Two more operators taken off SPA suspended list

The Secretariat of Prizes and Bets (SPA) has reinstated five operator licenses, having received the requisite technical documentation from the respective companies. The initial suspensions were enacted last Friday due to compliance issues.

On Friday, the SPA suspended the licenses of seven operators after they failed to submit mandatory security assessment reports for their betting systems. This crucial documentation is intended to ensure compliance with regulatory standards and mitigate risks associated with gambling operations.

As of Monday, the SPA reinstated the licenses of Logame do Brasil Ltda and Sortenabet Gaming Brasil SA, which had promptly filed their technical reports with the regulator. This decision reaffirms the SPA’s commitment to maintaining industry standards while balancing operational viability.

According to Normative Ordinance No. 722, published last year, operators are required to submit an evaluation report of their betting systems to the SPA. This report must be issued by recognized certifying entities and submitted to the regulator within 90 days of receiving initial licensing approval. Adhering to these guidelines is crucial for ensuring the integrity and security of online betting platforms.

EA Entretenimento e Esportes and Bet.Bet Soluções Tecnológicas SA were among the first to submit their reports last week, shortly after the suspension list was made public. Additionally, a federal court granted a preliminary injunction for Pixbet, allowing them to reinstate their license due to their vital role as the primary sponsor for Flamengo football club. Given the legal implications surrounding sponsorship by unlicensed brands in sports, the judicial intervention underscores the importance of timely compliance in the industry.

Currently, only Bell Ventures Digital Ltda and Betesporte Online Betting Ltda remain suspended, which allows Logame do Brasil’s LiderBet, GeralBet, and B2xBet brands, as well as Sortenabet’s SorteNaBet, Betou, and BetFusion, to continue their operations unhindered.

Evaluating the Fairness of SPA License Suspensions

Historically, the SPA has acted decisively, previously suspending the licenses of four operators in April for similar compliance failures. Among those was Pixbet, which, following a federal court ruling, also had its license reinstated.

Legal expert Fabio Ferreira Kujawski voiced concerns regarding the fairness of these license suspensions, suggesting that the SPA’s actions reflect a “certain lack of dialogue and understanding” between the regulator and the industry. “In our view, the suspension of the authorization was a disproportionate response to the infraction committed,” Kujawski stated, emphasizing the need for a more nuanced approach.

Kujawski believes the SPA should assert authority over Brazil’s gambling market appropriately but must also maintain a judicious balance. He argued, “This cannot translate into an agency that applies sanctions in a disproportionate manner or adopts an inquisitorial stance against the sector it regulates.”

Striking this balance is essential for fostering both regulatory compliance and a thriving gambling market. “I am convinced that the SPA will find this right path,” he concluded, reflecting the industry’s hope for a collaborative regulatory environment that encourages growth while safeguarding consumer interests.