Brazil has made significant progress in regulating its gambling industry with the introduction of the Secretariat for Prizes and Betting (SPA) by the Ministry of Finance. This move is part of a larger effort by the government to bring legal oversight and enhance control over the rapidly growing gambling sector within the country.
The establishment of SPA is supported by Law No. 14,790 of 2023, enacted by President Luiz Inácio Lula da Silva. This law addresses various aspects of fixed-odds betting and introduces significant changes to existing laws, including taxation criteria, rules for commercial exploitation, revenue distribution mechanisms, and sanctions.
The main focus of SPA’s mandate is to efficiently regulate the fixed-odds sports betting market, including sports betting and online gambling. The secretariat will also oversee lotteries and commercial promotions, while also working in conjunction with anti-money laundering initiatives. One of SPA’s key responsibilities is to establish and enforce responsible gambling policies to protect vulnerable groups, particularly minors.
Within the Ministry of Finance, SPA will be one of eight secretariats, playing a pivotal role in the regulation of the gambling industry. It will operate through three key sub-divisions: Authorization, Monitoring and Inspection, and Sanctioning Action, with 38 professionals dedicated to creating a safe and sustainable market.
The enactment of Law No. 14,790 is a significant milestone, filling a regulatory void that had persisted for years. The absence of specific inspection and taxation rules had left the sector operating without proper oversight, exposing stakeholders to potential scams and fraud. The introduction of SPA aims to bring transparency and comprehensive oversight to these domains.
SPA will also collaborate with the Ministry of Sport in matters related to sports integrity, including monitoring result manipulation in sporting events and overseeing transfers involving athletes, clubs, and sports management bodies. This collaboration is intended to increase fan engagement and prevent controversies from tarnishing the country’s sports reputation.
The establishment of SPA marks a transformative journey for Brazil’s gambling landscape, with a focus on transparency, responsible gambling practices, and effective oversight. With SPA at the helm, Brazil is entering a new era of regulated and accountable gambling practices that aim to create a secure and regulated environment for operators, bettors, and other stakeholders.