Brazil’s Ministry of Finance has taken steps to handle the certification bottlenecks that emerged because the nation’s regulated betting market launched on January 1, 2025. The Secretariat of Prizes and Betting (SPA) launched Normative Instruction No. 3/2025 on January 14 to streamline technical certification necessities and alleviate delays confronted by operators in the course of the software course of.
Certification Delays and Provisional Licenses
Brazil’s newly legalized betting market noticed important curiosity, with 113 corporations submitting functions earlier than the August 2024 deadline. Among these, 14 operators secured full licenses, whereas 52 had been granted provisional authorizations. These short-term licenses allowed operators to start actions whereas their functions had been finalized. Initially legitimate for 30 days, provisional licenses could be prolonged if certifying entities require further time to finish evaluations.
The SPA’s directive goals to resolve these delays by standardizing certification procedures and offering clear documentation tips. Operators should submit technical certificates for betting methods, sports activities betting servers, distant recreation servers, and different required paperwork by way of the Betting Management System (Sigap) by January 30. For operators unable to fulfill the deadline, an extension request supported by certifying entities have to be submitted.
Normative Instruction No. 3/2025 additionally launched a structured “Cover Page” format to enhance readability for certifications shared by a number of operators. Companies providing dwell studio-based video games should submit further certifications beginning February 1, whereas licensed operators should replace core paperwork month-to-month except no adjustments happen.
Operator and Industry Perspectives
The certification course of has confirmed difficult for operators because of evolving necessities and communication hurdles. Andreas Bardun, CEO of totally licensed operator KTO, described the method as “stressful,” noting that frequent adjustments to necessities created last-minute issues. Despite these challenges, Bardun acknowledged the SPA’s efforts to handle a posh regulatory rollout, highlighting their dedication over the vacation interval.
Thomas Carvalhaes, Brazil nation supervisor for Stake, emphasised the significance of collaboration between operators and regulators to refine the method. “Governments are not gambling specialists; we are. It’s crucial for operators to work with authorities to develop practical and effective regulations,” he stated.
Broader Implications for the Brazilian Market
The implementation of Instruction No. 3/2025 aligns with Brazil’s dedication to sustaining a clear and well-regulated betting business. Licensed operators can handle as much as three distinct manufacturers underneath every license, legitimate for 5 years. By addressing certification delays and enhancing regulatory readability, the SPA goals to help the business’s sustainable progress and curb unlawful playing.
Meanwhile, business teams such because the National Association of Games and Lotteries (ANJL) have raised considerations about practices undermining the regulated market. ANJL criticized Nubank, a distinguished digital financial institution, for issuing anti-gambling alerts throughout transactions to licensed operators. The affiliation argued that such measures violate ideas of financial freedom and unfairly goal a authorized business whereas failing to handle transactions with unlicensed websites.
ANJL president Plínio Lemos Jorge said, “It makes no sense that alerts are not activated for illegal operators. This worsens the situation instead of helping to strengthen regulation.” The affiliation urged respect for present laws and referred to as for equitable therapy of all authorized financial actions.
Brazil’s efforts to refine its betting certification course of mark a important step within the improvement of its regulated playing market. By addressing operator challenges and enhancing regulatory frameworks, the federal government goals to foster belief, guarantee compliance, and place Brazil as a pacesetter within the world betting business. Stakeholders stay optimistic that continued collaboration between regulators and operators will overcome preliminary hurdles and pave the best way for long-term success.
Sources:
Brazil regulator issues ordinance as temporary fix to betting certification delays, igamingbusiness.com, January 15, 2025.
