Brazil Tightens Rules on Prize Promotions

Brazil’s Ministry of Finance has published a new ordinance aimed at increasing oversight of commercial lotteries, prize promotions and activities involving the early collection of public funds. The measure focuses on preventing unauthorized promotional campaigns and strengthening enforcement against operators that fail to obtain the required government approval.

Issued by the Secretariat of Prizes and Betting (SPA) as Ordinance SPa/MF No. 1,818, the regulation establishes procedures for monitoring commercial lotteries, prize draws and promotional campaigns carried out without prior federal authorization.

The ordinance also reinforces the requirement that promotional activities comply with the conditions and objectives approved by the authorities.

Stricter Penalties for Unauthorized Promotions

Under the new rules, companies, broadcasting license holders and civil society organisations that organise prize promotions without federal approval may face significant administrative penalties.

The ordinance states that offenders may be fined an amount equal to 100% of the total market value of the prizes offered in the promotion.

In addition to financial penalties, authorities may revoke an organisation’s authorisation to conduct promotional activities or prohibit it from carrying out similar campaigns for up to three years.

The regulation also establishes that most communications during administrative proceedings will be handled electronically, with organisations generally receiving 30 days to submit their response.

Commitment Agreement Introduced

The ordinance introduces a Commitment Agreement as an alternative mechanism for resolving administrative cases before a first-instance enforcement decision is issued.

Through this process, organisations under investigation may reach an agreement with the authorities without completing the full sanction procedure.

To qualify, the organisation must immediately stop the activity under review, correct any identified operational issues, compensate for any potential damage where applicable and pay the required amount into Brazil’s National Treasury Single Account.

While the agreement suspends the administrative enforcement process during its execution, it does not prevent any related criminal investigation from continuing where applicable.

Focus on Greater Regulatory Clarity

The new ordinance forms part of Brazil’s broader effort to strengthen oversight of prize promotions and commercial lottery activities.

By defining compliance procedures, enforcement measures and available settlement mechanisms, the Ministry of Finance aims to provide greater regulatory certainty while offering organisations a formal pathway to resolve administrative matters when appropriate.