Esportes da Sorte receives authorisation to operate in Brazil

Esportes da Sorte Secures Authorization for Fixed-Odds Betting Operations in Brazil Following Federal Court Injunction

On January 22, the Secretariat of Prizes and Bets (SPA) made a significant announcement in the Official Gazette of the Union, granting Esportes da Sorte, a subsidiary of Esportes Gaming Brazil, the authorization to operate fixed-odds betting across Brazil. This development follows a Federal Court injunction that allows for the company’s national presence under its brands, including Esportes da Sorte and Onabet.

Esportes da Sorte’s inclusion in the federal regulatory framework is a critical milestone, particularly after the Federal Court of the Federal District issued an injunction earlier in January. This ruling was pivotal as it provided the company with national operational rights despite its initial possession of only a state lottery license from Loterj.

In a formal response, Esportes da Sorte expressed that this ruling emphasizes the company’s adherence to Brazilian gambling regulations, including the obligation to remit its licensing fees for participation in the regulated market. “The decision affirms that from the outset, we have complied with all legal and regulatory procedures mandated by the legislation and its respective ordinances,” the company stated, reflecting its commitment to regulatory compliance.

Is Uncertainty Over for Esportes da Sorte in Brazil?

The path for Esportes da Sorte has been fraught with challenges. In September, the company’s owner, Darwin Henrique da Silva Filho, and his spouse were apprehended during ‘Operation Integration,’ a crackdown focusing on allegations of money laundering and illegal betting operations. Despite maintaining their innocence, the subsequent exclusion from the SPA’s authorized operators list initially hindered the company’s attempts to launch legitimate betting activities, rendering their operations illegal during the designated legal launch window from October 1 to December 31.

Following the acquisition of controlling shares in ST Soft, a Loterj-licensed entity, Esportes da Sorte regained its standing and was subsequently readmitted to the SPA’s approved operators’ list. However, the expiration of SPA’s transition period in December resulted in another setback, as Esportes da Sorte faced removal from both the list of 14 full licensees and the 52 entities granted provisional authorization ahead of the market’s launch on January 1.

Compounding this situation, the SPA had initially denied Esportes da Sorte a request for operational clearance, citing the allegations associated with Operation Integration. Yet, it is critical to highlight that Article 5 of Brazil’s Constitution asserts, “no one shall be considered guilty before the criminal conviction becomes final and unappealable.” With no criminal convictions currently in place, the Federal Court subsequently validated Esportes da Sorte’s request for nationwide operational certification. This ruling prevents the SPA from imposing further barriers to the company’s operations in the absence of a legal conviction.

Esportes da Sorte reaffirmed its position, stating: “The grounds for our initial rejection were deemed illegal by the federal court, particularly as we have fulfilled our licensing fee obligations. Our website will soon transition to the new domain Esportesdasorte.bet.br, marking our entry into the regulated market.”

This landmark ruling not only bolsters Esportes da Sorte’s business strategy but also reinforces the evolving landscape of the Brazilian gambling industry, which continues to adapt to regulatory changes and market demands. The company’s resilience and proactive approach serve as a testament to the potential within Brazil’s burgeoning betting market.