Brazil Tightens Online Betting Regulations with New Domain and Data Protection Rules
By Newton Fleury Filho
Brazil's Ministry of Finance has recently unveiled comprehensive new guidelines for the operation of fixed-odds betting platforms and online gaming systems. Detailed in Ordinance No. 722, these regulations mark a significant stride in the regulation of online gambling in the country.
The ordinance, a pioneering move signed by Regis Dudena, the new Secretary of the Secretariat of Prizes and Betting, was published last Friday in the Official Diary of the Union (DOU). Spanning 35 pages, the document lays down stringent technical and security requirements aimed at fortifying the integrity and safety of betting systems.
A notable aspect of the new rules is the requirement for all operators to utilize the "bet.br" domain. This move is intended to streamline the management and oversight of online gambling services, ensuring a unified and easily recognizable platform for users and regulators alike.
In alignment with Brazil's General Law of Data Protection (LGPD), the ordinance places a heavy emphasis on data protection. Operators are required to host their betting systems and data within Brazilian territory or in countries that share an International Judicial Cooperation Agreement with Brazil on civil and criminal matters. This ensures that personal data management adheres to stringent national standards, even when crossing borders.
Additionally, the regulations stipulate that users must provide explicit, highlighted consent for the transfer of their personal data. Operators must also furnish clear details regarding the purpose of data operations. This transparency is aimed at empowering users by providing them with control over their personal information.
Another critical requirement is that operators must ensure that their databases in Brazil are replicas of their primary databases and are updated continuously. This redundancy is part of a broader mandate for operators to maintain robust Business Continuity Plans for Information Technology, preparing them to handle critical situations that could compromise operations and data security.
Furthermore, the ordinance mandates that all betting systems, including sports betting and online gaming platforms, obtain certification from entities recognized by the Prizes and Betting Secretary. These certifications are crucial for maintaining operational standards and must be renewed annually, particularly when system changes occur.
Operators are also obliged to submit detailed operational data to the Secretariat of Prizes and Betting. This includes information about bets, bettors, bettor wallets, and the legal use of funds, among other details.
The implementation of Ordinance No. 722 represents a critical step forward in Brazil's effort to regulate and secure the online betting landscape. By setting clear, enforceable standards, the Ministry of Finance aims to protect users and ensure a fair, transparent betting environment.