Seven operators suspended by SPA, Pixbet saved by courts
Of the seven operators whose licenses were suspended by the Secretariat of Prizes and Bets (SPA) this past Friday, three have already been reinstated, including the prominent operator, Pixbet.
This suspension was a direct result of these operators’ failure to submit mandatory security assessment reports for their betting systems, as required by Brazil’s regulatory authority. The SPA’s action underscores the critical importance of compliance within the gambling industry, particularly in maintaining player safety and securing the integrity of the gaming economy.
Regulatory Compliance: The Backbone of Security in Gambling
According to Article 8 of Normative Ordinance No. 722, which outlines technical requirements for betting systems, operators must present an evaluation report within 90 days of receiving their license. This report must be issued by a certifying entity recognized by the regulatory body. Such stringent measures are in place to mitigate risks associated with gambling, including a potential environment for money laundering.
The SPA has made it clear that non-compliance with these reporting requirements poses significant risks, not just to individual bettors but also to the broader financial ecosystem. The ramifications of continued non-compliance could initiate a sanctioning process, accompanied by daily fines reaching BRL 40,000 (approximately $6,960) for those who ignore the stipulated guidelines.
Current Status of Suspended Operators
As of now, the list of suspended operators has been reduced to four. EA Entretenimento e Esportes and Bet.Bet Soluções Tecnológicas SA have communicated to the SPA that they have submitted the required documentation, while Pixbet secured a reinstatement through a favorable court decision. The remaining operators with suspended licenses include:
- Bell Ventures Digital Ltd – abet.bet.br
- Betesporte Online Betting Ltd – abet.esporte.bet.br, lancedesorte.bet.br
- Logame do Brasil Ltd – lider.bet.br, geralbet.bet.br, b2x.bet.br
- Sortenabet Gaming Brasil SA – sortena.bet.br, betou.bet.br, betfusion.bet.br
Pixbet’s Recovery: A Case Study in Legal Recourse
In April, Pixbet faced a similar suspension from the SPA due to its failure to present essential technical certifications for its betting systems. Remarkably, the suspension lasted less than a day, as federal court Judge Anderson Santos da Silva intervened to revoke the SPA’s decision. This swift legal action illustrates the critical interplay between regulatory frameworks and judicial oversight in the gambling sector.
During the proceedings, Pixbet articulated that the initial suspension was both “illegal and disproportionate,” claiming significant reputational and economic harm, particularly concerning its BRL 470 million master sponsorship of Flamengo—a leading club in Brazil’s top-flight football league.
In both instances of suspension, Pixbet’s legal team expedited the review process to ensure the company could resume operations before Flamengo’s next scheduled match. In this latest instance, Judge Leonardo Tavares Saraiva acknowledged the “periculum in mora”—the “danger in delay”—and granted a preliminary injunction, thereby allowing Pixbet and its affiliated brands, Flabet and Bet dá Sorte, to continue operations.
Legal Perspective: Balancing Compliance and Business Continuity
Legal expert Fabio Ferreira Kujawski weighed in on Pixbet’s situation, asserting that such suspensions should be reserved for severe, repeated infractions of Brazilian law. “Prior to suspension, alternative measures should be employed—such as warnings or fines,” Kujawski asserted. “Suspension should be a matter of last resort.”
This situation highlights the importance of not just regulatory compliance, but also the need for operators to maintain solid legal support, enabling them to navigate the complexities of the gambling landscape. As the sector continues to evolve, understanding the intersection of compliance, legal frameworks, and market strategy will be essential for all stakeholders.
