Brazil: Finance Ministry ordered to fully equip betting regulator

Brazil’s Federal Audit Court (TCU) has determined that the Ministry of Finance must, within 120 days, ensure the full operational capacity of the Secretariat of Prizes and Betting (SPA). 

According to the ruling, the regulator must be equipped with human, technological and budgetary resources consistent with the scope of responsibilities assigned to it under the country’s betting framework.

The original vote by reporting minister Jhonatan de Jesus recommended a non-binding guidance. 

However, TCU President Vital do Rêgo argued that a formal determination was necessary due to the structural weaknesses identified, particularly those affecting oversight and the prevention of money laundering within the fixed-odds betting sector. 

The Court concluded that staffing shortages are compounded by a lack of technological infrastructure, limiting SPA’s ability to supervise operators and enforce compliance.

The audit followed an internal communication issued by the Court’s presidency in October 2024, which instructed several oversight actions focused on Brazil’s newly regulated market. 

The findings highlighted deficiencies across operational processes, including monitoring, enforcement and risk assessment functions.

In its decision, the Court also recommended SPA to formalize operational procedures in manuals or other technical documents. 

These documents should outline workflows and responsibilities for key activities, including anti-money laundering measures, controls against the proliferation of weapons of mass destruction and protocols related to combating terrorism financing. 

The objective is to create a standardized, auditable structure for regulatory operations as the market continues to expand.

Recent initiatives have also pushed SPA to strengthen enforcement, including a partnership with the Digital Council of Brazil to block illegal betting advertisements.

David Thompson

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