share capital, those of its controllers, ultimate beneficial owners, directors, and legal representatives, including foreign nationals. The entity must submit certificates from the Federal Police, state or Federal District Civil Police, and federal and state courts to prove the absence of convictions barring access to public office.

Foreign nationals must provide equivalent documents from their countries of origin. The entity must maintain records proving the lawful origin of resources accessible to SAP/MF.

Economic and financial qualification will be assessed through documents and certificates, including proof of a financial reserve of at least R$ 5 million, evidence of fully paid minimum share capital of R$ 30 million, proof of a minimum net worth of R$ 30 million, and a declaration of controllers’ economic and financial capacity (Annex X).

Companies established less than a year ago must furnish an opening balance sheet, projected cash flow for the next two financial years, and a report detailing economic and financial assumptions, signed by the financial director or equivalent.

Essential Integrity and Financial Requirements for Legal Entities in Betting Sector

To operate more than three commercial brands, entities must make additional payments and follow procedures. Each extra authorization requires paying R$ 30 million, establishing a financial reserve of R$ 5 million, paying R$ 15 million in currency, and maintaining a net worth equal to the share capital.

To demonstrate technical qualification, the entity must provide either a request protocol or a technical certificate of the betting system from a laboratory recognized by SPA/MF, confirming adherence to specified technical requirements.

Comprehensive Compliance and Integrity Requirements for Betting Operators in Brazil

The operator must declare (Annex IX) and implement policies, procedures, and internal controls to: prevent money laundering and terrorism financing; promote responsible gambling and prevent gambling disorders; adhere to a code of conduct and promote good practices in advertising and marketing; ensure bet integrity and prevent fraud; manage liquidity risk per SPA/MF payment regulations; maintain IT continuity as per SPA/MF betting system requirements; and establish suitable corporate governance.

Additionally, the operator must detail the customer service structure in Brazil, offering support in Portuguese through free electronic and telephone channels, available 24/7 for handling complaints and inquiries. Proof of gaming, betting, or lottery experience is required from at least one member of the controlling group, including three years’ professional experience or current involvement in sector-related companies. Furthermore, evidence of compliance with administrative position requirements, registration on Consumidor.gov.br, affiliation with responsible advertising oversight organizations, and association with national and international bodies monitoring sports integrity to prevent match-fixing is mandatory.

Detailed Licensing and Integrity Requirements for Fixed-Odds Betting Operators in Brazil

The operator must provide a list of all licenses for the operation and commercialization of fixed-odds betting in other jurisdictions and states, including abroad, for the requesting legal entity or its controllers. This list should include the identification number, issuance date, validity period, and location.

Administrators of the requesting legal entity must meet integrity requirements and have at least three years of professional experience in relevant areas or possess a higher education degree compatible with their position.

During the evaluation of the authorization request, the Secretariat of Prizes and Betting of the Ministry of Finance may request additional documents or information through the Betting Management System (SIGAP). The requested documents or information must be provided within 15 days of the notification sent through SIGAP.

Failure to provide the requested documents or information within the specified period, without justification, will result in the definitive filing of the authorization request.

The following proofs may be submitted within 30 days of the notification: payment for the authorization fee, establishment of the financial reserve, full payment of the minimum share capital of R$ 30 million in local currency, a declaration of the lawful origin of the share capital resources, proof of a minimum net worth of R$ 30 million, a technical certificate for those who submitted the request protocol, and implementation of the bettor support system.

How to Apply for Authorization to Operate Fixed-Odds Betting in Brazil

Interested parties must submit their application for authorization to operate fixed-odds betting commercially, along with all required documents demonstrating compliance with the conditions and rules established in this Ordinance, through the SIGAP system of the Secretariat of Prizes and Betting of the Ministry of Finance.

Legal entities interested can initiate the application process as specified upon the publication of this Ordinance.

If accessing SIGAP poses challenges, SPA/MF will publish an alternative method for submitting applications and documents, available at https://www.gov.br/fazenda/pt-br/composicao/orgaos/secretaria-de-premios-e-apostas

SPA/MF has up to 150 days from the application protocol date in SIGAP to notify requesting legal entities about: payment of the authorization fee and submission of proof, or refusal of the authorization request.

The notification deadline will adhere to suspension conditions outlined in this Ordinance.

Once all Ordinance requirements and other relevant regulations are fulfilled, SPA/MF will notify the requesting legal entity via SIGAP to submit payment for the authorization fee and provide proofs.

Legal entities must submit proof of payment to the Single Account of the National Treasury, totaling R$ 30 million per authorization, to SPA/MF through SIGAP within thirty days of notification.

Authorization fee payments must exclusively use the Union Collection Guide (GRU) via the Brazilian Payments System (SPB). After fee payment, SPA/MF will grant authorization through publication of an ordinance in the Official Gazette of the Union.

Essential Compliance and Documentation Requirements for Fixed-Odds Betting Authorization in Brazil

The Secretariat of Prizes and Betting of the Ministry of Finance will refuse authorization requests from legal entities if they fail to sufficiently demonstrate compliance with the requirements established in Law No. 13,759 of 2018, Law No. 14,790 of 2023, this Ordinance, and other regulatory norms issued by the Ministry of Finance; or if they submit fraudulent, altered, or false information.

Throughout the authorization period, the authorized operator must keep the required documentation updated according to this Ordinance and other current legal and regulatory norms. SPA/MF may request proof of compliance at any time.

The betting operator must notify SPA/MF within ten days of any changes to the conditions that justified the authorization.

Legal entities submitting authorization requests within the first 90 days from the publication of this Ordinance are entitled to the following rights: notification will be sent within 180 days from the publication date, subject to suspension conditions outlined in the regulation. Authorization will be granted until December 31, 2024, through publication of an ordinance in the Official Gazette of the Union, provided all requirements of this Ordinance are met, including presentation of evidence. All authorization ordinances granted under this provision will be published simultaneously.

Deadline and Compliance for Fixed-Odds Betting Operators in Brazil: Key Dates and Penalties

Legal entities in operation in Brazil on the date of Law No. 14,790/2023’s publication must adhere to current legal and regulatory provisions for fixed-odds betting from the date of this Ordinance until December 31, 2024.

Starting January 1, 2025, legal entities operating in Brazil without proper authorization from SPA/MF to commercially exploit fixed-odds betting lotteries will incur relevant penalties.

According to this Ordinance, the requesting legal entity will be considered duly notified from the sixth day after SPA/MF dispatches the notification, or from the date of their consultation with SIGAP, if earlier.

For more information about the brazilian market, licensing and payment provider, talk to our consultants

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November 19, 2024
Normative Instruction on Online Betting Social Contribution in Brazil

The Brazilian Federal Revenue Service (RFB) announced a significant change in Normative Instruction on Online Betting RFB No. 2,005, of January 29, 2021. The amendment, published in Normative Instruction RFB No. 2,188, of April 29, 2024, concerns the “social contribution incident on the lottery modality called fixed-odds sports betting.”

In other words, this change has direct implications for bettors and the sports betting market as a whole. Let’s better understand what this means.

How Normative Instruction on Online Betting Change Directly Affects the Sports Betting Market

The social contribution is a tax that applies to the lottery modality called “fixed-odds betting.” Thus, this modality is regulated by item IV-A of § 1º-A of article 30 of Law No. 13,756, of December 12, 2018.

Therefore, the contribution is calculated monthly and must be reported in the Federal Tax Debts and Credits Statement (DCTF), under the Social Contributions group.

The payment of the social contribution must be made by the 20th day of the month following the calculation. Therefore, payment is made through the Document for Federal Revenue Collection (Darf), with revenue code 9197.

If there is no banking business on the 20th, the payment deadline is postponed to the immediately subsequent business day.

The inclusion of the social contribution in the DCTF represents an important change for the sports betting market. It implies greater transparency and control over betting operations, which can contribute to the sector’s security and reliability.

Moreover, the change can also impact tax revenue, as the social contribution is a source of revenue for the government.

The new Normative Instruction comes into effect on the date of its publication in the Official Gazette of the Union. Therefore, it is important for bettors and companies in the sector to be aware of these changes and comply with the new rules.

Read more here

Need Help for Normative Instruction on Online Betting Understanding? We’re here to help. Send us a message and ond our consultants will talk to you!

Originaly posted by igamingbrazil.com by Paulo Cardoso

November 19, 2024
Restrictions On Financial Transactions In Brazilian Betting Sector
On April 18, 2024, the Brazilian Secretariat of Prizes and Betting of the Ministry of Finance (SPA/MF) published Normative Ordinance SPA/MF No. 615, with the general rules to be observed in payment transactions carried out by betting operators. Among these rules, there are several restrictions for the sector. The prohibitions established in this Ordinance are as follows:

See the main points of the restrictions on financial transactions in the brazilian betting:
1. Accepting financial contributions in cash.
2. Accepting financial contributions through payment slips.
3. Accepting financial contributions by check.
4. Accepting financial contributions through virtual assets or other types of crypto assets.
5. Accepting payments or transfers from an account that has not been previously registered by the
  bettor.
6. Accepting payments or transfers from third parties.
7. Accepting payments or transfers through credit cards or any other post-payment instruments.
8. Using any other electronic transfer alternative not provided for in the Ordinance.
9. Allowing bets to be placed without prior settlement of the electronic financial contribution transfer.
10. Providing advances, anticipations, bonuses, or prior advantages for placing bets.
11. Entering into partnerships, agreements, contracts, or any other arrangement to enable or facilitate access to credit or merchant funding operations by bettors.
12. Promoting or allowing access, through physical establishments or electronic channels, to individuals or legal entities that provide credit or carry out merchant funding operations for bettors.
13. Restricting the withdrawal of available financial balance from bettors.
14. Promising or granting compensation on the amounts held by bettors in their graphic accounts.
15. Using the resources of bettors held in transactional accounts to cover prizes or other expenses of the operator, except in specific cases provided for in the Ordinance.
To understand the Normative Ordinance, consult EGaming Services. You’ll find the best support for the iGaming business. Licenses, platforms, compliance, bank accounts, and various services to boost your business.

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November 19, 2024
New Financial Rules for Transactions In Brazil in the iGaming

The Brazilian Ministry of Finance has implemented financial rules for transactions in Brazil for sports betting and online gaming, so it could enhance security and transparency. Below are the main points of ordinance 615/2024:

Safety for Bettors

The regulation aims to safeguard Brazilian citizens participating in sports betting or online gaming by overseeing fixed odds betting operators nationwide.

Regulated Money Flow

The ordinance details the flow of money in bets authorized by the Ministry of Finance, from the transfer of funds to the payment of prizes.

Authorized Payment Methods

Transfers via PIX, TED, debit cards, or prepaid cards are allowed. However, funds must originate from the registered account with Bet. As a preventive measure against indebtedness, cash deposits, bank slips, cryptocurrencies, or credit cards are not accepted.

Prize Payment Deadline

Bets have up to 120 minutes after the conclusion of the sports event to pay out prizes to bettors. Therefore, they must be prepared for this.

Segregation of Funds

The regulation ensures the segregation of bettors’ and operators’ funds, preventing players’ funds from being used for operational expenses or operator debts.

Mandatory Financial Reserve

Authorized operators must establish a financial reserve of R$ 5 million. So, this reserve ensures payment of prizes and other obligations to bettors, especially during insolvency or illiquidity.

To access top-tier services in the igaming industry, visit EGaming Services. Speak with our consultants today to learn more.

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November 19, 2024

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