SPA issues regulation mandating action against illegal online gambling operators
The Secretariat of Prizes and Betting of the Ministry of Finance (SPA-MF) published a regulation on Friday (March 21) that outlines how financial institutions (FIs) and payment institutions (PIs), as well as payment providers, must act in relation to illegal fixed-odds betting companies.
According to Article 21 of Law 14.790, FIs, PIs, and payment providers cannot maintain transactional accounts for illegal operators or execute deposit and prize payment operations. Transactional accounts are those that contain money from bettors and winnings.
The new regulation also establishes a 24-hour deadline for FIs, PIs, and payment providers to report any suspicious cases of companies operating illegal fixed-odds betting to the SPA. In the report, they must explain why they consider the case suspicious, as well as provide the CNPJ number (National Register of Legal Entities) and corporate name of the company.
Regis Dudena, the Secretary of Prizes and Betting at the Ministry of Finance, noted that in February, the SPA had already sent 22 notifications to financial and payment institutions, warning that they were being used by illegal betting operators. “This new measure, along with the takedown of illegal websites and advertisements, will be a crucial reinforcement in combating those who wish to operate without authorization and in protecting bettors, as it aims to prevent these sites, which jeopardize the economy and financial stability of individuals, from receiving financial resources, tightening the noose on illegal operations,” the secretary emphasized.
According to a Ministry of Finance press release the obligations of the new ordinance do not eliminate existing legislation and regulations aimed at combating money laundering, terrorism financing, and weapons of mass destruction, which remain equally applicable. Ordinance SPA/MF No. 566 establishes that institutions and payment arrangers that violate these rules may be subject to oversight processes and, if proven, sanctions. According to the current regulation, federally authorized fixed-odds betting companies can only offer services through websites with the “.bet.br” extension.
