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After intense market anticipation, the Secretariat of Prizes and Bets of the Ministry of Finance (the “Regulator”) clarified today a crucial requirement regarding the corporate structure necessary for obtaining authorization for fixed-odds betting operators in Brazil, especially those that are subsidiaries of foreign companies. The clarification focuses on the interpretation of the current legislation, which requires that Brazilians hold at least 20% of the share capital of the operator company.
The Regulator specified:
“The requirement set forth in subsection IX of § 1 of Article 7 of Law No. 14.790, of 2023, which mandates that a Brazilian be a shareholder holding at least 20% of the share capital of the applying legal entity, can be met by the participation of both natural Brazilian persons and Brazilian legal entities. A Brazilian legal entity is defined as one established under Brazilian laws and having its headquarters and administration in the country.”
Our legal team at Bichara and Motta Advogados are attentively monitoring the regulation of the betting industry in Brazil, offering legal advice to multiple market participants. For further information, please visit: www.bicharaemotta.com.br