In a bold new move, Brazil’s Secretariat of Prizes and Betting (SPA) has unveiled a novel plan to streamline the betting certification process. The change comes amid complaints of delays. It’s a game-changer for the industry.
The introduction of Normative Instruction No. 3/2025 on January 14, 2025, marks a significant effort by SPA to address certification bottlenecks. This regulation aims to simplify processes and help operators who have been waiting eagerly for full certification. Let’s take a closer look at what this means for Brazil’s burgeoning betting landscape.
Brazil Opens Its Legal Betting Market
Brazil’s betting market took a significant step on January 1, 2025, when it fully licensed 14 operators. Meanwhile, 52 others received provisional authorization, a temporary fix for the certification delays.
Provisional licenses required operators to pay a hefty BRL 30 million fee. Despite these costs, many businesses saw the potential rewards and took the leap.
Due to the overwhelming interest, these provisional licenses were necessary to keep the market moving. Businesses had a 30-day operational window, extendable if needed.
Certification Backlogs and Challenges
Certification delays were no small issue. Interest surged while the market’s strict requirements made things tougher.
Six laboratories, including big names like eCOGRA and Gaming Laboratories International (GLI), rushed to keep up with tight deadlines. For many operators, the wait for approval was agonizing.
SPA’s new directive aimed to standardize documentation, hoping to ease the burden and make the process more efficient.
Operators’ Duties and Deadlines
Operators with provisional licenses had urgent tasks. They needed to submit technical certificates for various systems by January 30, 2025.
Using Brazil’s Betting Management System, Sigap, submissions needed to be in Portuguese. That added a layer of complexity that no operator could ignore.
Certifications had to fit the specific type of operation, be it iGaming or sports betting.
Extension and Compliance Flexibility
SPA showed some leniency for operators who couldn’t meet deadlines.
Declarations from certifying entities allowed companies to extend their time frame.
Starting February 1, 2025, more requirements came into play. This included additional certifications for online games and live studios.
Industry Perspectives and Adjustments
Regulatory hiccups were seen as part of the learning curve. Some industry leaders took the changes in stride.
Andreas Bardun, CEO of KTO, found frequent changes stressful, but noted SPA’s effort over the holidays.
Thomas Carvalhaes from Stake emphasized a need for cooperation. Operators’ insights were valuable in refining regulations.
Banking Alerts and Industry Reaction
Nubank, a major digital bank in Brazil, stirred controversy by warning customers moving money to gambling sites.
The National Association of Games and Lotteries (ANJL) argued these warnings violated economic freedom.
They felt the alerts unfairly targeted legal operators while ignoring unlicensed sites.
Legal and Ethical Concerns
ANJL highlighted that warnings weren’t issued for other vices like alcohol or tobacco.
This, they claimed, was discriminatory against the betting sector especially when all operations were legal and regulated.
Respect for Brazil’s laws under No. 14,790/2023 and No. 13,756/2018 was demanded by operators.
Normative Instruction No. 3/2025 Impact
The new regulation allowed operators to manage up to three brands for five years.
It’s a step toward transparency and accountability, welcoming ongoing improvements in the regulatory framework.
Brazil’s commitment aims to protect consumers’ interests and maintain trust.
Looking Forward in Brazil’s Betting Scene
SPA’s active steps in handling certification issues have positioned Brazil as a competitive market leader.
With continued efforts, growth is sustainable, setting a high standard for others to follow.
Meanwhile, operators can now breathe a little easier with clear guidelines in place.
Brazil’s investment in a well-regulated market is already reaping rewards. As changes take shape, they promise a thriving and fair betting environment for everyone involved.
