Brazil's new online gambling regulations impose strict restrictions on payment methods, prohibiting the use of credit cards, cash, and cryptocurrencies for gambling transactions, and only allowing deposits and withdrawals through electronic transfers authorized by the central bank. The new rules require all funds to be directly transferred between the player's registered bank account and the operator's account, forming a fully traceable closed payment loop. Approved payment methods include the Pix and TED systems, aimed at enhancing financial transparency, strengthening anti-money laundering safeguards, and reducing fraud risks. Operators must comply with the SPA/MF Nº615/2024 regulation, ensuring all transactions are conducted through regulated channels.
Payment Method Restrictions and Regulatory Framework
Brazil's new online gambling rules impose strict restrictions on payment methods, prohibiting the use of credit cards, cash, and cryptocurrencies for gambling transactions. These measures aim to reduce fraud risks and protect player interests.
The regulatory body SPA restricts all transactions to interbank electronic transfers, requiring funds to be directly transferred between the player's bank account and the operator's account, forming a closed payment loop system.
Prohibited Payment Methods and Reasons
Brazilian iGaming regulations explicitly prohibit the following payment methods for gambling transactions: credit cards, cash, cryptocurrencies, checks, and payment slips. These restrictions are based on risk assessments and player protection considerations.
The main reason for prohibiting credit card transactions is to prevent players from falling into debt, as credit cards rely on funds that have not yet been used, which can cause severe financial problems for vulnerable individuals.
Allowed Electronic Transfer Methods
The new rules only allow deposits and withdrawals through electronic transfer methods authorized by the Central Bank of Brazil. The main approved payment systems include Pix (Brazil's instant payment service) and TED (Electronic Funds Transfer).
These systems are fully supported by legitimate operating platforms, handling 96% of transactions in the market, and becoming an important tool for the government to combat illegal gambling in the black market.
Closed Payment Loop System Requirements
All transactions must be conducted directly between the player's registered bank account and the operator's transaction account. Both accounts must be opened at financial institutions authorized by the Central Bank of Brazil.
This closed-loop system enhances regulatory capabilities, improves transaction traceability, and significantly reduces the risks of money laundering and fraud.
Regulatory Goals and Compliance Requirements
The new payment rules aim to create a clearer regulatory framework, strengthen anti-money laundering safeguards, and enhance financial transparency. The regulatory body believes that building a sustainable and trustworthy iGaming market is crucial.
Operators must comply with the strict provisions in the SPA/MF Nº615/2024 regulation, ensuring all transactions are conducted through approved electronic transfer methods.
The Core Role of the Pix System
Pix, as an instant payment service controlled by the Central Bank of Brazil, becomes the main channel for gambling transactions. The government has the power and system to suspend Pix payments to operators not licensed by SPA.
In 2024, betting transfers through Pix increased by 200%, showing the significant effect of this system in regulating the market.
Operator Compliance Practice Guide
As an operator, it is essential to ensure that players only make deposits, bets, and withdrawals through electronic transfers. Allowed specific methods include Pix, TED, debit cards or prepaid cards, and ledger transfers.
All transactions must be conducted through regulated channels, forming a closed-loop system, to strengthen regulation and reduce the possibility of fraud.
Regulatory Powers and Enforcement Measures
The Central Bank of Brazil has the power and system to communicate directly with commercial banks and licensed payment providers. This power enables the government to effectively monitor and enforce payment regulations.
The regulatory body can suspend payments to unlicensed operators, which is an important law enforcement tool in combating illegal gambling activities.
Market Impact and Implementation Effects
The new payment regulations are changing the way the Brazilian online gambling market operates. By limiting high-risk payment methods, the regulatory body aims to create a safer, more transparent gambling environment.
Since implementation, the use of electronic transfers, especially the Pix system, has significantly increased, indicating that the regulations are having the intended effect.
