SBC News Voice of the Sports Betting Industry
The launch of Brazil’s federal online gambling market is nearing its final stages, as the government has published technical ordinances to authorise online casino games and live gaming studios.
Yesterday, the Secretariat of Prizes and Betting (SPA), the department that will serve as the federal gambling authority of Brazil, submitted Ordinance No. 1,207 to the government.
The document outlines technical requirements for operating online games and live game studios as required by Law No. 14.790 (Betting Law) – which constitutes the regulatory framework of the Brazil Bets Market.
New ordinances are further required to amend rules and criteria related to fixed-odds games supplied by lottery operators prior to the Betting Law.
Significantly, the SPA provides its legal interpretations for the online criteria of multiplier systems, table games, fixed-odds games, live studio games, multi-player games, and fantasy sports. As such, the SPA provides two annexes to break down key requirements for online and live games.
Online Game Requirements
The SPA’s document outlines the technical and operational requirements for online games, focusing on the player interface, game mechanics, payout calculations, and the integrity of game operations.
Online games must ensure that outcomes are determined randomly via a return-to-player (RTP) multiplier system. The RTP of each online game must be clearly displayed to the customer, along with the conditions for achieving it.
Licensed operators must ensure that online games maintain an RTP of at least 85% over their playing cycle.
Game Classification details that online and multi-player games, such as ‘Crash’, must be promoted as games of chance and randomness and cannot be marketed as games based on skill.
Live Studio Rules
The ordinance establishes specific guidelines for live gaming studios, which are defined as physical environments that utilise live video transmission technology to provide real-time gaming experiences to remote players. These studios must be integrated with the betting system, allowing players to interact directly with live dealers and participate in games as they happen.
Live Game Interaction: Live studios are required to facilitate real-time interaction between players and dealers. This interaction must be seamless, ensuring that players have an experience similar to what they would have in a physical casino setting.
Technology and Equipment: The technology used in live studios, including video streaming equipment, must meet specific quality standards to ensure clear and uninterrupted broadcasts. This includes high-definition video feeds and reliable internet connections to prevent disruptions during gameplay.
Compliance and Certification: Like online games, live studio games must be certified by an entity recognised by the SPA. These certifications must confirm that the live studio meets all technical requirements and that the games are conducted fairly and transparently.
Training and Conduct of Dealers: Dealers operating in live studios must undergo training to ensure they understand the games and can interact professionally with players. The ordinance may also include requirements regarding the conduct and presentation of dealers during live broadcasts.
Compliance Certifications
All online games, including those operated by local and international companies, must be certified by an entity recognised by the SPA. These certifications must be valid throughout the entire authorisation period and updated with any significant changes to critical components, such as those that could affect player rights or operator revenues.
Certificates must be issued specifically for Brazil by certifying entities authorised by the SPA. If operators use third-party technologies to provide online games, they must obtain an integration certificate between the platforms.
As outlined in its ordinance on licensing criteria, the SPA has appointed GLI, eCOGRA, and BMM Testlabs as its authorised testing agents for the Bets market.
Game Reporting Duties
Betting companies must submit a report assessing compliance with technical requirements within 90 days of obtaining certification. This evaluation process must be conducted annually, with necessary documentation submitted to the SPA within five business days of report completion. All information must be retained and accessible for at least five years.
Exclusions from Fixed Odds Betting
The ordinance explicitly states that games of skill, fantasy sports, multi-bettor games, and peer-to-peer betting do not qualify as fixed-odds online betting games. These categories require separate regulations and are not covered by the current ordinance.
Onto Phase-4… The Final Ordinance
By outlining clear guidelines for certification, compliance, and game operation, including specific rules for live studios, the Brazilian government aims to create a safe and fair environment for online gambling consumers.
As it stands, the SPA has published three-of-four technical ordinances related to the launch of the Brazil Bets’ regulatory framework, covering IT security disciplines, licensing accreditations, payment transactions, AML (Anti-Money Laundering) measures, and game requirements.
The launch of Bets requires the government and SPA to settle on the terms of the Phase-4 ordinances on “Responsible Gambling and Social Purpose.”
The final ordinance will cover the subject of “Regulation of actions aimed at promoting responsible gambling, regarding the measures, guidelines, and practices to be adopted to prevent pathological gambling disorder in the context of fixed-odds betting, rules for monitoring and preventing bettors from getting into debt, and supplementing the rules for responsible advertising.”
The SPA had scheduled to complete all technical ordinances (IT, payments, game authorisations) by the end of July, to allow the government to launch the Bets market by the end of 2024. At present, no update has been provided for Ordinance-4 on safer gambling duties.
