Item 10: Ordinance SPA/MF NO. 1,231

Establishes rules and guidelines for responsible gaming and for communication, advertising, and marketing actions, and regulates the rights and duties of bettors and betting operators to be observed in the commercial exploitation of the fixed-odds lottery modality.

Throughout sixty articles, Ordinance SPA/MF No. 1,231/2024, dated 07/31/2024, establishes rules and guidelines on responsible gaming, advertising, the rights and duties of bettors, and the rights and duties of betting operators, which will be implemented starting January 1, 2025, regulating various topics that can be grouped as follows:

• Guidelines for Responsible Gaming: The Ordinance addresses the notion of responsible gaming, a concept previously used in laws and regulations, explicitly linking it to the prevention of gambling addiction and pathological gambling disorders. In this regard, there is a strong focus on preventive aspects, imposing several obligations on betting operators, such as: (i.) promoting and collaborating with educational campaigns; (ii.) establishing alert and prevention mechanisms for addiction risks; (iii.) developing a responsible gaming policy; (iv.) establishing technical mechanisms for users to adopt prudential limits related to elapsed time, financial loss, total deposited amount, and/or number of bets, as well as temporal limits (daily, weekly, monthly); (v.) ensuring temporary or permanent exclusion from the betting system; (vi.) analyzing data to identify potential high risks of addiction and pathological gambling disorders; (vii.) ensuring access to account information, detailing system usage, incurred losses, and available balance; (viii.) establishing mechanisms to prevent minors, problem gamblers, and individuals who may influence the outcome of the event from betting; among others.
• Advertising Actions: In line with the notion of Responsible Gaming, advertisements must use clear language and cannot (i.) suggest easy gain; (ii.) encourage excessive betting practices; (iii.) connect betting or not betting to positive or negative qualities; (iv.) link betting to financial or personal success or as a contributing factor to personal or social success; (v.) associate betting with illegal and discriminatory attitudes or behaviors; (vi.) include the participation of individuals who are or appear to be minors, as well as (vii.) be broadcasted in media or recorded in locations intended for the child and youth audience, among others. Additionally, advertisements must always contain an age restriction warning clause and information on the risks associated with addiction, written clearly, legibly, and proportionately to the rest of the piece. Advertisements that do not comply with the rules of the Ordinance may be canceled, removed, or made unavailable after notification of the betting operator by the Secretariat of Prizes and Bets.
• Rights and Duties of the Bettor: Among other rights, the Bettor must (i.) be able to bet freely, without coercion, and in a safe and responsible manner; (ii.) have easy and transparent access to customer service; (iii.) be informed of the fixed odds of offered sports events and online games; (iv.) be able to close their account in a simplified manner; (v.) freely adopt prudential limits. On the other hand, the Bettor is obliged to identify themselves by providing truthful data and inform the operator if they have any characteristic that prevents them from betting (e.g., being a minor; owner or representative of the betting operator; public agent with a role related to market regulation, control, and supervision, etc.).
• Rights and Duties of the Betting Operator: Among other rights, the Betting Operator may (i.) refuse, restrict, or limit bets to ensure compliance with the law; (ii.) refuse to register a bettor who does not accept the system’s terms and conditions or does not provide the necessary information for identification; (iii.) suspend user accounts when there is a founded suspicion of fraud, to be investigated in an internal procedure. On the other hand, the Betting Operator is obliged to (i.) ensure the faithful compliance with the Ordinance; (ii.) provide the bettor with the terms and conditions of their system; (iii.) fulfill their tax obligations and provide secure means for the bettor to make, maintain, check, and potentially receive prizes; (iv.) inform the minimum and maximum betting and prize payment amounts, as well as the calculation for the expected prize in case of multiple bets.
• Terms and Conditions and Privacy Policy: The Betting Operator must draft and maintain their Terms and Conditions for system use and their Privacy Policy, in a visible and accessible location.

The Corporate Law and M&A, Banking & Fintechs, Compliance, Public Law & Regulatory, and Consumer & Product Liability teams at Souto Correa are available to provide more information and clarifications on the matter.