The Normative Ordinance outlines regulations surrounding financial management, payment methods, and operational standards for betting platforms.
The Normative Ordinance No. 615 establishes regulations in payment transactions conducted by authorized agents.
Brazil has just set a new milestone in its betting operation landscape, that aims to improve the transparency and security in betting operations. On April 16th, 2024, Brazil’s Ministry of Finance issued the Normative Ordinance No. 615, which sets new regulations for payment transactions conducted by authorized agents.
The Normative Ordinance outlines regulations surrounding financial management, payment methods, and operational standards for betting platforms.
We’ve broken down the key points recently introduced below:
1. Account Types
The Normative Ordinance has defined the following account types to operate in the betting scene:
- Registered Account: A deposit or prepaid payment account held by the bettor at a financial or payment institution authorized by the Central Bank of Brazil. It serves as the source for depositing funds and the destination for receiving prizes and making withdrawals associated with the bettor’s transactions with the operating agent.
- Graphical Account: A virtual account provided by the operator, allowing bettors to manage their bets and financial resources. This account history shall be kept for at least 36 months.
- Betting Platform Operational Account: The operator’s free-moving deposit or prepaid payment account, used for operational expenses and liquidity management.
- Transactional Account: The betting platform operator’s account for holding bettors’ funds related to open bets or prize payments.
2. Payment Regulations
Establishes regulations for payment transactions and authorized payment methods:
- Payment transactions: Must be conducted through electronic transfers between the bettor’s registered account and the operator’s transactional account.
- Allowed payment methods: Includes Pix, TED transfers, debit cards, prepaid cards, and transfers within the same institutions.
- Prohibited payment methods: Includes cash, payment slips, checks, cryptocurrencies, unregistered account transfers, third-party payments, credit cards, and any non-specified electronic transfer methods.
3. Operator Restrictions
Operators are prohibited from accepting bets without prior settlement, offering credit facilities, or providing any form of credit-based betting incentives like bonuses or promotional benefits.
Partnerships or interactions with credit providers are also strictly forbidden to prevent indirect credit access for betting activities.
4. Exclusive Use of Transactional Accounts
Transactional accounts are to be offered and managed only by institutions authorized by the Central Bank of Brazil. The funds must be separated from the operator’s assets and protected against misuse or legal actions against an operator. Operators must also ensure the total balance in the transactional account equals all bettors’ available financial balances, plus the value of open bets.
These regulations ensure that bettor funds are securely managed and protected from any potential misuse or insolvency issues faced by operators.
5. Liquidity Management and Financial Reserves
Operators are required to maintain a financial reserve of at least BRL 5M (approx. EUR 1M) to cover bettor prizes and obligations. This reserve should be kept in federal public securities, separated from transactional and other accounts, and only used with regulatory approval.
6. Contractual and Compliance Obligations
All service contracts with financial institutions must clearly stipulate adherence to these regulations, ensuring all involved parties comply with the new legal framework.
7. Implementation Timeline
The prohibitions outlined in Law No. 14,790 of 2023 will take effect six months following the publication of the regulations. This provides a transitional period for operators to adjust to the new regulatory environment.
This ordinance represents a significant advance in the regulatory landscape for betting in Brazil, enhancing the integrity and reliability of betting operations. Betting platforms and financial institutions must comply with these regulations in order to provide security and transparency for bettors in their transactions.
As the implementation unfolds, all parties involved must stay informed and prepared to align with the evolving legal requirements, ensuring a smooth transition into this new regulatory scene.
