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Brazil: ANJL and IBJR seek phased rollout of online gaming rules

Industry groups asked regulators to delay technical requirements until B2B supplier rules are in place, citing concerns over competition from unlicensed sites.

3 min read
Brazil
Key Points
The Associação Nacional de Jogos e Loterias and the Instituto Brasileiro de Jogo Responsável met with Brazil's gambling regulator to discuss upcoming online gaming rules
The associations proposed a two-phase implementation, with player protection measures taking effect immediately while requirements affecting game mechanics wait until B2B supplier regulation is published and enters into force

Brazil's gambling associations are seeking a phased implementation of technical requirements in an upcoming online gaming ordinance.

 

They argue that imposing changes on licensed operators before B2B supplier rules are established could give illegal sites a competitive advantage.

The Associação Nacional de Jogos e Loterias (ANJL) and the Instituto Brasileiro de Jogo Responsável (IBJR) raised the issue during a meeting with the Secretaria de Prêmios e Apostas do Ministério da Fazenda (SPA/MF). The regulator said it expected the interministerial ordinance, which will establish requirements for platform design, user experience and online games, to be published this week.

The associations identified restrictions on autoplay and turbo or quick-spin functions, as well as the proposed minimum interval between the start and completion of each bet or round, as among the most sensitive provisions. 

They argued that these measures would require changes to game mechanics, followed by adaptation and recertification processes for regulated operators.

ANJL said this could leave licensed platforms with a more restricted game catalog and additional certification costs while unlicensed operators would remain outside the same requirements. 

To support its argument, ANJL cited channelization data and regulatory approaches in the UK, Ontario, Germany, the Netherlands and Sweden. The association said these markets provide useful examples of how similar rules can be phased in, rather than evidence that specific requirements directly affect channelization.

Under the proposed two-phase model, measures related to player protection, conduct, interface, transparency and advertising would take effect immediately. According to the associations, these provisions could be implemented without changes to game mechanics or additional recertification.

A second phase would cover requirements that directly affect game mechanics. The associations want these changes to wait until B2B suppliers are also subject to the relevant rules, arguing that operators should not have to adapt and recertify games before their suppliers are regulated. 

They have proposed that these measures only take effect after regulation covering B2B suppliers has been published and has entered into force, followed by an additional transition period for operators and suppliers to adapt.

The associations also proposed reducing the minimum round interval from five seconds to 2.5 seconds. ANJL cited the UK and Ontario as jurisdictions using the shorter interval.

The SPA/MF received the phased implementation proposal positively and said it would evaluate it internally. However, the regulator noted that the proposal does not resolve the associations' underlying concerns about the substance of the forthcoming ordinance.

The meeting included representatives from the SPA/MF, ANJL and IBJR, as well as Eric Davis Hodge, Regulatory Affairs director at NSX Betfair Brasil.

The discussion will continue with the Secretaria Nacional do Consumidor (SENACON) and the Secretaria de Inovação Digital (SEIDIGI) as the interministerial regulation moves forward.

The requirements under discussion were recently outlined by the Government: they include a five-second interval between wagers, a ban on automatic betting and timers, and restrictions on “festive sounds” designed to encourage continued play. 

The measures were under technical review by the Ministry of Finance and the Sports Betting Secretariat ahead of their expected publication the following week.

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Brazil's licensed betting industry has previously backed tougher advertising rules, with ANJL and IBJR supporting mandatory health warnings on betting ads while calling for stronger enforcement against illegal platforms

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