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Brazil considers future of betting regulator SPA if iGaming is banned

Brazil’s Ministry of Finance is discussing whether to reduce or abolish the Secretariat of Prizes and Betting (SPA) if sports betting and online casinos are prohibited.

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Sao Paulo
Key Points
The Ministry of Finance is considering reducing or potentially abolishing the SPA if legal betting activity ends
The secretariat was created in 2024 to oversee betting regulation and revenue collection, alongside lottery-related responsibilities

Brazil's Ministry of Finance is weighing the future of its Secretariat of Prizes and Betting (SPA) amid the possibility of a ban on sports betting and online casinos.

The ministry is discussing whether to scale back the secretariat's structure or abolish it entirely if betting operators can no longer legally operate in the country. 

One option under consideration would retain a smaller unit focused on monitoring illegal activity and overseeing lotteries.

The SPA was created in early 2024 following a lengthy debate over which ministry should regulate betting, ultimately landing under the Ministry of Finance with a central role in tracking revenue from legalisation. 

Initially expected to employ 38 people, its staff has since expanded to include personnel from the Ministry of Justice, Ministry of Sport and the presidential Chief of Staff's Office, according to media reports.

The internal debate centres on whether maintaining the SPA would still be justified without a legal betting and iGaming market, particularly as lottery oversight has also become part of its remit.

The potential shift carries financial implications. The Government had forecast millions in annual betting revenue, with funds earmarked for healthcare, raising questions about how that income would be replaced. Officials would also need to decide how to reassign SPA staff and monitor illegal betting without a regulated market in place.

A provisional measure banning betting also raises legal questions. According to reports, discussions involving the Presidential Palace, the Attorney General's Office and the Ministry of Justice are underway on how such a measure could be structured and whether Congress could later amend it.

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Social media platforms are also reportedly preparing for the possible Government restriction of betting advertising

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