Fantasy Sports are not considered gambling under Brazilian legislation

The Brazilian gambling legislation is from 1941. The prohibition of gambling in Brazil is done by decree/law number 3,688/1941, which considers gambling to be a misdemeanor. According to this bill:

"Art. 50. To establish or exploit gambling (games of chance) in a public place or accessible to the public, by means of payment of entry or without it:

Penalty - simple imprisonment, from three months to one year, and fine, from two to fifteen contos de reis.

Paragraph 3. Gambling (Games of chance) is considered:

A) the game in which winning or loosing depends exclusively or mainly on luck;

B) betting on horse racing outside of a racetrack or where they are authorized;

C) bets on any other sports competition.”

It is possible to see, then, that the definition of gambling is stablished by paragraph 3rd of the quoted article 50.

Letter "A” provides about the general definition. According to it, Gambling is considered the games in which winning or loosing depend mainly or exclusively on luck. Letter "C” prohibits Sports Betting, giving this activity the status of Gambling as well.

So, in a nutshell, most Gambling types will fit under the definition of letter "A” of the paragraph 3th of article 50 of the decree/law number 3,688/1941(like bingo and casino card games, for example). However, games that do not depend exclusively or mainly on luck should not fit under this definition, and, therefore, should not be prohibited and not considered to be a misdemeanor.

Since Fantasy Sports are considered to be a skill game, similar to Poker and others, it is not, therefore, a game in which the result depends exclusively or mainly on luck, but on the skills and strategy of the people who play them.

Also, Fantasy Sports should not be considered Sports Betting, because of the way it is done, and because, like explained, it is a skill game, similar to Poker; inclusive on the form it is played.

So this is why Fantasy Sports can not be considered to be Gambling under the current Brazilian legislation.

Therefore, it is understood that there is no criminal provision for Fantasy Sports under the misdemeanor bill, in both possibilities – Gambling under the general definition and Gambling under Sports Betting.

Because of the above, certainly, soon the players of such modality of skill game will have at theirs disposal many options for Fantasy Sports tournaments in Brazil.