Brazil Implements Measures to Ease Betting Certification Bottlenecks

The Secretariat of Prizes and Betting (SPA) in Brazil has taken action to address ongoing delays in the certification of betting operators. On January 14, 2025, SPA issued Normative Instruction No. 3/2025, aiming to streamline certification processes and mitigate issues that emerged after the launch of the country’s regulated betting market earlier this year.

Provisional Licensing and Certification Challenges

Brazil’s legal betting market officially opened on January 1, 2025, granting full licenses to 14 operators while provisionally authorizing 52 others. Provisional licenses were provided to operators that had paid the BRL 30 million license fee but were awaiting certification due to delays. These licenses allow businesses to operate for an initial 30-day period, extendable by another 30 days if necessary.

The certification backlog stems from the overwhelming interest in Brazil’s betting market and the stringent technical requirements imposed on operators. Six laboratories, including eCOGRA and Gaming Laboratories International (GLI), have faced pressure to complete certifications within tight deadlines. To alleviate this, the SPA’s latest directive standardizes documentation requirements and certification procedures, enhancing the efficiency of the process.

Key Requirements Under Normative Instruction No. 3/2025

Operators holding provisional licenses must submit technical certificates for their betting systems, sports betting servers, or remote gaming servers by January 30, 2025. These documents, submitted through the Betting Management System (Sigap), must be in Brazilian Portuguese and include a General Index Document. Operators solely offering iGaming or sports betting are required to submit certifications specific to their operations.

For operators unable to complete certification by January 30, SPA allows for an extension, provided they submit a declaration from their certifying entity. Starting February 1, 2025, companies offering online games and live studios must also file additional certifications, including the Online Games Index Document. Fully licensed operators must submit monthly updates to their certifications unless there are no changes.

Industry and Operator Reactions

While the certification delays have posed challenges, many operators view this phase as part of the learning curve for Brazil’s regulatory authorities. Andreas Bardun, CEO of licensed operator KTO, described the application process as "stressful," citing frequent last-minute changes in requirements. However, he acknowledged the SPA’s commitment, noting their efforts over the holidays to support operators.

Thomas Carvalhaes, country manager for Stake, emphasized the importance of collaboration between the government and industry stakeholders. “No licensing process is perfect from the outset. It’s crucial for operators to provide insights and help educate the regulators,” he said, advocating for a cooperative approach to improving the system.

ANJL Criticism of Banking Practices

Amid the rollout of regulated betting, the National Association of Games and Lotteries (ANJL) criticized Nubank, a prominent Brazilian digital bank, for issuing warnings to customers transferring funds to gambling sites. These alerts suggested customers "save their money" instead of betting, a move ANJL claims violates economic freedom and discriminates against the regulated betting sector.

ANJL, alongside AIGAMING and ABRAJOGOS, argued that Nubank's warnings unfairly target licensed operators while ignoring transactions with unlicensed sites. "It makes no sense that alerts are not activated for these illegal operators," said ANJL president Plínio Lemos Jorge, highlighting the need for balanced treatment of legal economic activities.

The associations also questioned why similar warnings were not issued for transactions related to alcohol or tobacco, sectors known for social and health impacts. They called for respect for Brazil's gambling regulations, established under Laws No. 14,790/2023 and No. 13,756/2018, and urged fair treatment for the legalized betting industry.

Broader Implications for Brazil’s Gambling Market

Normative Instruction No. 3/2025 reflects Brazil’s commitment to creating a transparent and well-regulated betting industry. Licenses, valid for five years, allow operators to manage up to three betting brands, or “skins.” These measures aim to protect consumer interests and maintain market integrity while ensuring compliance among operators.

As Brazil’s gambling market matures, stakeholders expect ongoing refinements to the regulatory framework. The SPA’s proactive steps, such as addressing certification delays and emphasizing accountability, position Brazil as a leader in the regional betting industry, fostering sustainable growth and trust among players and operators alike.

Source:

Brazil regulator issues ordinance as temporary fix to betting certification delays, igamingbusiness.com, January 15, 2025.