Brazilian Gaming Groups Propose Phased Implementation of Online Game Rules

The National Association of Gaming and Lotteries (ANJL) and the Secretariat of Prizes and Betting of the Ministry of Finance (SPA/MF) of Brazil met on Friday (7) to discuss the Interministerial Ordinance that will come into force soon to cover online game design, user experience, and platform requirements.

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The meeting occurred because the SPA/MF is about to publish the regulation, which the ministry hopes to see at the start of next week. The industry expressed concerns with provisions that might mandate structural changes to the game mechanics, which could lead to an adaptation process and recertification of the existing product.

Industry Warns of Potential Advantage for Illegal Operators

Some of the most sensitive measures that were discussed included restrictions to features like autoplay and turbo/quick spin, and a minimum time between a bet opening and the end of a bet round or game. ANJL stated that these requirements may lead to substantial costs for the operations of authorized operators.

The primary issue of concern, however, for the association is the potential for a competitive imbalance between the regulated and illegal markets. Licensed platforms would have to adapt their lists of games, and face further certification procedures, while hacked games would have the possibility to continue to be sold on unofficial websites without the same level of compliance, oversight, or consumer protection.

ANJL supplied research, channelization data, and comparison with the international markets, such as the United Kingdom, Ontario, Germany, the Netherlands and Sweden in support of its position. The association indicated that these markets should be considered as illustrative examples of the regulatory sequencing and proportionality, not as evidence of direct causation between regulations and levels of channelization.

ANJL Proposes Two-Phase Implementation

The ordinance was coming, and ANJL suggested that rather than question the overall direction of the ordinance, the state could gradually adopt the new requirements in two stages.

The first phase would take place immediately and include player protection aspects of conduct, interface, transparency, and advertising. The requirements would not require changes to any game mechanics or immediate recertification, as outlined by the proposal, which would mean that the operator would not need to significantly disrupt the operations of their games.

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The second phase would relate to requirements which directly impact the game mechanics and need to be technically adapted or recertified. ANJL suggested that these measures should only be implemented once the regulations for B2B suppliers are published and become effective, with a further transitional period.

Association Also Seeks Changes to Round Duration

One feature that is proposed to be changed in the minimum duration of the online game rounds is that they will be revised to include a minimum duration of 5 minutes. ANJL has adopted a 2.5-second interval, instead of five, based on regulatory intervals used in the United Kingdom and Ontario.

The proposal for a phased implementation is welcomed by the SPA/MF and will be reviewed by the organization internally, according to the report. ANJL, however, said that the proposal doesn’t address its substantive issues with the proposed ordinance.

Discussions to Continue With Other Government Bodies

The meeting was attended by both Government and Private sector representatives. The participants of the SPA/MF were Deputy Secretary Fabio Augusto Macorin, General Coordinator of Responsible Gaming Monitoring Andiara Maria Braga Maranhão, and General Coordinator of Regulation Leandro dos Reis Lucchesi.

Also in attendance were representatives from ANJL and IBJR, in addition to NSX Betfair Brasil S.A. Director of Regulatory Affairs Eric Davis Hodge. The organizations will be expected to persist in the discussions with other Governmental entities that take part in the development of the Interministerial Ordinance.

ANJL intends to continue to engage with the National Consumer Secretariat (SENACON) and the Secretariat for Digital Innovation (SEIDIGI) to discuss the possible operational and market consequences of the proposed requirements before the new regulations come into force.

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Source: BNL Data