On December 30, Law no. 14,790/2023 was enacted in Brazil, which aims to regulate the lottery modality of fixed-odds betting. The law seeks to regularize and oversees a significant area of betting, with potential economic impact, thus establishing measures to protect bettors and rules to prevent fraud and manipulation of results. Furthermore, the law determines that part of the resources collected is allocated to funds for education, health, and other social areas. The law came into force on the date of its publication.

Below, we outline the key points of the new legislation:

• it defines fixed-odd betting and brings changes to Laws No. 5,768/1971, 13,756/2018, and Provisional Measure No. 2,158-35/2001. It establishes important definitions, such as “bet”, “fixed odds”, “bettor”, “electronic channel”, “virtual bet”, “physical bet”, “real sports-themed event”, among others;
• Fixed odds bets will be operated in a competitive environment, with prior authorization from the Ministry of Finance, which has a discretionary nature and can last up to 5 years, subject to review;
• The operation is exclusive to legal entities, which must meet requirements such as proof of knowledge and experience in games and betting, and will be authorized by the Ministry of Finance through a specific procedure that includes the need for a grant fee payment;
• The law details the methods of placing bets (virtual and physical) and establishes rules for advertising and promotion of this lottery modality;
• The law establishes rules for payment transactions related to bets, including the prohibition of transactions with unauthorized entities and the exclusivity of Brazilian institutions to offer certain financial services;
• The law specifies who is prohibited from betting and ensures basic rights for bettors;
• The law establishes rules for the conduct of betting operators and the protection of bettors;
• The law details the method of prize payments and their taxation, including rules for the expiration of unclaimed prizes;
• The law sets rules for the supervision of betting activities;
• The law defines administrative infractions and their penalties, including fines and suspension of activities.
• The law clarifies that the fantasy sport activity (electronically played sports based on the performance of teams formed by at least two real individuals, where success depends mainly on the knowledge and skills of the players. The rules are predetermined, the prize is fixed and does not depend on the number of players, or the fees collected, and the results are not influenced by individual performances in real competitions) does not constitute the operation of a lottery modality and is exempt from public authority’s permission;
• Finally, the law makes amendments to other laws related to lotteries and supervision fees.
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