Brazilian Laws Governing Online Games and Live Studios Revealed
The launch of Brazil’s federal online gambling market is nearing completion as the government releases new technical ordinances for online casino games and live gaming studios.
Rules for Brazilian online games and live studios published.
LISTEN TO THIS ARTICLE:This week, the Secretariat of Prizes and Betting (SPA), designated as Brazil’s federal gambling authority, submitted Ordinance No. 1,207 to the government. This document details the technical requirements for operating online games and live dealer studios under Law No. 14.790 (Betting Law), which provides the regulatory framework for the Brazil Bets Market.
Additional ordinances will be needed to update rules for fixed-odds games offered by lottery operators before the Betting Law. Notably, the SPA has provided its legal interpretations for online criteria involving multiplier systems, table games, fixed-odds games, live studio games, multiplayer games, and fantasy sports. The SPA also includes two annexes to clarify key requirements for online and live games.
Online Game Requirements
The SPA’s document specifies the technical and operational standards for online games, focusing on the player interface, game mechanics, payout calculations, and game integrity. Online games must ensure outcomes are randomly determined using a return-to-player (RTP) multiplier system. Each game’s RTP must be prominently displayed to customers, along with the conditions for achieving it. Licensed operators must maintain an RTP of at least 85% over the game’s playing cycle. Games such as ‘Crash’ must be classified as games of chance and cannot be marketed as skill-based.
Rules Governing Live Studio
The ordinance also sets guidelines for live gaming studios, defined as physical environments using live video transmission to provide real-time gaming experiences to remote players. These studios must be integrated with the betting system, allowing player-dealer interaction similar to a physical casino.
- Live Game Interaction: Studios must enable seamless real-time interaction between players and dealers, ensuring a casino-like experience.
- Technology and Equipment: The technology, including video streaming equipment, must meet quality standards for clear, uninterrupted broadcasts. This includes high-definition video feeds and reliable internet connections.
- Compliance and Certification: Like online games, live studio games must be certified by a SPA-recognized entity, confirming they meet all technical requirements and are conducted fairly.
- Training and Conduct of Dealers: Dealers must be trained to understand the games and interact professionally with players, with requirements for their conduct and presentation during broadcasts.
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Other Rules
All online games, whether operated by local or international companies, must be certified by an SPA-recognized entity. A number of testing agents have been authorized, such as GLI, eCOGRA, and BMM Testlabs.
Furthermore, betting companies must submit a report assessing compliance with technical requirements within 90 days of obtaining certification. Finally, the ordinance clarifies that games of skill, fantasy sports, multi-bettor games, and peer-to-peer betting do not qualify as fixed-odds online betting games. These categories require separate regulations and are not covered by the current ordinance.
Next, the SPA will publish the final Phase-4 ordinance focusing on “Responsible Gambling and Social Purpose”. It will include measures, guidelines, and practices to prevent harmful gambling, monitor and prevent bettor debt and ensure responsible advertising.
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