On Friday, the SPA suspended the licenses of seven operators after these companies failed to provide security assessment reports for their betting systems to the regulator.
Yesterday, the Secretariat of Prizes and Bets (SPA) reinstated the licenses of Logame do Brasil Ltda and Sortenabet Gaming Brasil SA after they submitted the required technical documents to the regulator.
According to Normative Ordinance No 722, published last year, operators are required to submit an evaluation report of their betting systems to the SPA. The report must be issued by recognized certifying entities and submitted to the regulator within 90 days of receiving licensing approval.
EA Entretenimento e Esportes and Bet.Bet Soluções Tecnológicas SA swiftly submitted their reports last week, following the publication of the list. Additionally, a federal court granted a preliminary injunction to Pixbet to reinstate its license, as it is the primary sponsor for the Flamengo football club. Due to regulations prohibiting unlicensed brands from sponsoring and featuring in any sporting games, a judge promptly reinstated Pixbet’s license before Flamengo’s match over the weekend.
Now, only Bell Ventures Digital Ltda and Betesporte Online Betting Ltda remain on the list. Consequently, the SPA will allow Logame do Brasil’s LiderBet, GeralBet, and B2xBet brands, along with Sortenabet’s SorteNaBet, Betou, and BetFusion to continue operating.
### Are the SPA license suspensions fair?
Back in April, the SPA similarly suspended the licenses of four operators that had failed to present technical certificates. These suspensions included Pixbet, which also had its license reinstated by a federal court decision at the time.
Brazilian lawyer Fabio Ferreira Kujawski told iGB that the license suspensions were unfair. In his view, the actions could demonstrate a “certain lack of dialogue and understanding” from the regulator.
“In our view, the suspension of the authorization was a disproportionate response to the infraction committed,” Kujawski said.
“The SPA needs to understand that there are several companies already established in the market, with million-dollar sponsorship contracts, and that a suspension of authorization should only occur in extremely serious cases of repeated violations of Brazilian law.”
Kujawski believes the SPA should assert authority over Brazil’s market but must also find a balance.
“This cannot translate into an agency that applies sanctions in a disproportionate manner or adopts an inquisitorial stance against the sector it regulates,” Kujawski added.
“A balance must be struck between an active agency and a belligerent one. I am convinced that the SPA will find this right path.”
The SPA has reinstated five operator licenses after they submitted the necessary technical paperwork. The initial suspensions were reported last Friday.