Brazil’s Secretariat for Prizes and Betting (SPA) has temporarily suspended the operations of several betting companies, including reputable industry heavyweights like Pixbet. The affected companies reportedly failed to meet recently implemented reporting obligations. The government must also contend with thousands of consumer complaints as it continues its efforts to usher in a safe and equitable gambling industry.
Offenders Could Face Harsh Penalties
The SPA took action against seven sports wagering operators. The regulator’s report noted that the companies did not provide the required user activity data, a key component of Brazil’s regulatory framework that seeks to promote transparency and guard against financial crimes such as money laundering.
The seven sanctioned operators are Bell Ventures Digital, Bet.Bet Technological Solutions, Betesporte On Line Betting, EA Entertainment and Sports, Pixbet Technological Solutions, Logame do Brasil, and Sortenabet Gaming Brasil. The SPA warned that companies that fail to remedy these deficiencies could face formal sanctions in addition to any lost revenues.
The lack of accurate reporting affects the safety of bettors and the broader economy, the fight against money laundering, and the collection of taxes and contributions.
SPA statement
The authority noted that the offending operators could face a daily fine of R$40,000 ($7,000), while repeated offenses could result in permanent license suspensions. Under Brazilian law, licensed betting operators must present comprehensive reports to the SPA. These include user transaction history, betting behaviors, and other operational data. The authority considers these reports essential for ensuring accountability in the newly regulated market.
Authorities Will Continue Closely Monitoring the Sector
This crackdown coincides with a spike in consumer dissatisfaction with gambling platforms in Brazil. Consumidor.gov.br, the government’s official consumer complaint website, has received more than 1,000 user complaints regarding licensed gambling websites from January to April this year. Surprisingly, many complaints involve long-standing brands like bet365, Novibet, and Betano.
Although some of the complaints seemingly originate from sore losers unhappy with their losses, the SPA is taking the surge seriously. The platform aims to assist authorities in identifying legitimate malpractice. Some examples include misleading offers, account closures, or delays in payouts. The SPA is collaborating with other federal agencies to determine which complaints have merit and is prepared to take appropriate action.
The SPA is not alone in its fight to rein in the nation’s burgeoning gambling sector. Reacting to the mounting public and political pressure, the Brazilian Senate recently passed Bill PL 2.985/2023, which places strict restrictions on gambling advertising. Legislators have unequivocally stated that the country’s betting boom must not be at the expense of accountability. So far, the government’s actions have matched its words.