The new Ordinance of the Secretariat of Prizes and Betting defines the entire structure of the SPA's operating model regarding the inspection of the sports betting and online gaming sector nationwide.
The SPA clarifies each stage of the Monitoring and Inspection Sub-Secretariat's operating process and provides the definitions as follows:
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 activities of operating the fixed-odds lottery and betting agents with the legal and regulatory standards or to point out risks of non-compliance, including as support for inspection;
II - supervision: set of specific activities, including inspection, which include access, obtaining and verifying data, information and documents, with the purpose of verifying the regularity of the activities of operating the fixed-odds lottery and betting agents, compliance with duties imposed in the legal and regulatory standards and the possible occurrence 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 fixed-odds lottery and betting agents, detecting failures and ensuring compliance with the legal and regulatory standards; IV - preventive and precautionary measures: measures considered necessary and urgent to eliminate, reduce, control or mitigate identified risks;
IV - preventive and precautionary measures: measures considered necessary and urgent to eliminate, reduce, control or mitigate identified risks;
V - inspection team: team responsible for inspecting the activities of the fixed-odds lottery and betting operators;
VI - inspection form: document used by the inspection team to record data, information and parameters identified during the inspection;
VII - inspection report: document issued by the inspection team describing the procedures performed, the analyses carried out, the results obtained and the measures proposed at the end of the inspection actions; and
VIII - request for information: determination that information considered relevant for monitoring and inspection be provided.
All monitoring and inspection of the activities of operating the fixed-odds lottery and betting agents will have a national scope, under the responsibility of SPA, in the exercise of its inspection powers.
By Ordinance SPA/MF 1,225, the Secretariat of Prizes and Betting may coordinate with other public agencies to inspect the activities of operating the fixed-odds lottery, with the aim of ensuring compliance with legal and regulatory standards.
The inspection measures apply, where applicable, to the activities of individuals or legal entities that are not duly authorized by the Prizes and Betting Secretariat of the Ministry of Finance to operate the fixed-odds lottery.
The inspection of the activities of operating the fixed-odds lottery and betting agents will be carried out in a scheduled manner, ex officio or by court order.
The SPA established its criteria in the Ordinance, namely:
On monitoring
The monitoring of the activities of the fixed-odds lottery and betting agents will be carried out continuously and systematically by the Prizes and Betting Department, and will cover the following monitoring modalities:
I - conduct, which will aim to monitor and analyze the adequacy of the activities and betting agents to the legal and regulatory standards; and
II - prudential, which will aim to evaluate the efficiency and effectiveness of the system adopted by betting agents regarding the identification, assessment and treatment of risks to mitigate threats to their regular operation, through the use of an organized framework for timely intervention when necessary.
Inspection
The inspection of the activities of the fixed-odds lottery and betting agents will be carried out in a scheduled manner, ex officio or by court order.
The scheduled inspection will be carried out through planning prepared by the Prizes and Betting Department based on evidence and risk management.
The official inspection will be triggered by the need for inspection identified by the SPA or by formal communication to the public administration.
The official inspection, when triggered by formal communication to the public administration, must be preceded by factual verification, with the purpose of determining the existence of evidence of veracity and the commission of an administrative infraction.
The 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 elucidate the facts.
Inspection
The inspection is intended to examine and evaluate specific aspects of the activities of operating the fixed-odds lottery and betting agents, as well as to detect flaws and ensure compliance with legal and regulatory standards.
The inspection may take place:
I - in a physical environment, when it is necessary to examine on-site the materials, equipment and other resources used by the betting agent to operate the fixed-odds lottery; or
II - remotely, through remote contact or connection to a remote device with secure and unrestricted access to the systems, platforms, data and other resources used by the betting agent to operate the fixed-odds lottery.
The SPA may, at any time during the monitoring and inspection, request information, which must be formalized by official letter. Failure by the operator to comply with the request may give rise to the penalties provided for in specific regulations of the Secretariat of Prizes and Betting.
From the inspection report
At the end of each inspection, SPA will issue an inspection report containing:
I - the inspection actions performed;
II - the circumstances observed;
III - the results obtained in the inspection, if any;
IV - the analysis resulting from the inspection; and
V - the proposed actions as a result of the inspection.
Within the scope of monitoring and inspection actions, SPA may 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 operators.
Operators may not obstruct SPA's inspection under penalty of being subject to sanctions provided for in SPA/MF Ordinance No. 1,233, which defines how the Prizes and Betting Secretariat will sanction operators.
When the SPA's Monitoring and Inspection Sub-Secretariat finds, in the exercise of its inspection powers, evidence of administrative infractions punishable under the legislation applicable to the fixed-odds lottery modality, it must initiate an administrative sanctioning process for investigation, which must be registered in the Electronic Information System (SEI). After this, it will follow the procedures defined in Ordinance 1,233, regarding the applicable sanctions.
Source: GMB
