Brazil is on the brink of a significant transformation in its online gaming landscape, thanks to the recently published Normative Ordinance No. 1,207 in the Official Gazette of the Union. Released on Wednesday, July 31, the ordinance establishes a comprehensive framework of technical requirements for online gaming platforms seeking a betting license in Brazil. As the initial 90-day window for license applications draws to a close, the ordinance provides clarity for operators eager to enter the Brazilian market.
Despite the approaching deadline, only five applications have been submitted so far, but industry experts anticipate a surge in interest now that the rules have been finalized. Hugo Baungartner, CCO of Aposta Ganha, remarked that this ordinance is expected to “be the catalyst for the majority of operators to apply.”
Key Regulations for Online Gaming
The Prizes and Betting Secretariat (SPA) has been rolling out regulations since April, with a four-phase rollout concluding at the end of July. Among the new regulations, credit cards and cryptocurrency have been banned for wagering, and a 15% tax will be imposed on player winnings over BRL 2,824 (approximately $547.25).
Normative Ordinance No. 1,207 allows a variety of games, including online slots, card games like blackjack and poker, roulette, and crash games. However, all games must adhere to strict guidelines. Crash games, for instance, must be entirely random and not offer prizes based on skill. The rules stipulate that the prize multiplier’s maximum and minimum values must be clearly displayed, along with the frequency of increases.
The ordinance also sets a minimum Return to Player (RTP) rate of 85% for each game, ensuring that the advertised top prize can be won at least once in 100 million plays. Notably, the Fortune Tiger game, despite recent controversies involving social media promotions, is allowed under the new regulations.
Focus on Security and Player Protection
The ordinance emphasizes the need for strict security measures and responsible gambling practices. Game providers must obtain official certification from an SPA-recognized entity, ensuring that their games meet all technical and safety standards. Certification must be revalidated whenever “critical components” are changed, and operators using third-party platforms must present an integration certificate.
To ensure fair play, all game outcomes must be determined by random events. Online gaming platforms are required to provide a detailed payout table showing all potential winning combinations before players place bets. The tables must be transparent and fair, avoiding misleading information.
Live gaming studios must have a designated location with robust physical security controls. The ordinance mandates continuous surveillance with unobstructed views of all live games, and the footage must be retained for at least 90 days to ensure compliance with rules and procedures.
Thiago Balieiro, vice-president of people and performance at Sorte Online, highlighted the industry’s commitment to responsible gaming, stating that companies are focusing on “anti-money laundering programs” and “prevention of addiction to gaming.” He added, “There are a lot of structures, and I think the regulation is really focusing on this to avoid all the problems that gaming addiction can cause in the population.”.
Source:
Latest ordinance in Brazil gives green light to online games, igamingbusiness.com, August 1, 2024.