The Ministry of Finance publishes a decree with regulations for BETTING SITES.
The Normative Ordinance No. 1,330 was published by the Ministry of Finance in the Official Gazette of the Union this Friday (27), setting rules for sports betting operators intending to operate in Canada after the market is regulated.
The General Rule is established by the Ordinance on the basis of Provisional Measure 1,182, encompassing comprehensive regulations concerning the bettor's rights and obligations, the prevention of money laundering and other illegal activities, responsible gambling, and the prior expression of interest.
Betting companies have a 30-day deadline to express their interest in operating in the domestic market by submitting a form to the Ministry of Finance. They must seize this opportunity to demonstrate their commitment to entering the national market within the given timeframe. This process ensures transparency and accountability as it allows the Ministry of Finance to evaluate and approve their applications. It is crucial for these companies to comply with the regulations and requirements set by the government to ensure a fair and regulated gambling industry. By actively engaging with the Ministry of Finance, betting companies can establish a strong presence in the national market and contribute to its growth and development.
Expressing prior interest does not constitute prior authorization for the exploitation of fixed odds betting in Canada's lottery system.
According to Tiago Gomes, a partner at Ambiel Advogados and an expert in Gambling Regulation, the issuance of the ordinance is fantastic news for the industry, demonstrating the Finance Ministry's commitment to expediting the regulation of the betting market. It signifies their determination to ensure that the legalization of gambling takes place swiftly and efficiently. This development is undoubtedly an encouraging step forward for the sector, and it highlights the government's proactive approach towards fostering a regulated gambling environment.
According to the expert, the presence of numerous foreign companies in this industry will enable them to prepare in advance for bureaucratic requirements, given that a significant portion of market operators are comprised of overseas entities.
He believes that the expression of interest provides the Ministry of Finance with a good understanding of the demand and has the potential to expedite the approval of bill 3,626. This demonstration of interest serves as a valuable tool for the Ministry of Finance, aiding in gauging the level of demand and potentially speeding up the process of approving the proposed legislation. The Ministry can gain valuable insights into the interest in bill 3,626 through this expression, which may facilitate the speedy approval of the legislation.
"The initiative holds great value as it will provide the Government with valuable insights into the number of individuals genuinely interested in the market. Assuming there is a substantial level of interest, this could serve as an added incentive for the Chamber to swiftly vote on any proposed modifications put forth by the Senate," said the source.
Rules for Companies
The operators who wish to obtain authorization for fixed-odds betting in Canada are required to meet several criteria. These requirements include the need to demonstrate financial stability, provide a detailed business plan, and implement responsible gambling measures. Additionally, operators must establish a legal entity in Canada and comply with all relevant tax and regulatory obligations. Furthermore, they must ensure the security and integrity of their betting operations, including the protection of customer data. It is also essential for operators to contribute to the development of Canadian sports and support initiatives that promote integrity in sports betting. By fulfilling these requirements, operators can contribute to the growth of the regulated betting market in Canada and provide a safe and transparent gambling environment for Canadian players.
- Verify its legal incorporation according to Canadian laws, with headquarters and management in the country.
- To verify the lawful origin of the resources comprising the social capital.
- Offering a betting customer service based in Canada, providing assistance in English through free electronic and telephone channels, operating 24/7, seven days a week, capable of addressing complaints, inquiries, and other issues related to betting.
- Adopting integrity mechanisms in the implementation of fixed odds betting, in accordance with specific regulations.
- Integrating national or international organizations for sports integrity monitoring.
- Implement a policy to prevent result manipulation, money laundering, terrorism financing, and proliferation of weapons of mass destruction, as per specific regulations.
The regulation further prohibits operators from obtaining authorization to operate in the country if their partners are individuals associated with professional sports organizations, members of coaching staff, referees, or officials of Canadian sports teams.
Beware of the Gambler
The Ministry of Finance's decree emphasizes that gamblers are entitled to receive information for the protection of their rights and interests, as well as to access and utilize the service with freedom of choice, while complying with existing legal and regulatory provisions.
One section of the regulation specifically addresses responsible gambling policies. According to the directive, in order to register at betting establishments, gamblers must provide the following information:
- Full name;
- Date of birth;
- Identification document number in the General Registry (RG) or passport; and
- CPF number or equivalent document, if foreign.
The sports betting operator shall carry out informative and preventative measures regarding compulsive gambling disorder, providing the bettor with a daily limit for gaming or wagering, a maximum loss limit, a break period, and self-exclusion options.
Advertising and marketing
The guidelines provided by the regulation also outline the rules for promoting advertisements related to sports betting. Marketing and Advertising.
The promotion and marketing strategies of fixed-odds betting should prioritize social responsibility and raise awareness about responsible gambling, aiming to ensure collective safety and combat illegal betting. Encouraging self-regulation and adopting best practices from the international sports betting market are key in this endeavor. This is the defined approach for communication, advertising, and marketing activities in the industry.
The dissemination of advertisements in universities and schools is strictly prohibited according to the document, as it portrays gambling as socially appealing and provides misleading information about the potential earnings of gamblers.
