The recently announced ordinance in Brazil clarifies the process for transferring the bettors’ funds and data as the regulated market prepares to launch in the coming weeks.
Normative Ordinance No. 1,875 that was published in the Official Gazette of the Union on November 26, introduces new rules for managing and transferring player data and funds to licensed operators before the regulated market launches on January 1, 2025.
Bettors will need to consent to the migration of their accounts and data once the operators are licensed, and this process will involve using facial biometrics for identity verification and registering an active bank account with a payment institution authorized by the Central Bank of Brazil.
If a bettor decides to decline the transfer of their funds to a licensed platform or if the operator they use fails to secure a license, their funds must be returned by December 31.
The process for transferring bettors’ data and funds in Brazil
To transfer player data to their licensed operations, the companies must submit a formal request to the SPA by December 13. The request must be signed by the same legal representative who submitted the company’s license application and can only be made after the regulator accepts the BRL 30 million (£4.1 million/€4.9 million/$5.2 million) license fee.
The SPA will have 15 days to review and decide on the request, and this period can be extended by another 15 days if additional information or clarification from the operator will be required.
Companies must provide a list of participating bettors, each of whom must give consent for their funds and data to be transferred to the newly licensed platform. What refers to bettors, they will have until March 31, 2025, to either withdraw their funds from the unlicensed platform or to approve the transfer to the licensed operator. However, starting from January 1, 2025, users will be unable to place bets or access an operator’s services until their data and funds have been migrated.
Any unclaimed funds remaining after June 30, 2025, will be allocated to national charities, the Student Financing Fund (Fies), and the National Fund for Public Calamities, Protection, and Civil Defence (Funcap).
Players have until March 2025 to access and withdraw their funds from unregulated operators
Companies that fail to secure authorization to operate in Brazil’s legal market will not be permitted to transfer player funds and data. And similary, entities that do not request or receive approval for fund transfers will be banned from doing so.
Such companies must transfer bettor funds to a deposit or payment account previously registered by the player. If it is not feasible, bettors can be refunded via the most recent bank account they used with the operator during the October to January transition period. If this also fails, the company must attempt to contact the bettor to obtain details for a bank account with an institution authorized by the Central Bank by March 31, 2025.
The SPA may request information from companies unable to return funds to bettors for monitoring, as well as oversight purposes. The companies that fail to comply could face sanctions.
