Brazil creates supervisory body for regulated sports betting

The Secretariat for Prizes and Betting will be responsible for monitoring the regulated market.

Brazil.- As Brazil gears up for regulated sports betting, the Ministry of Finance has formed a supervisory body for the market. Established by ministerial decree, the Secretaria de Prêmios e Apostas (SPA) or Secretariat for Prizes and Betting, will report to the Ministry of Finance.

Its duties will include monitoring and reporting on gambling activities and licensed operators to ensure compliance. It will also be tasked with preventing money laundering and market manipulation and protecting vulnerable groups.

In the area of responsible gaming, it will establish and enforce policies that promote responsible gambling practices. It will also supervise marketing and advertising activities to protect consumers. The SPA will also collaborate with the Ministry of Sports to safeguard sporting integrity. This includes monitoring for match-fixing and overseeing financial transfers to athletes, clubs and sports organisations.

Eight governors “each with specific responsibilities related to Brazil’s economic and financial governance” will oversee the SPA’s performance. The body will be led by three sub-secretariats and will have a team of 39.

The ministry stated: “The SPA will work within the Ministry of Finance to enhance its structure and improve government actions in regulating the fixed-odds betting market, online gaming and fulfilling legal duties related to lotteries and commercial promotions.”

President Lula da Silva signed off on Brazil’s sports betting law (Law 14,790/2023) on December 30, approving the legal framework for the new marketplace, covering taxation, licensing, revenue distribution and sanctions. The new law not only introduces a regulatory framework for sports betting but also includes the possibility of online casino gambling, an addition that had been in doubt due to the opposition of some senators and deputies belonging to the opposition and the evangelical bloc.

There have reportedly been over 140 applications of interest from domestic and international operators.