TLDR Brazil’s Ministry of Finance issued Ordinance SPa/MF No. 1,818 to regulate commercial lotteries and prize promotions. The rule targets companies running draws or contests without prior government approval. Violators face fines equal to 100% of the total value of prizes offered. Companies can lose their authorization or be banned from similar activities for three years. A new Commitment Agreement option lets companies settle disputes without a full legal process.
Brazil has introduced a new regulation aimed at controlling commercial lotteries and prize promotions across the country. The Ministry of Finance published the rule through the Secretariat of Prizes and Betting, known as SPa.
The regulation is called Ordinance SPa/MF No. 1,818. It focuses on stopping companies from running lotteries, draws, and promotional campaigns without government approval.
Under Brazilian law, businesses must get prior authorization before holding these kinds of promotions. The new ordinance strengthens how the government tracks and punishes companies that skip this step.
The rule also applies to broadcasting companies and civil society groups. If they run unauthorized draws or advertise them, they can face the same penalties as any other business.
Tough Penalties for Unauthorized Promotions
Companies caught breaking the rules will face steep fines. The penalty equals 100% of the total market value of the prizes offered during the promotion.
This means a company giving away prizes worth a large sum could owe an equal amount as a fine. The rule is meant to remove any financial benefit from skipping the approval process.
Beyond fines, companies risk losing their authorization to run future promotions. In some cases, they could be banned from holding similar campaigns for three years.
Most communication during these investigations will happen electronically. Companies under review generally have 30 days to respond once they are notified.
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