How to obtain authorization for fixed odds betting in Brazil

The fixed odds betting market is one of the fastest growing areas in Brazil in recent years. With regulation and the possibility of operating this type of betting legally, many companies and individuals want to know more about the authorization process.

We will go through the main steps and requirements so that you can understand how authorization to operate in the fixed odds betting market in Brazil works.

What is a Fixed Odds bet?

Fixed odds betting is a type of betting in which the punter knows, at the time of placing the bet, how much their possible winnings will be if they get the result right. This format is widely used in sports, lotteries and other competitions, and has gained a lot of prominence on the Brazilian scene, especially since the market was regulated.

Who can apply for authorization?

To legally operate fixed odds betting in Brazil, the interested company needs to be registered in the country and meet a series of requirements set by the government. It is important to note that individuals cannot apply for authorization - only legal entities are allowed to operate this type of activity. In addition, the company must have a corporate purpose compatible with the betting service, as well as having its fiscal and tax obligations up to date.

Application process

The authorization process is conducted by The Ministry of Finance's Bureau of Prizes and Gambling. The interested company must follow these steps:

1. Gather the necessary documentationThe documentation includes proof of tax compliance, negative debt certificates, proof of domain registration and the company's articles of association.
2. Send the requestThe application must be sent through the system provided by the Prize and Betting Office, following the guidelines and standardized forms.
3. Pay the fees dueThe company must pay an analysis fee, the amount of which can vary depending on the size and complexity of the request.

Analysis time

The time it takes to analyze the application can vary, but generally, the process can take a few months to complete. The Office of Prizes and Betting reviews all documentation, verifies compliance with legal requirements and assesses the company's financial and technical capacity to operate in the fixed odds betting market.

Main requirements and obligations

Once the authorization is granted, the company must comply with a series of obligations in order to keep the license. The main responsibilities include:

Once the authorization is granted, the company must comply with a series of obligations in order to keep the license. The main responsibilities include:

• Ensuring the security and protection of punters' dataIt is essential to implement systems that ensure the confidentiality and integrity of customer information.
• Reporting regularly to the governmentThe company must send regular reports on its activities, turnover and betting volume.
• Comply with anti-money laundering regulationsImplement policies and procedures that prevent the use of betting as a means for money laundering or other illicit activities.

Outsourcing services

Many companies operating in the fixed odds betting market choose to outsource certain activities, such as payment processing, customer service and marketing. However, it is important to note that the authorized company remains ultimately responsible for all services provided, even when outsourced. It is therefore essential to choose partners who also comply with Brazilian legislation.

CNAE and domain registration

In order to operate regularly, the company must be registered with the Cadastro National Economic Activities (CNAE) with the specific code that covers betting activity. In addition, it is mandatory to register the site's domain in Brazil, with a ".br" extension, ensuring that the company is identified as a Brazilian entity.

Appeals and penalties

If the authorization is denied, the company has the right to appeal. The appeal must be submitted within the established deadline and must contain all the information and justifications for the re-evaluation of the application.

Penalties for companies that operate without authorization or that fail to comply with the obligations laid down by law can include heavy fines, suspension of activities and even withdrawal of authorization. It is therefore crucial that the company remains compliant with the law at all times.

Read more: São Paulo regulates ISS for sports betting

Advantages of legal authorization

Obtaining authorization to operate in the fixed odds betting market in Brazil brings a number of benefits, such as:

• Credibility and securityGamblers feel more confident betting with authorized companies, which can result in a higher volume of bets and, consequently, more profit.
• Legal protectionThe authorized company has the legal security to operate without the risk of being penalized or closed down for illegal activity.
• Access to partnershipsMany companies and institutions prefer to partner only with regulated companies, which can open doors to new business and opportunities.

The importance of the CLM Controller in the authorization process

If you're thinking of obtaining a fixed-odds betting license, having a specialized accounting firm is essential. A CLM Controller is a reference in accounting services in Brazil, offering complete support for companies wishing to operate in this sector. They help with fiscal, tax and legal compliance issues, ensuring that your company is properly structured for the fixed-odds betting market.

Conclusion

The regulation of fixed odds betting in Brazil represents an excellent opportunity for companies wishing to invest in this market. However, it is essential to understand and comply with all the legal requirements in order to obtain authorization and operate safely and profitably. If you want to enter this segment, start preparing the documentation and familiarize yourself with the requirements to ensure that your authorization process is successful.