Pixbet gets all-clear after Brazil suspended licence of four betting operators

The unprecedented expansion of Brazil’s growing betting market hit a major setback last week as the Secretariat of Prizes and Betting (SPA) was forced to suspend four major gambling operators.

Among the four was Pixbet, one of the country’s most popular platforms and which is perhaps best known for its lucrative partnerships with Brazilian football clubs, including Flamengo and Corinthians.

The suspensions, issued on April 10, were the direct result of all four firm’s non-compliance with Ordinance No. 2, 104, which requires operators to submit their key technical certifications to regulators.

The companies targeted with the suspensions were TQJ-PAR Participações, 7MBR LTDA, Caixa Lotteries SA, and Pixbet Technological Solutions, which were all accused of failing to meet these mandatory obligations.

As a result of the ruling, the SPA effectively banned all four platforms from operating for up to 90 days, stipulating that the platforms must remain accessible to their user bases in order to allow them to withdraw any existing funds.

Of the four banned firms, Pixbet reacted the quickest, challenging the ruling immediately before winning a legal reprieve from a federal court judge, who agreed that the suspension was unjust.

Pixbet had a strong legal case behind it, stating it had submitted three of the four technical certifications in February and had issued the fourth the day before the suspension was issued.

Siding with Pixbet, the judge ordered their licence be immediately reinstated, citing that not doing so would inflict “disproportionate harm” on the firm.

The speed at which the decision was reversed was critical for both Pixbet and Flamengo, Brazil’s largest football club, which had just launched its new co-branded FlaBet platform together.

The consequence of a ban would have meant Flamengo would have been forced to strip all Pixbet branding ahead of its unveiling on Monday, April 14.

With 43 licensed gaming companies now operating in Brazil’s ever-evolving regulated betting landscape, the SPA’s swift non-compliance crackdown will undoubtedly have sent a clear message to everyone involved.

For now, the remaining three operators remain suspended and are unlikely to challenge the ruling until they each complete the required certifications.