In an interview conducted by Betting Jobs, Victoria Cerioni, head of innovation and iGaming at Sadi / Morishita Lawyers, offers a detailed insight into the regulatory framework created by the Secretariat of Prizes and Bets (SPA) for the Brazilian market. The expert shares her perspective on the number of applicant operators reached so far, the pros and cons, and the effects she foresees on hiring in the region, among other topics.
Can you share some details about your experience in the iGaming industry?
I started working in the iGaming industry two years ago. It's a very exciting industry – I love the dynamic nature of those involved, the fast-paced business environment, and the excellent opportunities available. Currently, I work as the Head of Innovation and iGaming at SM Law Firm.
Our law office has a specific department focused on the needs of clients from the iGaming industry, gaming agencies, service providers, and much more. We are a full-service office specialized in the sector, and we offer tailored legal advice in all areas of law relevant to iGaming in Brazil. Our main lawyers have extensive experience both in iGaming and in all areas of corporate law.
Currently, my role is to lead our iGaming projects. Our team is committed to informing clients about the complex Brazilian legal landscape (which we know is quite difficult to understand!), ensuring they comply with local regulations and manage their operations effectively in the country.
What are the main components that operators should keep in mind after the regulations established by the SPA?
When we talk about the regulation of the iGaming sector in Brazil, we are not just talking about obtaining a license, but about how the market will ensure sustainable growth in the long term. With this in mind, operators need to understand that the obligations outlined by the SPA/MF go far beyond guidelines for obtaining authorization; they dictate how the Federal Government expects these companies to operate in a regulated environment. Therefore, topics such as the rights of bettors, advertising and responsible gaming, information security, and new technologies were extensively addressed in the federal legislation.
Were you surprised by the number of companies that applied for a license by the deadline of August 20, 2024 (a total of 113), or was this within your expectations?
Yes, it was a pleasant surprise! During the first weeks of the registration period, we observed some resistance from companies in signing up (which was completely expected, since when the registration window was opened, not all the ordinances had been published by the SPA yet). If you had asked me the previous Saturday (August 10), I would have estimated only 30 or 40 registrations. Therefore, seeing 113 companies sign up by August 20 (and 114 at the time of our conversation) is a positive sign for a well-diversified regulated market.
I foresee that even more companies will sign up in September or October, especially those that still question the viability of operating in the federally regulated market.
We have seen clients looking to grow, but we have also seen companies give up on applying for a license at the last minute due to the regulatory requirements being "too heavy" - have you seen this?
Yes, in our office, we talk daily with operators of various sizes from the sector. Our work involved assisting companies with the licensing process until the last minute, including corporate arrangements for joint registrations with other brands. However, I would say that signing up even after the August 20 deadline remains a good strategy to keep options open, especially now that the investment market is looking at the sector more maturely.
It is crucial to emphasize that, although the first window has closed, registrations remain open, so companies can still apply for their license with the SPA.
The prevention of money laundering and financial crimes is fundamental when it comes to what was outlined by the SPA. Do you think a regulated sports betting environment in Brazil will be beneficial for consumers?
Yes, absolutely. The guidelines within the Brazilian legal framework, especially in Ordinance SPA 1.143, made it very clear that the Federal Government is focused on ensuring the prevention of money laundering and financial crimes.
The truth is that, with a registered operation in Brazil – under the supervision of the SPA, working with Financial Institutions and Payment Institutions duly authorized by the Central Bank, and with open audit channels for competent authorities – actions to curb money laundering and financial crimes are much more likely to be successful, as this arrangement facilitates investigations and preventive measures.
Upon reviewing the legal ordinances related to the prevention of money laundering, it became evident that the government has a specific focus in this area. One of the first ordinances published by the SPA was Ordinance 615, which established specific guidelines for Payment Institutions, since these companies have serious obligations to ensure compliance with Brazilian legislation. It is important to understand that the regulatory obligations for this market go beyond the Laws of Games and Bets; there are various national legal provisions that outline essential measures and obligations to prevent financial crimes and money laundering within the national economic landscape.
Is there any potential downside in the SPA's regulations? For example, the cost of a federal license is £4.3m (R$ 30 million) – do you think this could lead to a greater number of clients for black market sites?
As in any regulated environment, I see challenges. We know that applying for a federal license to operate in Brazil is not cheap. However, there are some alternatives that allow companies, even smaller ones, to participate in the regulated market. One example is state licenses, where an operator can apply for a local license that allows companies to operate legally within a specific state in Brazil, and it is much cheaper than a federal license.
Another strategy widely used by companies that applied for a license with the SPA was the formation of consortia to share a license among different brands. For example, Bet 1, Bet 2, and Bet 3, each from different companies, can join in a consortium for a joint registration.
Are there parts of the legislation outlined by the SPA that are ambiguous and could be misinterpreted. Is this something you can comment on, or do you believe it will cause more problems?
As with any new legislation, when we move from theory to practical application, it is normal for doubts and interpretative challenges to arise. This is not something exclusive to the SPA, as it is something that happens (and continues to happen) in various legislative scenarios. For example, when we think about the General Data Protection Law (LGPD), which regulates how personal data must be treated in Brazil, we see that it is a law that came into force in August 2020, and so far, we have numerous complementary regulations being issued by the National Data Protection Authority almost monthly to assist in the application of the law.
However, we can see that the SPA is very active and engaged in helping market stakeholders with their doubts and questions about legal application. For example, the SPA opened an online channel with a compilation of frequently asked questions from the market and also provided a specific channel to clarify doubts about the ordinances, which is great, as we do not always have a dedicated channel to clarify these issues.
As expected, there has been a significant increase in job vacancies for Latin America at BettingJobs, especially in Brazil. Do you foresee that this trend will continue or do you think it has already reached its peak?
I believe that this trend will continue to grow in the coming months and years. With the establishment of a regulated market, it is likely that we will see even more growth in the sector within the country and, consequently, an increase in job opportunities in the region.
Additionally, something that makes me very happy is witnessing the increase in diversity in the sector, especially among women! When I entered the industry, there were very few of us, but now we are seeing more and more women joining the field. For example, in March of this year, we launched AMIG, the Association of Women in the iGaming Industry, which is fantastic and already has more than 360 members! As other markets begin to explore iGaming in Brazil, paying for licenses in the region, attracting customers, or forming partnerships, this suggests that new jobs and opportunities will continue to arise.
I suspect that, in the coming months, the BettingJobs team will have many new job vacancies in Brazil, especially due to their specialized consultancy and knowledge of professional profiles for each area of the sector. I am excited to see their operations expanding even more here!
Source: BettingJobs
