Brazil Implements Measures to Smooth Betting Certification

The Secretariat of Prizes and Betting (SPA) in Brazil has announced a set of new measures to address the ongoing issue of delays in certifying betting operators. As of January 14, 2025, Normative Instruction No. 3/2025 has been issued to streamline certification processes and resolve the problems that arose following the opening of Brazil’s regulated betting market at the beginning of the year.

The official opening of Brazil’s legal betting market occurred on January 1, 2025, allowing 14 operators to obtain full licenses, while an additional 52 were provisionally licensed. These provisional licenses were granted to operators who had fulfilled the requirement of paying a BRL 30 million licensing fee but were waiting for certification because of delays. These licenses offer operators an initial 30-day operational period, with the possibility of a further 30-day extension if needed.

The backlog in certification was primarily caused by high demand within Brazil’s betting market as well as the rigorous technical standards imposed on operators. This demand placed six laboratories, such as eCOGRA and Gaming Laboratories International (GLI), under considerable pressure to meet tight certification deadlines. To address this, the SPA’s new directive specifies standardized documentation and procedures to enhance the certification process's efficiency.

Detailed Guidelines Under Normative Instruction No. 3/2025

Operators who have been given provisional licenses are now required to submit technical certificates for their betting systems and servers by the deadline of January 30, 2025. These submissions need to be made through the Betting Management System (Sigap) in Brazilian Portuguese, complete with a General Index Document. Those who are only engaged in iGaming or sports betting have to provide certifications that are relevant to their specific operational activities.

For operators unable to finalize certifications by the January deadline, the SPA allows extensions upon receiving a declaration from their certifying bodies.

Additionally, starting from February 1, 2025, firms running online games and live studios will need to submit further certifications, such as the Online Games Index Document. Those who have full licenses must provide monthly updates on their certifications, provided there are changes to report. While these certification delays have proven challenging, the response from operators seems to understand the learning curve facing Brazil's regulatory bodies.

Andreas Bardun, the CEO of licensed operator KTO, articulated that the process was quite "stressful," due to frequent requirement changes, while also noting the SPA's supportive efforts during the holiday period.

Industry Critiques and Broader Implications

In the context of Brazil's regulated betting rollout, the National Association of Games and Lotteries (ANJL) voiced criticism against Nubank, a significant digital bank in Brazil, for warning customers against transferring money to gambling websites. These alerts were perceived by ANJL as violations of economic freedom and as discriminatory against the regulated betting sector. The criticism from ANJL, along with AIGAMING and ABRAJOGOS, highlighted that Nubank's warnings seemed to unfairly target licensed operators while overlooking illegal site transactions.

Plínio Lemos Jorge, ANJL president, stated, "It makes no sense that alerts are not activated for these illegal operators," advocating for equitable treatment within the legal economic activities. The associations also pointed out the inconsistency compared to other sectors such as alcohol and tobacco, calling for a deeper respect for Brazil's gambling regulations per Laws No. 14,790/2023 and No. 13,756/2018.

The introduction of Normative Instruction No. 3/2025 demonstrates Brazil's dedication to establishing a transparent and regulated betting industry. These licenses, with a validity of five years, allowing for the management of up to three betting brands, aim to safeguard consumer interests and uphold market integrity while ensuring compliance. As Brazil's gambling market continues to evolve, stakeholders anticipate further refinements to the regulatory framework. With proactive initiatives like addressing certification delays and emphasizing accountability, Brazil is set to position itself as a leader in the regional betting industry, fostering sustainable growth and trust among participants.

Source: Brazil Implements Measures to Ease Betting Certification Bottlenecks, lcb.org, January 16, 2025.

By GamesAndCasino