Esportes da Sorte and Reals added to SPA’s approved list

Esportes da Sorte and Reals Join the Approved Operators List Ahead of Brazil’s Licensed Betting Market Launch

The Brazilian regulatory landscape for online gambling is evolving rapidly as the Secretariat of Prizes and Bets (SPA) has welcomed Esportes da Sorte, owned by Esportes Gaming Brazil, and Reals to its roster of licensed operators. This addition enables these companies to continue providing their gambling services in the transitional period ahead of the fully licensed betting market launch slated for January.

With this latest approval, the total number of operators allowed to maintain their business activities during this transition rises to 98, comprising a significant 217 brands authorized to operate between October 1 and December 31. This dynamic environment reflects the Brazilian government’s commitment to regulating its burgeoning online gambling market effectively.

According to announcements from the SPA, the inclusion of Esportes Gaming Brazil and its associated brands—Esportes da Sorte and Onabet—stemmed from a court order it secured after initially being omitted from the SPA’s approved list. Following this development, Esportes Gaming bolstered its operational capabilities by acquiring controlling shares in ST Soft, a technology platform licensed by the Rio de Janeiro State Lottery regulator (Loterj).

However, Loterj is currently entangled in legal battles regarding the extent of its jurisdiction. The agency contends it has the authority to grant state licensees federal approval to operate nationally, a stance that conflicts with arguments made by the attorney general’s office, which narrowly interprets its mandate to apply only within Rio de Janeiro. This significant case was recently escalated to the Supreme Federal Court on October 14.

Reals, with its brands—Reals, Ux, and Netpix—also received approval to continue operations through at least December 31, enhancing their position in the competitive Brazilian gambling market.

Esportes da Sorte’s Inclusion: A Case of Compliance and Controversy

As reported by UOL, Esportes da Sorte proactively contacted the SPA to advocate for its inclusion in the initial approvals roster, believing it had satisfied all requisite conditions for operation, including having applied for a legitimate betting license.

Despite this, Esportes da Sorte is currently subject to an ongoing investigation concerning its owner’s alleged involvement in illegal gambling and money laundering. The operator’s owner was arrested in September alongside individuals connected to VaideBet and Zeroumbet during ‘Operation Integration,’ a sweeping crackdown on illicit gambling activities in Brazil.

VaideBet and Zeroumbet have yet to achieve approval from the SPA, with the latter embroiled in one of several lawsuits filed against the SPA concerning their exclusion from the register. Notably, Zeroumbet’s ownership issue is tied to a broader criminal case involving its owner, Deolane Bezerra, prompting the company to assert its exclusion is unjust. The SPA, in turn, maintains this decision is made to safeguard consumer interests.

The fallout from Esportes da Sorte’s initial exclusion was swift, resulting in Brazilian football club Athletico Paranaense suspending its sponsorship agreement with the operator. The club cited a need for clarity regarding the legality of Esportes da Sorte’s operations and has since removed the company’s branding from its uniforms and stadium advertisements.

Conversely, Athletico Paranaense’s fellow Campeonato Brasileiro Série A competitor, Corinthians, has publicly expressed support for Esportes da Sorte, reaffirming its confidence in the operator’s compliance with contractual obligations. Corinthians announced its intention to seek clarity on the ongoing regulatory process while continuing its partnership: “Sport Club Corinthians Paulista reaffirms its trust in Esportes da Sorte, our sponsorship partner, which has been fully complying with the contract,” the club stated on its website.

As the regulatory landscape continues to evolve and improve in Brazil, the successful navigation of these complexities will be pivotal for operators seeking to thrive in the competitive and expanding online gambling market.