Betting operators without the funds to return bettors’ balances following the ban on bets will be able to use the R$5 million financial reserve required for their license, as long as they are authorized by the Secretariat of Prizes and Bets (SPA).
The rules are set out in SPA/MF Normative Instruction No. 32, published on Tuesday (10) in the Federal Official Gazette. The rule is part of the measures adopted following Provisional Measure (MP) 1,394, of September 25, which banned betting in Brazil and revoked the authorizations of companies that operated in the regulated market.
Only for the bettor
The reserve was created by Ordinance SPA/MF No. 615/2024 as a consumer protection guarantee and was one of the conditions for operating legally in the country. Under the new rule, the amount can only be used to reimburse balances.
According to the Ministry of Finance, the reserve cannot be used to pay for company expenses, such as salaries, taxes, administrative costs, or expenses related to shutting down operations.
To request use of the reserve, the operator will have to submit to the SPA the information and documents proving the amounts owed, and will be held accountable for the accuracy of the data.
After the secretariat’s review and authorization, the funds will be transferred to Caixa Econômica Federal, which will make the payments to bettors.
What’s left over goes back to the company
The normative instruction also defines the fate of any remaining amounts. Once reimbursements are complete, the company may request the release of the remaining amount, provided it proves there are no more outstanding balances.
According to the Ministry of Finance, the goal is to ensure that the reserve is used “primarily to protect bettors and guarantee the return of amounts owed,” with clear rules for its use and release.
One more withheld amount
In practice, the rule acknowledges that not all operators will have the cash on hand to return customers’ money after suddenly losing their revenue in Brazil.
For companies, the reserve is only returned once pending issues with bettors have been resolved, and it adds to the licensing fees of up to R$30 million paid for licenses, the return of which is prohibited under the MP.
In a statement previously sent to NEXT.io, the Ministry of Finance stated that the revocation of the licenses was due to “reasons of public interest” and does not entitle companies to a full or partial refund of the amount paid.
The ministry added that the obligations to report information to the SPA remain in effect.
Lawyers in the sector dispute this interpretation. According to José Frederico Cimino Manssur, partner at Natal & Manssur Advogados and a specialist in betting regulation, there is a basis for returning the portion of the licensing fee corresponding to the period during which companies were prevented from operating.
“The State opened the market, regulated the operation, and received the licensing fees while that regime was in effect,” he told NEXT.io.
The dispute is before the Federal Supreme Court (STF). Since November 9, a ruling by Justice Luiz Fux has suspended lawsuits nationwide against the MP in lower courts, until the Court rules on the four direct actions of unconstitutionality against the measure, which still have no scheduled date. In Congress, the MP has until March 4, 2027 to be voted on.