Between July 27 and September 9, the Secretariat of Prizes and Bets (SPA) will hear from the gaming sector in Brazil regarding the rules for betting authorization.
This is because the SPA has opened a public consultation to define the rules for authorizing fixed-odds betting.
The idea is to hear from both individuals and legal entities on the topic before officially releasing new rules for betting authorization. Contributions can be made through the Brasil Participativo website.
Contributions will be analyzed by the SPA
According to the publication released in the Federal Official Gazette (DOU) on July 22, all submissions gathered through the public consultation on betting authorization rules will be analyzed by the SPA.
However, as determined by the text published in the DOU, the analysis conducted by the SPA will follow Article 31 of Decree No. 12,002, of April 22, 2024.
This means the Secretariat is not obligated to respond to each contribution made by individuals or legal entities in the country’s iGaming sector.
Furthermore, the SPA may disregard repetitive submissions or those unrelated to the topic, and may also group similar submissions by operators, associations, and citizens.
After the analysis, the SPA must publish a consolidated document with the suggestions and comments received, in accordance with the access to information law.
New stage for betting authorization
The public consultation opened by the SPA comes at a highly relevant moment. More than a year after the licensing requirement for operating in Brazil took effect, regulation is entering a new stage.
After all, the ordinance should establish criteria for obtaining a license, something crucial for operators and investors in the sector.
It can also be expected that the SPA will include rules for game suppliers and make adjustments to expand regulatory control.
For example, requirements related to compliance programs, responsible gaming, and anti-money laundering measures may become stricter.
The changes imposed on betting advertising may also be addressed by the new licensing rules, as well as more robust oversight mechanisms.
The detailed definition of authorization rules can reduce regulatory disputes and bring greater predictability for investors interested in the Brazilian market.
Even while still under discussion, the new rules for betting authorization may reduce regulatory disputes.
If they turn out to be too strict, they could make it harder for smaller companies to operate, favoring mergers, acquisitions, and market exits.