SPA forced to authorise seventh betting company by court order

The Secretariat of Prizes and Bets (SPA) has been compelled by court order to permit a seventh company to engage in online betting in Brazil, following a recent Federal Court ruling.

Federal judge Sergio Wolney de Oliveira Batista Guedes has issued a preliminary injunction that mandates the SPA to authorize Atlantis Comercio Eletrônico e Software House Ltda, along with its brands MetBet, EsportivaBet, and MetGol 100%. This move marks a significant development in Brazil’s evolving online gambling landscape.

According to reports from BNLData, Atlantis believes it has received provisional authorization that will allow for operational adjustments during the designated adaptation period from October 1 to December 31, 2024. This provisional authorization follows the company’s timely application submitted ahead of the August 20 deadline, which was set for the initial preference window.

By applying before the deadline, Atlantis ensured that its request would be processed prior to the launch of Brazil’s regulated online market on January 1 of this year. Notably, the judge highlighted that the SPA only communicated with Atlantis regarding a request for additional documentation on January 17. Consequently, Atlantis’s initial application was not processed by the December 31, 2024 deadline.

As per the court’s ruling, Atlantis is now provisionally authorized to offer online betting services until its license application is fully evaluated.

Court Rulings Facilitate Operation of Seven Betting Companies in Brazil

This recent ruling expands the operational landscape in Brazil, with a total of seven companies and 19 brands now authorized to conduct online betting through court orders. Additionally, the market is home to 14 fully licensed operators, alongside 56 entities that have secured provisional authorization.

Among the brands currently cleared to operate while awaiting formal license assessments are notable names such as Sportsbet.io, MegaPix.bet, and Aposta Online. Perhaps the most prominent operator sanctioned by court order is Esportes Gaming Brazil, which oversees the brands Esportes da Sorte and Onabet.

Esportes da Sorte previously faced allegations of illegal operations within Brazil after the SPA’s transition period elapsed on January 1, leading to the rejection of the operator’s license application due to its association with ‘Operation Integration.’ This investigation linked the company to illegal gambling activities and money laundering, resulting in the arrest of its owner, Darwin Henrique da Silva Filho, and his wife.

However, a Federal Court injunction issued in January referenced Article 5 of Brazil’s Constitution, emphasizing that “no one shall be considered guilty before the criminal conviction becomes final and unappealable.” Given that no criminal convictions have been rendered against Esportes da Sorte thus far, the Federal Court has approved the company’s request for nationwide operational authority. The court ruling also ensures the SPA cannot impose additional regulatory barriers to its operations absent a secured conviction.

As the Brazilian online gambling market continues to evolve, these court decisions play a crucial role in shaping a landscape that balances regulatory compliance with operational opportunities for online betting companies. Stakeholders are encouraged to remain informed about licensing developments to navigate this rapidly changing environment effectively.