Brazil regulator invites states to discuss national betting system

The Secretariat of Prizes and Bets (SPA) has issued invitations to state politicians for an upcoming meeting intended to discuss the creation of a “national betting system.” This initiative aims to harmonize state regulations with federal gambling laws, enhancing the overall integrity and structure of Brazil’s burgeoning betting landscape.

Scheduled for Friday, April 4th, the SPA’s meeting will take place at the Ministry of Finance’s headquarters in Brasília, the capital city of Brazil. The primary objective is to bridge the regulatory gaps that currently exist between state-level gambling legislation and federal oversight, thereby establishing a cohesive strategy for the country’s betting framework.

Representatives from each Brazilian state have been invited to participate, with discussions anticipated to focus on three key topics regarding the formulation of a national betting system. This collaborative effort is seen as an essential step towards optimizing both compliance and regulatory alignment in Brazil’s newly regulated online betting market.

The SPA believes that instituting a national betting system would foster enhanced cooperation between federal and state governments. This, in turn, would support the consistent application of betting laws and regulations, ultimately benefiting the growth and sustainability of Brazil’s gambling industry.

According to the SPA, this proposed system aims to clarify federal regulations and establish best practices along with minimum standards for responsible gambling. Additionally, efforts to combat money laundering and match-fixing will be emphasized, ensuring a safer betting environment for consumers.

Conclusion of SPA Public Consultation

On March 27, the SPA concluded its public consultation period, soliciting feedback from industry stakeholders regarding its regulatory agenda for 2025-2026.

The full agenda is set to be released on Friday, with the proposed national betting system highlighted as the eighth priority project.

Regis Dudena, a leading figure at the SPA, previously emphasized the importance of continuous improvement in regulatory practices related to Brazil’s gambling sector. “We have established a comprehensive framework of principal regulations that are essential for the onset of the regulated fixed-odds betting market. However, regulation is not static; it requires ongoing assessment and enhancement,” Dudena remarked during the public consultation announcement in February.

“We are diligently monitoring the practical impacts of the regulations we’ve implemented, striving to identify areas for refinement,” he added.

Can a National Betting System Enhance State-Federal Relations?

A significant challenge accompanying the rollout of Brazil’s legal online betting market has been ongoing conflicts between the federal government and various state and municipal lotteries.

A prime example occurred recently with the Rio de Janeiro State Lottery (Loterj), which faced a significant setback as the Federal Supreme Court (STF) upheld a ruling that curbed Loterj’s ability to license operators across Brazil. This ruling affirmed a January decision by Minister André Mendonça that limited Loterj licensees to engaging in betting activities exclusively within the geographical confines of Rio de Janeiro, with mandatory geolocation tracking for compliance checks.

Additionally, the Solidarity party has proposed a temporary suspension of municipal lotteries pending a final STF ruling to ascertain their constitutional validity. Yet, the STF recently opted not to suspend these municipal operations while requesting further evidence from the Solidarity party to support its claims.

The attorney general’s office has also been called to provide its input, paving the way for the STF’s eventual resolution of this complex legal landscape.

As the discussions regarding a national betting system unfold, the industry keenly watches how these evolving relationships among federal and state entities will shape the future of Brazil’s gambling sector.