Joint Technical Note SEDCON-RJ and SENACON/DPDC/MJSP: Inspection guidelines for consumer defense authorities in the betting market

The National Consumer Secretariat (“SENACON”) and the Rio de Janeiro State Department of Consumer Protection (“SEDCON-RJ”) published last Monday a joint technical note that consolidates guidelines and recommendations for the fixed-odds betting market in Brazil.

This guiding and supervisory document aims to ensure consumer protection, operational integrity, and regulatory compliance, given the accelerated development of the betting industry in Brazil.

The technical note recognizes that the relationship between bettors and fixed-odds betting operators is fully governed by the Brazilian Consumer Defense Code (CDC). The document describes the regulatory framework that applies to this market, particularly Laws No. 13,756/2018 and 14,790/2023, and the Ministry of Finance and the Ministry of Sports ordinances that provide for authorization and operation requirements, advertising rules, pathological gambling, data protection, and inspection procedures.

The technical note lists the primary obligations and focal points that companies must comply with, such as:

• Authorization and legitimacy: Operators must obtain a valid authorization, be headquartered and managed in Brazil, operate under a “.bet.br” domain, and keep registration data up to date and readily available.
• Responsible gambling: Companies must implement measures to prevent pathological gambling, such as self-exclusion, session timeout, spending limits, educational campaigns, and addiction risk warnings.
• Advertising and marketing: Ads must not target minors, associate betting with easy wealth gains, debt solutions, or social climbing, and grant prior advantages or bonuses. All advertising must be easily identifiable and include age restriction notices and must not target school environments or spaces attended by minors.
• Joint liability in third-party advertising: Operators will be jointly liable for advertising campaigns run by third parties, such as digital influencers. As such, they must ensure that ads are transparent and provide information on gambling risks.
• Data Protection: Operators must comply with the Brazilian General Data Protection Law (LGPD), obtain informed consent for processing personal data, and implement security measures.
• Financial transactions: Top-ups and cash-outs must occur exclusively through electronic transfers between accounts owned by the bettor and the operator. As such, using cash, payment slips, checks, cryptoassets, or third-party accounts is not allowed. Bettors’ funds must be kept separate from the company’s assets.
• Customer service: Operators must structure customer service and ombudsman channels in compliance with regulatory requirements, available in Brazilian Portuguese 24/7 and integrated into the consumidor.gov.br platform.
• Compliance and prevention against wrongdoing: Companies must implement internal controls to prevent money laundering, fraud, and results manipulation, including strict verification of bettors’ identity.

In order to steer the National Consumer Defense System’s inspection, the technical note provides the “CONSOLIDATED TABLES WITH FIXED-ODDS BETTING OPERATORS’ OBLIGATIONS” in its Annex 1, and the “FIXED-ODDS BETTING MARKET MONITORING AND INSPECTION CHECKLIST FOR BRAZILIAN CONSUMER PROTECTION BUREAUS (PROCONS)”.

As a result, this checklist is expected to steer the inspection procedures by consumer defense authorities. Although this is not mandatory, companies should verify this checklist thoroughly to ensure that internal proceedings and policies comply with regulatory requirements and prevent potential administrative penalties.

Complying with the checklist and the measures above is essential to mitigate regulatory, reputational, and legal risks, ensuring that fixed-odds betting operators operate sustainably and legitimately in the Brazilian market.

Demarest’s Dispute Resolution team is monitoring the matter and remains available to provide any necessary clarifications.