LATIN AMERICA IN FOCUS

Brazilian municipal lotteries survive legal challenge, Bolivian regulators fight back against the black market, Playtech approved for Caliplay agreement and more.

LATIN AMERICA IN FOCUS

Brazil Federal Court Rejects Request to Halt Municipal Lotteries

Supreme Federal Court (STF) Minister Nunes Marques has ruled against suspending municipal lottery operations in Brazil through a preliminary injunction.

Marques’ decision, issued March 25, responds to a Claim of Non-Compliance with a Fundamental Precept (ADPF) filed by Brazil’s Solidarity party. The party sought to suspend municipal lotteries until the STF determines whether they violate the constitution in Brazil.

The Solidarity party argued municipal lotteries were creating a “truly chaotic scenario,” allowing jurisdictions to bypass federal Brazilian betting regulations and authorize companies without federal licenses to operate at the municipal level.

Marques has chosen not to suspend municipal lottery operations, though he has requested the Solidarity party to submit additional evidence supporting its claims within 10 days. He has also asked the Attorney General’s Office to provide its opinion on the matter before a final ruling is made.

 

Bolivian Gaming Authority Looks to Strengthen Fight Against Black Market

Marco Antonio Sánchez Vaca, executive director of the Bolivian Gaming Control Authority, has announced new measures aimed at curbing illegal gambling.

On March 26, Sánchez outlined an action plan that involves 6,500 checks and 727 inspections, looking to ensure betting operations are legal and compliant.

The authority will also enter into agreements with the Financial Investigation Unit, with the aim of easing the exchange of information and speeding up legal action.

“We will take the appropriate actions to sanction online gambling,” Sánchez said. “To this end, it is important to strengthen our regulatory framework, seeking to sanction both organizers and promoters of illegal activities, such as bingo and online betting.”

 

Brazil Betting CPI Leader Calls for Stricter Laws on Online Gambling Access

Sen. Soraya Thronicke, rapporteur of Brazil’s parliamentary inquiry commission (CPI) on betting, has called on politicians to support new bills aimed at restricting access to online gambling.

Thronicke expressed her concerns during the betting CPI meeting March 25. The commission was formed in November last year in response to growing fears over the effects of gambling, ahead of Brazil’s legal online market launch on Jan. 1.

Thronicke urged Congress to introduce new laws limiting public access to online betting platforms. At the hearing, Thronicke said: “We need to make it increasingly difficult [to access online betting sites]. We are here to make amends. We need to legislate to minimize the risks and damages of this activity.”

 

Mexico Approves Revised Agreement Between Playtech and Caliplay

Playtech has obtained antitrust approval in Mexico for its updated strategic partnership with Caliplay, allowing the companies to move forward with their planned changes.

The approval was announced March 21, with both Playtech and Caliplay expecting the revised deal to take effect on March 31. It will likely mark the end of a long-running dispute between the companies over unpaid fees, surrounding Caliplay’s option to redeem additional service fees under its strategic agreement with Playtech.

In September last year, Playtech and Caliplay moved to resolve their dispute by agreeing to new terms, which included Caliplay resuming payments of the contested software and services fees to Playtech.

Other aspects include Playtech owning a 30.8 percent stake in Caliplay’s newly incorporated U.S. holding company, Caliente Interactive. Additionally, the two parties will enter into a revised eight-year B2B software licensing and services agreement.

 

Brazil’s Regional Lotteries Association Challenges bet.br Domain Requirement

The National Association of Municipal and State Lotteries (ANALOME) has released a statement strongly condemning the use of the bet.br domain as a criterion for identifying illegal operators.

Since the launch of Brazil’s legal online market on Jan. 1, federally licensed operators have been required to use the Brazilian internet domain “bet.br” exclusively.

On March 21, the Secretariat of Prizes and Bets (SPA) issued Normative Ordinance No 566, which outlined the conditions, deadlines, and information flow requirements for financial institutions to report transactions involving bets placed with illegal operators.

On March 22, ANALOME released a statement calling for the ordinance to be revoked, claiming the bet.br domain requirement has negatively impacted public perception. Companies holding state or municipal licenses often use alternative domains, and it’s feared this ordinance will tarnish the reputation of those operators among bettors.

The association argues the ordinance is an attempt by the SPA to maintain a monopoly over lottery operations, undermining the autonomy of state and municipal authorities.

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