As of August 1, 2024, Brazil has taken a significant step forward in the online gaming industry with the publication of Normative Ordinance No 1,207. This ordinance, released in the Official Gazette of the Union, lays out the specific technical requirements for obtaining an online betting license, setting the stage for a more structured and regulated gaming environment in Brazil.
Key Requirements and Timeline
Operators looking to enter Brazil’s online gaming market have a 90-day window to apply for their licenses. Despite the slow start, with only five applications submitted so far, the confirmation of the rules is expected to trigger a surge in interest and applications.
Hugo Baungartner, CCO of Aposta Ganha, predicts that this ordinance will prompt the majority of operators to take action. Since April, the prizes and betting secretariat (SPA) has been rolling out regulations, culminating in the comprehensive rules now in place.
Major Regulatory Highlights
Several critical regulations were announced prior to the latest ordinance, including the prohibition of credit cards and cryptocurrency for wagers, and a 15% tax on player winnings over BRL2,824 (approximately $547.25). This week, additional rules regarding marketing, government contributions, and responsible gambling have been introduced, further shaping the landscape for online gaming in Brazil.
Permissible Games and Technical Standards
Normative Ordinance No 1,207 permits a range of games in the licensed market, such as online slots, blackjack, poker, and roulette. Crash games are also allowed, provided they are random and do not award prizes based on skill. These games must display the prize multiplier’s maximum and minimum values and the frequency of increases.
Each game must offer a minimum Return to Player (RTP) of 85%, with the top prize being awarded at least once in every 100 million players. Despite some controversies, such as the Fortune Tiger game, which has been linked to influencer-related arrests, the ordinance allows its inclusion, emphasizing the importance of robust Know Your Customer (KYC) and anti-money laundering (AML) measures.
Certification and Compliance for Game Providers
B2B online game providers and live gaming studios must obtain certification from an SPA-recognized entity, maintaining valid certificates throughout their operation. Any changes to critical components necessitate revalidation. Operators using third-party gaming platforms must ensure these systems are properly integrated and certified.
Game outcomes must be determined by a random event generator, and operators are required to provide payout tables showing all possible winning combinations to players before they place their bets. This transparency is crucial for maintaining player trust and regulatory compliance.
Player Information and Live Casino Requirements
Operators must clearly inform players of all available game options, ensuring payout tables are transparent and not misleading. Players should not be obligated to bet after selecting a game, and default screens must not display the highest prize unless it pertains to the last game played.
For live casino operations, the regulations mandate secure, authorized-only access to designated studio locations, continuous surveillance of live games, and comprehensive recording of all gaming sessions. These recordings must be kept for at least 90 days to verify compliance with rules and procedures, available for review in case of disputes.
Implications for the Future
Brazil’s structured approach to online gaming regulation, as outlined in Normative Ordinance No 1,207, is poised to create a secure, transparent, and fair environment for both operators and players. The emphasis on certification, transparency, and responsible gambling underscores the country’s commitment to fostering a reputable gaming industry.
This regulatory framework not only opens the door for domestic and international operators but also sets a high standard for operational integrity and player protection. As more operators apply for licenses, the Brazilian online gaming market is expected to expand significantly, offering new opportunities for growth and innovation in the sector.
