Brazil SPA facing lawsuits from operators left of approved list

Brazil’s Secretariat of Prizes and Bets (SPA) is currently facing significant legal challenges, with at least eight lawsuits filed by operators who have been excluded from its list of accredited businesses.

In early October, the SPA published a list identifying 89 operators that were deemed legal and eligible to continue operations within Brazil from October 1 to December 31. This list comprises entities that either applied for a betting license or were already functioning within the grey market before the SPA’s crucial September 30 deadline. As of now, the register has expanded to include 96 operators and 210 associated brands due to several updates made throughout the month.

In a decisive follow-up to the approved list, the SPA announced the blocking of 2,040 betting sites that it now categorizes as illegal. This effort includes prominent players in the industry, such as Betfred and BoyleSports, and is being executed in collaboration with the National Telecommunications Agency (Anatel).

This initiative represents a broader government strategy to curtail illegal betting activities in anticipation of the launch of a regulated market set for January 1, 2025.

However, the list has sparked considerable discontent among companies who feel unjustly excluded. Notably, Esportes da Sorte applied for a federal betting license yet was omitted from the SPA’s approved list.

In response, Esportes da Sorte successfully secured authorization from the Rio de Janeiro State Lottery regulator (Loterj), enabling it to continue operations at a state level. The company achieved this milestone by acquiring controlling shares in ST Soft, a firm licensed by Loterj.

Reports from Folha indicate that the SPA, which operates under the Ministry of Finance, is now facing at least eight federal court lawsuits from operators contesting their exclusion from the approved list. These companies remain unable to operate legally until the formal launch of the regulated market and the acquisition of federal approval.

Zeroumbet Among the Lawsuits Against the SPA

Zeroumbet has emerged as a notable contender among the operators filing lawsuits against the SPA, claiming that its exclusion from the approved list is unjust. The company submitted its federal betting license application to the SPA on August 20.

However, Zeroumbet is currently embroiled in an ongoing federal investigation dubbed ‘Operation Integration,’ which addresses issues related to illegal gambling and money laundering, alongside other companies including Esportes da Sorte and Vaidebet.

Zeroumbet contends that the investigation targets its founder, Deolane Bezerra, rather than the company as a whole. Bezerra, a lawyer and influential figure on social media, was arrested in September on charges of laundering illicit gains from illegal gambling through Zeroumbet, which was established in July with the explicit intention of seeking a federal betting license.

“In this context, the entity liable for the violations should be Deolane Bezerra, not the company itself,” the legal documents cite Folha. The report also outlines that the SPA rejected Zeroumbet’s federal application as a precautionary measure to safeguard bettors.

This developing scenario underscores the complexities and evolving landscape of Brazil’s gambling regulatory framework, reflecting both the challenges faced by operators and the government’s commitment to establishing a secure and transparent betting environment.