The Secretary of Awards and Betting of the Ministry of Finance announced new guidelines regarding the payments of fixed quota bets. One of the most notable changes was the prohibition of granting bonuses to bettors by betting companies, a common practice to attract customers. GMB consulted several sector expert lawyers to learn their opinion on this regulation and how it may affect the market.
According to the new regulation, betting operators will not be able to offer advances, bonuses, or previous advantages, whether for promotion, dissemination, or advertising, to encourage betting.
In addition, the norm prohibits payment by credit mode, accepting only Pix, debit, TED, or prepaid. The maximum deadline for prize payment is 120 minutes after the end of the bet event.
Another requirement established by the ordinance is that companies maintain a reserve of R$ 5 million to guarantee the payment of prizes and other obligations to holders.
What was prohibited to the operator according to the norm:
“Grant, in any form, advance, anticipation, bonus, or previous advantage, even if merely for promotion, dissemination, or advertising, for the realization of bets”.
The opinion of experts on the measure is divergent. While some see it as protection for the bettor, others believe it can harm the regulated market, favoring unlicensed operators.
The lawyer Fernanda Meirelles, partner at FAS Lawyers, says that “the legislator's intention is clear in prohibiting the granting of bonuses and advances to bettors, as it was insistently said by the Federal Government throughout the regulatory process that one of its missions would be the protection of the bettor, consumer of this service.”
Meirelles analyzes: “On the other hand, understanding the market and the volatility with which a bettor today adheres to a specific platform and tomorrow to another, it also seems reasonable that such companies use mechanisms to attract and maintain their audience. And one of these mechanisms is, undoubtedly, the offering of ‘entry bonuses’”.
For Luiz Felipe Maia, from MAIA YOSHIYASU Lawyers, “acquisition bonuses and other previous advantages are prohibited. I understand that the law and the ordinance allow loyalty programs and other advantages after the user's registration. What I understand to be prohibited is conditioning the benefit to registration or deposit.
For Ricardo de Paula Feijó, from Feijó Souza Lawyers and partner of apostahub.com.br, “the law and the Ordinance prohibit the granting of previous bonuses to players. However, there are no rules dealing with bonuses given to the player who is already betting,” he says. “This can be regulated by the Ministry of Finance. It is necessary to consider the protection of the player, but also to preserve some important advertising tools for the operators, always seeking a balance in the regulation.”
In the opinion of Udo Seckelmann, head of gambling and crypto at Bichara & Motta Lawyers, “I believe this should be a matter to be dealt with directly by the regulator, not by the legislator. Such prohibition is detrimental to the regulated market, as licensed operators in Brazil will not be able to offer bonuses for acquiring new customers, while unlicensed operators will continue using such mechanisms to attract bettors to the parallel market.”
“It is important to note that the prohibition of the law refers to bonuses and advantages prior to the bettor, so eventual customer loyalty and retention strategies that are not ‘previous’ would be allowed. It will be up to the licensed operators to explore new ways to acquire customers given the imposed limits,” concludes Seckelmann.
For Guilherme Sadi, lawyer, partner at Morishita Lawyers, ”the prohibition of Bonuses may bring uncertainty for the companies that will be regulated in Brazil, since those that will not be regulated will continue to practice these actions in the black market, and because of this, it is necessary for the State to supervise, to avoid the reduction of revenue of the regulated companies due to possible unfair competition in the Betting market”.
“The prohibition of Bonuses established by the Payment Methods Ordinance represents a significant change in the Betting market in Brazil, and although it may bring challenges for the Betting companies, it also offers opportunities to promote a more responsible gaming environment for the bettors”.
Source: GMB
