On July 31, Brazil's Official Gazette of the Union published the highly anticipated Normative Ordinance No 1,207, establishing clear technical requirements for obtaining an online betting license. This significant development is expected to spur increased interest and applications from operators, given the comprehensive regulations now in place. With less than three weeks remaining in the initial 90-day application window, only five applications have been submitted so far, but this number is anticipated to rise sharply as the regulatory framework becomes clearer.
Key Regulatory Changes
The publication of Normative Ordinance No 1,207 marks a crucial step in Brazil's efforts to regulate the online betting industry. The ordinance introduces several important regulations that will shape the landscape of online gaming in the country. Among the key updates:
Prohibition of Credit Cards and Cryptocurrencies: The ordinance bans the use of credit cards and cryptocurrencies for wagering, aiming to enhance financial security and transparency in online betting transactions.
Taxation on Winnings: A 15% tax is imposed on player winnings exceeding BRL2,824 (approximately £437.77/€508.05/$547.25). This measure is designed to regulate the financial aspects of online betting and ensure compliance with tax obligations.
Game Regulations: The ordinance specifies which types of games are permitted, including online slots, card games such as blackjack and poker, and roulette. Notably, crash games are also allowed but must adhere to strict guidelines to ensure they are random and not based on player skill. Game providers must display clear information on the maximum and minimum prize multipliers and their frequency.
Return to Player (RTP) Requirements: Games must offer a minimum RTP of 85%, with the highest advertised prize being awarded at least once in 100 million plays. This requirement is intended to ensure fair play and transparency in the online gaming market.
Certification and Compliance: B2B online games and live gaming studios must obtain certification from SPA-recognized entities. This certification must be maintained and revalidated if critical components change. Operators using third-party gaming platforms must also provide a certificate of integration.
Marketing and Responsible Gambling
In addition to the technical requirements, new rules concerning marketing, government contributions, and responsible gambling have been introduced. These rules are designed to promote ethical practices within the industry and address concerns related to problem gambling and financial accountability.
Marketing Restrictions: There are strict guidelines on marketing practices to prevent misleading or aggressive promotions. The ordinance emphasizes responsible advertising and the prevention of gambling addiction.
Government Contributions: Operators are required to contribute to government initiatives aimed at promoting responsible gambling and addressing potential gambling-related harms.
Responsible Gambling Measures: The regulations stress the importance of implementing robust Know Your Customer (KYC) procedures and anti-money laundering programs. Thiago Balieiro of Sorte Online highlighted the sector’s commitment to these measures, emphasizing the industry's dedication to addressing gambling addiction and ensuring compliance with regulatory standards.
Online Gaming Session Requirements
Online gaming platforms must adhere to several requirements to ensure transparency and fairness:
Game Information: Operators must provide clear and accurate payout tables, showing all potential winning possibilities without misleading or unfair information. Bettors should not be compelled to place bets and should be able to view all available game options.
Live Casino Regulations: Live casino studios must maintain high security standards to restrict access to authorized personnel only. Surveillance systems must offer continuous and unobstructed views of live games, and all gameplay must be recorded for a minimum of 90 days to facilitate reviews and complaints.
Source:
''Latest ordinance in Brazil gives green light to online games'', igamingbusiness.com, August 01, 2024.
