When discussing the regulation of online games in Brazil, it is common for all modalities to be grouped under the "fixed-odds betting" umbrella. However, Ordinance SPA/MF No. 1,207/2024 makes clear that certain modalities do not fall within that regime and therefore receive different legal treatment.
What is fixed-odds betting?
In the fixed-odds lottery modality, the bettor knows, at the moment of placing the bet, exactly how much they could win if their prediction is correct. The prize amount is defined by the odds or multiplication factor applied to each unit wagered. The result is determined by a future random event: such as the score of a football match: or by a random number generator.
Modalities not classified as fixed-odds betting
According to Art. 3, sole paragraph, of Ordinance SPA/MF No. 1,207/2024, the following do not qualify as "virtual fixed-odds betting online game events":
1. Skill Games Results determined predominantly by the participant's mental or motor skill: dexterity, strategy, intelligence, knowledge. Chance may be present but is not the predominant factor. Examples: online chess tournaments, quiz games.
2. Fantasy Sports Virtual contests based on the real performance of athletes or persons, with pre-defined rules, where the prize is independent of the number of participants or total amounts wagered. Requires statistical analysis, strategy and knowledge. Examples: virtual team formation based on actual football league rounds.
3. Multiplayer Games Modalities where one player's performance is influenced by the actions and results of other participants. Examples: online card or board games with player interaction.
4. P2P Betting The operator does not directly offer the game but provides the environment for bettors to play against each other. The operator's revenue comes from a commission on winning bets. Examples: online P2P poker platforms.
The key distinction
While fixed-odds betting depends predominantly on chance with pre-defined prize odds, games outside that regime are based on skill, strategy, interaction or direct player confrontation.
Licensing implications
Games listed in Art. 3, sole paragraph of the ordinance then analysed: skill games, fantasy sports, multiplayer and P2P games: were described as not classified as fixed-odds betting under that instrument. Classification is product-specific and can change with later instruments, enforcement practice and judicial interpretation. Some market commentary has labelled certain skill or P2P products as tolerated; that label is not a licence, not a universal safe harbour, and should not be treated as a free pass to operate. A product-level legal analysis against current SPA/MF materials and applicable law is required before any licensing conclusion.
This article is historical analysis of the ordinance posture as published. It is not current licensing advice.