Brazil Introduces Stringent Online Betting License Requirements
On July 31, the Official Gazette of the Union in Brazil announced the release of Normative Ordinance No 1,207, which outlines specific standards for acquiring an online betting license. This pivotal regulation is poised to drive a surge in operator applications, thanks to the detailed and clear regulatory environment now enacted. With the initial 90-day application period nearing its close, only five operators have applied, though expectations are set for this number to rise as the regulatory guidelines become more established.
Comprehensive Regulatory Updates and Requirements
The implementation of Normative Ordinance No 1,207 is a significant move in Brazil's strategy to govern the online betting market. It introduces several new rules which will define the sector’s operation. Highlights include a prohibition against the use of credit cards and cryptocurrencies, ensuring transactions remain transparent and financially secure. A tax rate of 15% will be applied to player earnings over BRL2,824, as part of measures to maintain fiscal responsibility.
The ordinance stipulates the allowable games, including online slots, various card games, and roulette, with crash games also permitted under stringent conditions to guarantee randomness and fairness. Additionally, all games must adhere to a minimum Return to Player (RTP) of 85%, and major prizes must be accessible at least once per 100 million plays. Compliance and certification from recognized entities are required for B2B online games and live gaming studios to ensure continual adherence to standards.
Enhancing Ethical Gaming and Live Game Oversight
Furthering the ordinance’s goal of ethical gaming, stringent marketing and responsible gambling regulations have been set. Marketing efforts are strictly regulated to avoid misleading promotions, with a clear focus on responsible advertising and mitigating gambling addiction risks. Operators are mandated to contribute to government-led responsible gambling initiatives. Emphasizing the need for rigorous safeguards, Thiago Balieiro from Sorte Online commented on the commitment to robust Know Your Customer (KYC) and anti-money laundering strategies to tackle addiction and maintain compliance. For live casinos, stringent security protocols must be in place, ensuring only authorized access, with mandatory surveillance covering all operations, and game recordings kept for no less than 90 days to support any necessary audits or grievances.
Source:
''Latest ordinance in Brazil gives green light to online games'', igamingbusiness.com, August 01, 2024.
