On 2nd May 2024, the Brazilian Ministry of Finance’s Prizes and Betting Secretariat (Gaming Authority) issued SPA/MF Ordinance No. 722 to establish minimum standards for the platforms and systems utilized by operators for the management of betting and operation of online games in accordance with Law No. 14,790/2023.
The regulations encompass various crucial topics such as domain names, online games, location, certification, and guaranteed access for the Gaming Authority. Notably, one requirement stipulates that online channels used by operators must be registered with the “bet.br” domain name. Additionally, a multiplication factor must be set when a bet is placed in online games, defining the specific sum the player will receive if they win.
Another important regulation dictates that the operator must operate the betting system and store its data in Brazil-based data centers, with certain allowances for data storage in countries that have signed legal cooperation agreements with Brazil, subject to specific consent and compliance with the Brazilian General Data Protection Law (LGPD). The Ministry of Finance’s technical department must also have access to the operator’s systems and data, including a requirement for the operator to replicate its database and information in Brazil.
Furthermore, the operator’s systems must be certified by Gaming Authority-approved entities, with certificates requiring annual revalidation and whenever critical components are added, modified, or removed. The operator must also provide full access to its betting systems to the Gaming Authority’s departments and inspection agents upon request, and furnish data regarding bets, players, legal destinations, and other operational information in accordance with the frequency and format established in the SIGAP Manual.
The annexes in SPA/MF Ordinance No. 722 detail additional general and technical requirements for operators’ systems, including multifactor authentication, geolocation of players, fraud prevention processes, data recording, evaluation of software source code by certification entities, and minimum access controls and other security requirements.
For further information regarding this ordinance, please contact Mattos Filho’s Technology and Entertainment practice areas. This regulation of fixed-odds betting systems in Brazil demonstrates the government’s dedication to ensuring equitable and secure online gaming practices for both operators and players.