August 05, 2024

Brazil Bets framework complete as SPA settles on Responsible Gambling rules

The Secretariat of Prizes and Betting (SPA) has completed the technical framework required for the government of Brazil to launch a federal online gambling market – commonly referred to as ‘Bets’.

On Friday, the SPA submitted ordinance No.1231 to the government, outlining its rules and technical guidelines for responsible gambling with regard to marketing, communications, and advertising of the Bets market.

The document supports previous SPA ordinances on IT securities, AML, licensing criteria, and game authorisations to guarantee the launch of a legal framework for “ethical and licensed gambling for the Federal Constitution of Brazil.”

SPA guidelines underscore that operating agents must observe Responsible Gambling as a duty of “promoting healthy, socially responsible gambling while preventing harm.”

Betting agents must adhere to statutory duties educating customers on the risks of gambling addiction/disorders and ensure compliance with age restrictions prohibiting under-18s from online gambling.

All customers must be provided with tools to set limits on money and time spent gambling, as betting agents must ensure that customers are monitored for symptoms of gambling disorders.

Self-exclusion from online gambling activities is recognised as a “legal right for customers,” in which operators must ensure no marketing communication with players that have self-excluded.

Operators must ensure that customers have the legal right to access clear information on odds, terms, and conditions, and to withdraw funds and close accounts without unnecessary restrictions.

Personal data and privacy must adhere to rules on IT securities. Customers are required to provide accurate personal information and comply with the legal requirements of betting firms on ID verification. Customers cannot act as intermediaries for third-party bets.

Prior to licensing, all operators must present the SPA with a “responsible gaming policy” and ensure that it accurately reflects the actual functioning of its betting system.

The integrity of betting systems includes complying with regulatory requirements on AML protections and the filing of income statements and tax receipts.

Advertising rules prohibit targeting minors and vulnerable audiences. Marketing campaigns cannot imply “gambling as a solution to financial problems,” or make misleading claims about winning odds, linking gambling to personal or financial success.

Advertisements must clearly display age restrictions (18+) and warnings about addiction risks, as betting agents must ensure that all “promotional content is clearly identifiable as advertising.”

On social media, campaigns must be transparent when promoted by influencers, who must disclose the commercial relationship and ensure that campaigns are promoted to over-18 audiences.

The ordinance upholds the rule that customer sign-up bonuses are prohibited, but “actions that encourage bettor loyalty are permitted.”

In sports and media sponsorship, betting campaigns must promote responsible advertising and avoid sponsoring events or teams involving minors. Sponsorships will be reviewed to ensure responsible messaging to audiences.

The SPA detailed that regulatory oversight of advertising campaigns will be initiated from the market’s expected launch on 1 January 2025, with “immediate sanctions for non-compliance.”

Stringent administrative penalties have been outlined for individuals or entities that violate regulations, including warnings, fines, suspension of activities for up to 180 days, and cancellation of authorisations.

As outlined under licensing accreditations, Bets fines may range from 0.1% to 20% of the revenue generated in the year preceding the initiation of proceedings, with a maximum limit of BRL 2 billion.

Offenders may also face prohibitions from obtaining new authorisations and engaging in certain activities for up to ten years, as well as being banned from participating in public service concessions for at least five years.

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