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May 9, 2024

Brazil Tightens Online Gambling Payment Rules: What You Need to Know

Aria Williams
WriterAria WilliamsWriter

Key Takeaways:

  • Brazil introduces new payment regulations prohibiting credit card and cryptocurrency transactions for online gambling.
  • The regulations are part of a broader initiative to ensure safer and fairer online gambling practices.
  • Operators are required to adhere to strict guidelines, including setting up a financial reserve and offering transparency in player transactions.

Last month, Brazil made headlines in the online gambling world with the introduction of fresh payment rules that significantly alter how operators can accept funds from Brazilian customers. Published in the Official Diary of the Union by the Regulatory Policy of the Prizes and Betting Secretariat (SPA) and the Ministry of Finance, Normative Ordinance No 615 marks a pivotal shift in Brazil's approach to regulated online gambling.

Brazil Tightens Online Gambling Payment Rules: What You Need to Know

These changes are just the beginning of a four-stage rollout of gambling regulations, a plan unveiled by Brazil’s Ministry of Finance in April. This initiative stems from Bill 3,626 or Law 14,790, which received President Luiz Inacio Lula da Silva's endorsement in December 2023. Alongside the payment regulations, this first stage includes technical and security standards aimed at enhancing the online gambling landscape.

Under the new rules, a variety of traditional and modern payment methods, including credit cards, cryptocurrencies, cash, payment slips, and cheques, are off the table for depositing funds into gambling accounts. Electronic transfers are now the sole approved method, with each account requiring authorization by the Central Bank of Brazil. This move aims to tighten the reins on financial transactions within the gambling sector, ensuring a transparent and secure environment for players and operators alike.

A Closer Look at the Regulations

Operators face stringent conditions under the new regulations. They cannot accept payments from accounts not registered to the player or engage in third-party transfers. Moreover, acting as an intermediary between players and operators is strictly prohibited.

However, there's an interesting provision for institutions authorized by the Central Bank of Brazil. They can offer transactional accounts for operators, facilitating the distribution of prize money to players. This process must be swift, with players entitled to receive their winnings within two hours of winning a bet.

To promote responsible gambling, operators are tasked with creating virtual accounts for players that detail their betting activity, including history, open bets, and financial balance, over the last three years. This initiative is designed to empower players with insights into their gambling habits, fostering better financial management. Additionally, operators are barred from offering any form of remuneration on players' accounts.

Another critical aspect of the regulations is the requirement for operators to maintain a financial reserve of at least R$5 million. This reserve, aimed at handling liquidity risks, must be deposited in a financial institution approved by the Central Bank of Brazil and held in federal public bonds, distinctly separated from other proprietary accounts.

Further Steps and Future Regulations

Brazil's commitment to a safer and fairer online gambling environment doesn't stop here. The SPA has outlined several fraud policies addressing anti-money laundering and counterterrorist financing. Moreover, recent regulations mandate that data centers servicing the gambling industry be located within Brazil, though certain conditions allow for overseas data transfer.

Looking ahead, the industry anticipates the publication of rules concerning gambling advertising and contributions to socially responsible causes. These developments are keenly awaited as Brazil continues to refine its online gambling framework, setting a precedent for regulation that balances operational freedom with player safety and integrity.

The introduction of these regulations signals Brazil's determined stance on creating a secure and transparent online gambling market. As the landscape evolves, players and operators alike must stay informed and adapt to these changes, ensuring compliance and embracing the benefits of a regulated environment.

About the author
Aria Williams
Aria Williams
About

Aria Williams, New Zealand's prominent voice in online casino game localization, masterfully fuses the thrilling world of gaming with the rich Kiwi spirit. Their deft touch ensures every game not only entertains but resonates deeply with the locals.

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