Betby Brazil

SPA places strict data command on Brazil Bets duties

Brazil maintains its schedule to launch its ‘Bets’ market, regulating online gambling activities as stakeholders are informed of IT security and platform requirements by the Secretariat of Betting and Prizes (SPA).

On Friday, the SPA published its second market ordinance related to IT system requirements that will be applied to the Bets market.

Prior to market launch, the SPA has been tasked with providing four market ordinances related to the critical disciplines of payments, IT security, crime prevention, and safer gambling duties. These ordinances are expected to be published by the end of July, for Brazil to launch the Bets market in 2024.

The second ordinance related to IT security details the SPA’s specific duties for preliminary provisions, technical requirements, and the supervision of IT technology systems. Additionally, the SPA outlines technical requirements that will be applied to online game suites and betting platforms.

On preliminary provisions, the SPA outlines the Bets market principal criteria to determine betting systems, platforms, IT security, data centres, and further critical components needed to operate online gambling activities.

Technical requirements mandate that operators must maintain the betting system and the respective data in data centres located in Brazilian territory.

Data related to IT systems can be located outside of Brazil; however, operators must ensure that relevant data is stored “in countries that have an International Legal Cooperation Agreement with Brazil, in civil and criminal matters jointly.” Data centres must be ISO 27001 compliant to operate within Brazil’s regulated environment.

Operators must ensure that the Ministry of Finance has secure and unrestricted access, both remotely and in person, to systems, platforms, and operational data.

Websites must use a ‘bet.br’ domain to host and offer their online gambling services to Brazilian consumers.

Customers must be notified of the use of cookies. Cookies necessary for online games will only function if the player accepts the cookie policy. Additionally, all cookies employed must be free of malicious code.

Prior to market launch, operators must ensure that betting systems and platforms have been certified by an approved agency. The SPA has announced GLI, eCOGRA, and BMM Testlabs as its authorised testing agents of the Bets market.

Individual requirements demand that operators submit an ‘evaluation report’ by certified agents within 90-days of the SPA publishing its ‘authorisation act’ for the Bets market to be activated.

Specific demands detail that Betting terminals must be connected to the operator’s system and follow customer id and payment transaction rules as mandated by law and the rules established by the Payments ordinance.

Online games must ensure that customers are informed of the “multiplication factor for the amount bet that defines the amount to be received by the bettor, in the case of a prize, at the time of placing the bet”.

Related to online casino games, the SPA detailed that “technical requirements of live game studios and online games to be observed by the certifying entities referred to in Ordinance MF/SPA nº 300, of 2024, will be defined in specific regulations.”

Completing its second phase of ordinances, the SPA will review further pre-market requirements needed to fulfil its duties to provide the legal certainty and efficiency of regulatory progress of Bets market, to ensure all technical criteria “for a stable and trustworthy betting environment in Brazil.”

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