Brazil suspends betting licenses over cybersecurity breaches

Brazil’s Secretariat of Prizes and Betting (SPA) has taken decisive action against online betting platforms found in violation of cybersecurity requirements, suspending the licenses of two operators for failing to submit mandatory evaluation reports. 

The move marks the strongest regulatory enforcement to date since the formal launch of the country’s Bets licensing regime in January 2025.

The Ministry of Finance confirmed that, as of Monday, June 2, Bell Ventures Digital Ltda (BandBet) and Betesporte Apostas On Line Ltda (BETesporte and Lance de Sorte) have had their permissions temporarily revoked. These firms did not provide cybersecurity certification as mandated under Article 8 of Ordinance SPA/MF No. 722/2024.

The suspensions mean that these brands are barred from operating in Brazil, including offering bets, accepting deposits, and registering new users, until compliance is restored. 

The SPA stated that the measure is intended to “safeguard the integrity of the regulated environment and protect Brazilian consumers by ensuring that all licensed operators can prove the cyber-resilience of their operations.”

Each operator now faces the potential of daily fines of R$40,000 and the risk of permanent license cancellation if they fail to resolve their compliance shortfalls. Sanction proceedings are underway.

Initially, the SPA suspended the operations of 11 companies and 29 betting brands on Friday (May 30). That same day, four companies proved they had all the proper documentation in place, which led the regulator to remove them from the list, reducing the number of suspended firms to seven.

The next day, Saturday (May 31), PixBet obtained a court injunction to suspend the effects of the measure, which two other companies, EA Entretenimento and Bet.Bet Soluções Tecnológicas, also submitted the necessary documentation. At the time of publication of this article, Monday (June 2), the suspension was only maintained for two companies.

The crackdown concludes a month of escalating scrutiny over gambling operators, which has also included new oversight of digital advertising and platform integrity. On a parallel track, Brazil's Senate last week approved Bill 2,985/2023, which proposes to establish a standalone federal framework for gambling advertising. 

The bill, which must still pass the Chamber of Deputies, would place tighter controls on how betting brands market their services, particularly in relation to sports sponsorships and youth exposure.

The Brazilian Institute for Responsible Gaming (IBJR) has raised concerns that the legislation could inadvertently push users toward unregulated offshore platforms. Meanwhile, more than 50 football clubs have warned that the measure could cost them up to R$1.6 billion ($280 million) annually in sponsorship revenue, potentially leading to legal disputes over existing contracts.