GMB – How does Octus Legal iGaming plan to expand its operations in the Brazilian market now that the law has been passed?
Rubio Teixeira - We are only including new products in our portfolio because we want to assist in the regulation of our country and seek ways to make the high cost of the license viable through joint ventures and mergers.
In your opinion, are the Treasury's requirements for authorizations very complex or simple? The requirements demanded by the Ministry of Finance are adequate to the importance and responsibility of a certification laboratory in sports betting and online gaming operations. These requirements are essential to ensure the reliability and security that the market demands.
The ordinance issued by the Ministry of Finance regarding laboratories and certifiers, although it does not require some rules that other countries may impose, recognizes the prior qualification of these companies internationally. This facilitates adaptation to the Brazilian market while maintaining the standards of excellence already established globally.
What does the accreditation of Quinel Ltd. by the Ministry of Finance as a certifying entity represent for Octus Legal iGaming? As a strategic partner, we celebrate the technical and operational recognition of Quinel by the Ministry of Finance. This achievement is one of the strategic ways Octus Legal iGaming operates in the market. Daily, we are approached by clients and leads interested in the federal license for sports betting and online gaming. Additionally, there is growing interest in state lotteries, whose tenders are published and open to operators.
This position consolidates us as an important hub for business expansion. Not only for sports betting operators but also for payment methods, game developers, investors, affiliates, among others.
What were the main challenges faced by the office in the process of approving Quinel?
The main challenge was meeting the requirements within a very short timeframe. To this end, we assembled a team dedicated exclusively to this process, which allowed us to achieve the desired results efficiently. Additionally, Quinel was already dealing with high demand for certifications from major casino studios, which required even more agile execution on our part. Since Quinel is a foreign company, it was also necessary to identify which required documents would be relevant in the Brazilian jurisdiction. This included sworn translation of documents beyond English and Spanish, ensuring compliance with local requirements.
How was this process, and why did Quinel seek you out? Octus is already an internationally recognized legal consultancy firm, and as a Portuguese-speaking and Brazilian founder, I am particularly committed to assisting our country in the best possible way. After the publication of Ordinance MF/SPA No. 300/24, we developed an exclusive service at Octus for certification laboratories. Our relationship with Quinel already existed, as many of our clients are game and casino providers who need certifications issued by laboratories.
When we presented our service to Quinel, it was very well received. They were very satisfied with the quality and speed of our work. Therefore, when the ordinance was published, we took the opportunity to strengthen our partnership and meet the demand, providing a fast and efficient service.
What are the main challenges faced by lawyers in unregulated or regulating markets like Brazil? The main challenges include pioneering new paths in emerging legislation and dealing with areas that have not yet been fully regulated. Our goal is always to find innovative legal solutions that meet the specific needs and intentions of each client. Moreover, the iGaming market is relatively new, and even with the available legislation, the lack of practice and real knowledge about the market's functioning can hinder a complete understanding.
Therefore, our role is not only to ensure regulatory compliance but also to guide our clients to overcome the lack of experience and operational maturity in the sector, providing the necessary support to navigate this dynamic and constantly evolving environment.
You collaborated with Quinel, which is a certifying company. Do you also work with betting operators to help them obtain their licenses? Yes, we are currently in the process of preparing documents for application. We work with several betting operators to help them obtain the federal license. While some are awaiting the publication of all ordinances, others have already started the process. We offer personalized support for each client, adapting our approach to their specific needs in an unprecedented moment in the history of the iGaming market in Brazil.
We are in constant contact with clients who want and are preparing to obtain the license in Brazil. The level of requirement goes beyond mere document organization; it also involves a broad understanding of the accounting and business aspects of various jurisdictions. Our goal is to optimize costs and time, creating unique opportunities for our clients and ensuring the entire process is as efficient as possible.
Who are Octus Legal iGaming's main partners in Brazil today?
Today, our main clients are Quinel, Betnacional, Aposta Ganha, Vai de Bet, Cactus, Cometa, Weebet, XSA, Esportiva.Bet.
What is your opinion on the current Brazilian iGaming market regarding compliance? Currently, players and consumers are not being supported due to the fact that bets are placed internationally, and marketing is done as a life-changing opportunity rather than entertainment.
Do you believe that the new measures being adopted by Loterj will be effective and lead to prosperous regulation in Brazil?
No, and they have already failed. The lack of cyber control is a major problem. The lottery's request is totally relevant, but due to limitations of Anatel, the blocks were made in other states.
We know that the office works with many gaming and betting companies in Europe, Africa, Central, and Latin America, but what are the specific plans for Brazil? To take the reverse path from what has been done so far, where we help Brazilians to internationalize. Now the reverse path is to help foreigners adapt to our country. And no one is more suitable than Octus Legal iGaming, which has been working in the market for over 5 years and is a pioneer in the field. Now we will have the opportunity to help our country grow, and it will be an honor to do so.
What are the main challenges faced by lawyers in unregulated or regulating markets? Unfortunately, the lack of knowledge and experience in the market. Often the way it has been regulated can backfire. That is, it ends up fostering the illegal market even more, a pattern seen in the legislation copy from Portugal and France where a large part of the sector is exploited by offshore sites even with legislation in place, as it is very difficult to control cyberspace and prohibit the population from accessing certain content, similar to what happens in Middle Eastern and Asian countries, where the population learns to bypass restrictions.
Source: Exclusive GMB
