SPA regulation on the horizon: how the new B2B licence could open (or close) Brazil’s door to your business
The Brazilian sports betting and iGaming market has entered a new phase. Operators already know they need formal authorisation from the Prizes and Betting Secretariat of the Ministry of Finance (SPA/MF) to operate legally in Brazil, meeting technical, corporate and integrity requirements, in addition to paying the licence fee. Without this licence, they cannot offer bets to the Brazilian public.
For those in the B2B segment – platforms, game providers, live casino studios, payment methods, KYC, anti-fraud, sports data, trading and other technology suppliers – the question is inevitable: “Will I also need a licence or registration to provide services to operators in Brazil?”. As of today, the answer is: the obligation has not yet been fully detailed in regulation, but the direction is clear – and the SPA is expected to publish, in the second half of this year, the ordinance that will formalise the need for a licence/registration for the B2B sector.
The turning point was the public consultation opened by the Secretariat on the “regulation of the contracting of service providers by fixed-odds betting operators”. In this consultation, the SPA makes it explicit that it wants to establish minimum qualification requirements for suppliers and states that only suppliers “recognised by the SPA” may be contracted by licensed operators. In other words, the regulator is building a B2B filter: operators wishing to keep their licence will not be able to work with just any partner, only with those previously recognised by the SPA. The expectation is that this guideline will be consolidated in the new ordinance planned for the second half of the year, in practice creating a mandatory regime of licence, registration or accreditation for suppliers as well.
It is not yet known whether this recognition will be called registration, accreditation, authorisation or certification, nor whether there will be a requirement to pay a licence fee or only supervisory/registration fees. It is also not entirely clear which types of suppliers will be covered (only platforms and game providers, or also payments, anti-fraud, KYC/AML, sports data, affiliates, marketing, etc.). Nor is there, for the time being, a “B2B SIGAP” with a ready step-by-step process. But the central message has already been given: licensed operators will only be able to hire suppliers that appear in the SPA’s official list of recognised entities, and the ordinance expected in the second half of the year will turn this into a concrete obligation.
If you are an international B2B player that has not yet entered Brazil, this completely changes the logic of “testing the market” informally. To be a strategic partner of key operators, you will need to show more than a good product: you will need to demonstrate robust compliance, governance, information security, game integrity, AML/KYC controls and adherence to the Brazilian requirements that are on the way. The market is becoming regulated not only at the operator end, but across the entire critical chain, now including B2Bs.
In this context, having a reliable local partner ceases to be a differentiator and becomes a mandatory requirement. This is where PCReps positions itself as the ideal business partner for legal representation in Brazil. We act as a bridge between international suppliers and the Brazilian regulatory environment, using our network of strategic partners to: (i) interpret and monitor SPA regulations in real time, including the ordinance expected in the second half of the year; (ii) structure your company’s legal and regulatory presence in the country, in line with B2B licence/registration requirements; (iii) prepare the documentation, policies and processes needed for recognition by the SPA; (iv) facilitate relationships with local operators, already within the compliance parameters expected by the regulator.
In practice, this means you can get ahead of the competition. Instead of waiting for the ordinance to be published before starting to act, you can use this period to organise your strategy, adjust your governance and, with PCReps’ support, set up a structure ready to respond swiftly to the new rules. Those who reach the second half of the year already prepared for the “SPA-recognised supplier” model will have a real advantage in the race for the best contracts with licensed operators.
In summary: the specific licence/registration for B2B suppliers has not yet been formalised, but the SPA has already announced its intention and is expected, in the second half of this year, to issue the ordinance that will deal with the matter. In a regulated Brazil, there will only be room for officially recognised suppliers in dealings with authorised operators. If you are considering entering the country as a technology or content partner, now is the time to position yourself – and PCReps is ready to be your legal and strategic representative in Brazil.
If you would like to discuss scenarios, risks and next steps for your B2B business, contact us and we will assess, together, the best route for your entry into the Brazilian market.