Brazil’s Ministry of Finance has taken steps to address the certification bottlenecks that emerged as the country’s regulated betting market launched on January 1, 2025. The Secretariat of Prizes and Betting (SPA) introduced Normative Instruction No. 3/2025 on January 14 to streamline technical certification requirements and alleviate delays faced by operators during the application process.
Certification Delays and Provisional Licenses
Brazil’s newly legalized betting market saw significant interest, with 113 companies submitting applications before the August 2024 deadline. Among these, 14 operators secured full licenses, while 52 were granted provisional authorizations. These temporary licenses allowed operators to commence activities while their applications were finalized. Initially valid for 30 days, provisional licenses can be extended if certifying entities require additional time to complete evaluations.
The SPA’s directive aims to resolve these delays by standardizing certification procedures and providing clear documentation guidelines. Operators must submit technical certificates for betting systems, sports betting servers, remote game servers, and other required documents via the Betting Management System (Sigap) by January 30. For operators unable to meet the deadline, an extension request supported by certifying entities must be submitted.
Normative Instruction No. 3/2025 also introduced a structured “Cover Page” format to improve clarity for certifications shared by multiple operators. Companies offering live studio-based games must submit additional certifications starting February 1, while licensed operators must update core documents monthly unless no changes occur.
Operator and Industry Perspectives
The certification process has proven challenging for operators due to evolving requirements and communication hurdles. Andreas Bardun, CEO of fully authorized operator KTO, described the process as “stressful,” noting that frequent changes to requirements created last-minute complications. Despite these challenges, Bardun acknowledged the SPA’s efforts to manage a complex regulatory rollout, highlighting their dedication over the holiday period.
Thomas Carvalhaes, Brazil country manager for Stake, emphasized the importance of collaboration between operators and regulators to refine the process. “Governments are not gambling specialists; we are. It’s crucial for operators to work with authorities to develop practical and effective regulations,” he said.
Broader Implications for the Brazilian Market
The implementation of Instruction No. 3/2025 aligns with Brazil’s commitment to maintaining a transparent and well-regulated betting industry. Licensed operators can manage up to three distinct brands under each license, valid for five years. By addressing certification delays and enhancing regulatory clarity, the SPA aims to support the industry’s sustainable growth and curb illegal gambling.
Meanwhile, industry groups such as the National Association of Games and Lotteries (ANJL) have raised concerns about practices undermining the regulated market. ANJL criticized Nubank, a prominent digital bank, for issuing anti-gambling alerts during transactions to licensed operators. The association argued that such measures violate principles of economic freedom and unfairly target a legal industry while failing to address transactions with unlicensed sites.
ANJL president Plínio Lemos Jorge stated, “It makes no sense that alerts are not activated for illegal operators. This worsens the situation instead of helping to strengthen regulation.” The association urged respect for current legislation and called for equitable treatment of all legal economic activities.
Brazil’s efforts to refine its betting certification process mark a critical step in the development of its regulated gambling market. By addressing operator challenges and enhancing regulatory frameworks, the government aims to foster trust, ensure compliance, and position Brazil as a leader in the global betting industry. Stakeholders remain optimistic that continued collaboration between regulators and operators will overcome initial hurdles and pave the way for long-term success.
Sources:
Brazil regulator issues ordinance as temporary fix to betting certification delays, igamingbusiness.com, January 15, 2025.
