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Brazil regulator suspends operator licences for negligence of tech duties

The Secretariat of Prizes and Betting (SPA) has undertaken its strictest enforcement to date, concluding a week of regulatory upheavals around Brazil’s nascent online gambling marketplace.

Closing May, on Friday the SPA suspended the licences of seven operators active in the Brazil Bets regime. The action was taken due to the firm’s failure to submit mandatory “cybersecurity evaluation reports” within the required timeframe, as stipulated by Article 8 of Ordinance SPA/MF No. 722/2024.

The suspension affects several high-profile domestic betting brands, including PixBet the principal sponsor of Flamengo FC, and BETesporte the sponsor of the state football championships of Sao Paulo (Paulista) and Rio de Janeiro (Carioca).

The SPA has ordered a temporary suspension of the online platforms of the seven operators that will be placed under a compliance review. The full list of suspended operators and their respective brands includes:

  1. Bell Ventures Digital Ltda – brand: BandBet
  2. Bet.Bet Soluções Tecnológicas S.A. – brands: Bet.Bet, DonaldBet
  3. Betesporte Apostas On Line Ltda – brands: BETesporte, Lance de Sorte
  4. EA Entretenimento e Esportes Ltda – brands: Bateu Bet, HanzBet, Esportiva Bet
  5. Logame do Brasil Ltda – brands: LíderBet, GeralBet, B2xBet
  6. PixBet Soluções Tecnológicas Ltda – brands: PixBet, FlaBet, Bet da Sorte
  7. SorteNaBet Gaming Brasil S.A. – brands: SorteNaBet, Betou, BetFusion

The suspended brands are now barred from offering bets, accepting deposits, or onboarding new users in Brazil until they provide cybersecurity certification in line with SPA’s technical standards.

In a statement, the Ministry of Finance said the enforcement seeks to “safeguard the integrity of the regulated environment and protect Brazilian consumers by ensuring that all licensed operators can prove the cyber-resilience of their operations.”

SPA confirmed that sanction proceedings have begun. Continued non-compliance could trigger daily fines of R$40,000 and further penalties, including permanent licence revocation.

SBC Noticias Brazil engaged with legal experts who noted the significance of the action, given the popularity and commercial footprint of brands like PixBet and BETesporte.

Tax lawyer Kamilla Yazawa stated: “This represents a pivotal moment in Brazil’s regulation of online betting. Operators must recognise that the SPA is enforcing with full legal weight behind its policies.”

Senate moves on gambling restrictions  

The enforcement concludes a month of escalating regulatory measures, including tighter compliance conditions, cyber controls, and integrity standards for operators.

Meanwhile, Brazil’s Senate last week approved Bill 2,985/2023, which aims to impose a federal framework to govern gambling advertising as a distinct legislative category outside the Bets regime.

The Brazilian Institute for Responsible Gaming (IBJR) has warned the restrictions could drive consumers toward unlicensed markets. Over 50 football clubs have also raised concerns that the proposed changes could slash sponsorship income by R$1.6bn annually (approx. $285m) threatening financial stability and exposing clubs to potential litigation over breached commercial contracts.

However, the Bill carries overwhelming support in the Senate, with many legislators believing that gambling advertising should be subject to unique oversight due to the escalating influence of gambling sponsorships on football, concerns over youth exposure, and concern that sports integrity being damaged by excessive gambling advertising. 

Given the bill’s potential impact on the gambling and sports industries, it is anticipated that the Chamber will address it in the coming months. However, until an official schedule is announced, the exact date of the vote remains uncertain.

Though regulatory evaluations are yet to be concluded, on Friday the SPA sent a clear cut message to Bets licences reminding them that “compliance is non-negotiable” – a warning that the regulator stated it would uphold since the Bets’ launch on 1 January 2025.

Update – the Brazilian government has now updated its webpage stating that only four licences have been suspended. These are:

  1. Bell Ventures Digital Ltda – bandbet.bet.br
  2. Betesporte Apostas On Line Ltda – betesporte.bet.br, lancedesorte.bet.br
  3. Logame do Brasil Ltda – lider.bet.br, geralbet.bet.br, b2x.bet.br
  4. Sortenabet Gaming Brasil S.A. – sortenabet.bet.br, betou.bet.br, betfusion.bet.br.

 

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