The Prizes and Betting Secretariat of the Ministry of Treasury launched Ordinance SPA/MF 1,225 this Thursday (1st), defining the monitoring and inspection of online betting.
Thus, the agency’s Undersecretariat has full autonomy for these activities. Therefore, it will carry out continuous monitoring and will be able to carry out remote or in-person inspections of operators.
Ordinance provides for detailed inspection
The Subsecretariat for Monitoring and Inspection (SPA) will be responsible for:
- Monitoring that involves continuous data analysis
- Information and documents to verify the compliance of betting exploitation activities
- Monitoring operators to identify and mitigate risks of non-compliance.
The SPA even has the authority to “request information” essential for this analysis. Inspection is a more specific activity, focused on examining specific aspects of betting operations. This may occur:
- At the operator’s physical headquarters
- Remotely
Everything will depend on the need to evaluate the resources used by operators. The results of these inspections are documented and will generate a report called “Inspection Report”, which will detail the actions taken and propose corrective measures, if necessary.
Furthermore, the SPA will be able to coordinate with other public bodies to oversee the fixed-odds betting market, ensuring a comprehensive and efficient approach. Any obstacle imposed by operators to inspection may result in sanctions as specified in Ordinance SPA/MF No. 1,233.
See the rules below
I – monitoring: set of continuous and systematic monitoring activities, carried out through the analysis of data, information and documents, with the purpose of verifying the compliance of the exploration activities of the lottery modality of fixed-odd betting and betting operating agents with legal and regulatory standards or point out risks of non-compliance, including as support for inspection;
II – inspection: set of specific activities, including inspection, which cover access, acquisition and investigation of data, information and documents, with the purpose of determining the regularity of the activities of operating the lottery modality of fixed-odd betting and of betting operating agents, compliance with duties imposed by legal and regulatory standards and the eventual materialization of previously identified risk situations;
III – inspection: activity that may occur during the inspection and will be carried out remotely or in a physical environment, with the purpose of examining and evaluating specific aspects of the activities of operating the lottery modality of fixed-odd betting and betting operating agents, detect failures and ensure compliance with legal and regulatory standards;
IV – preventive and precautionary measures: measures considered necessary and urgent to eliminate, reduce, control or mitigate identified risks;
V – inspection team: team responsible for carrying out inspection of the exploration activities of the lottery modality of fixed-odd betting and betting operating agents;
VI – inspection form: document used by the inspection team to record data, information and parameters identified in the inspection;
VII – inspection report: document issued by the inspection team in which the procedures carried out, the analyzes carried out, the results obtained and the measures proposed at the end of the inspection actions are described; and
VIII – request for information: determination to provide information considered relevant for monitoring and inspection.
All monitoring and inspection of the activities of operating the fixed-odd lottery betting modality and betting operating agents will have national scope, under the responsibility of the SPA, in the exercise of supervisory powers.
Through Ordinance SPA/MF 1,225, the Prizes and Betting Secretariat may coordinate with other public bodies to supervise activities involving the exploration of the lottery modality of fixed-odd betting, with the aim of ensuring compliance with legal and regulatory standards.
The inspection measures apply, where appropriate, to the activities of individuals or legal entities that are not duly authorized by the Prizes and Betting Secretariat of the Ministry of Treasury to explore the lottery modality of fixed-odd betting.
Supervision of the activities involved in operating the fixed-odd lottery betting modality and betting operating agents will be carried out on a scheduled basis, ex officio or by court order.
SPA established its criteria in the Ordinance, namely:
From monitoring
Monitoring of the exploration activities of the fixed-odd lottery betting modality and betting operating agents will be carried out in a continuous and systematic manner by the Prizes and Betting Secretariat, and will cover the following monitoring modalities:
I – conduct, which will aim to monitor and analyze the adequacy of activities and betting operating agents to legal and regulatory standards; It is
II – prudential, which will aim to evaluate the efficiency and effectiveness of the system adopted by betting operating agents regarding the identification, assessment and treatment of risks to mitigate threats to their regular functioning, through the use of an organized framework for timely intervention when necessary.
From inspection
Supervision of the activities involved in operating the fixed-odd lottery betting modality and betting operating agents will be carried out on a scheduled basis, ex officio or by court order.
The scheduled inspection will be carried out through planning prepared by the Prizes and Betting Secretariat based on evidence and risk management.
Ex officio inspection will be triggered by the need for inspection identified by the SPA or by formal communication to the public administration.
Ex officio inspection, when triggered by formal communication to the public administration, must be preceded by factual verification, with the purpose of determining the existence of signs of veracity and the commission of an administrative infraction.
Inspection actions must be registered in the Electronic Information System – SEI, in a process classified according to the applicable legal hypotheses.
The inspection, once initiated, may continue for as long as necessary to clarify the facts.
From inspection
The inspection is intended to examine and evaluate specific aspects of the operating activities of the fixed-odd betting lottery modality and betting operating agents, as well as to detect flaws and ensure compliance with legal and regulatory standards.
The inspection may occur:
I – in a physical environment, when the need for on-site examination of materials, equipment and other resources used by the betting operating agent to operate the lottery modality of fixed-odd betting is verified; or
II – remotely, through remote contact or connection to a remote device with secure and unrestricted access to systems, platforms, data and other resources used by the betting operator agent to operate the lottery modality of fixed-odd betting.
The SPA may, at any time during monitoring and inspection, request information, which must be formalized by letter. Failure to comply with the request by the operator may give rise to the penalties provided for in specific regulations of the Prizes and Betting Secretariat.
From the inspection report
At the end of each inspection, SPA will issue an inspection report containing:
I – the inspection actions carried out;
II – the circumstances observed;
III – the results obtained from the inspection, if any;
IV – the analysis resulting from the inspection; and
V – the proposed referrals as a result of the inspection.
Within the scope of monitoring and inspection actions, SPA will be able to access data and information, as well as request, receive and obtain clarifications, technical, operational, economic-financial and accounting information, documents, certifications, certificates and reports from betting operating agents.
Operators will not be able to hinder SPA supervision under penalty of sanctions being applied as provided for in Ordinance SPA/MF No. 1,233, which defines how the Prizes and Betting Secretariat will sanction operators.
The Sub-Secretariat for Monitoring and Inspection of SPA, when observing, in the exercise of supervisory powers, the occurrence of signs of administrative infractions punishable under the terms of the legislation applicable to the lottery modality of fixed-odd bets, must initiate sanctioning administrative proceedings for investigation, which must be registered in the Electronic Information System – SEI. After that, the procedures defined in Ordinance 1,233 will be followed, regarding applicable sanctions.
