Brazil Implements New Payment Rules Prohibiting Credit Cards and Cryptocurrency in iGaming and Sports Betting

In a significant development for Brazil's iGaming and sports betting sector, new payment regulations have been introduced, prohibiting operators from accepting credit card or cryptocurrency payments from bettors. The rules, outlined in Normative Ordinance No 615, published by the Regulatory Policy of the Prizes and Betting Secretariat (SPA) and the Ministry of Finance, aim to establish stringent guidelines for the country's burgeoning online gaming market.

This move aligns with the initial phase of a four-part regulatory rollout announced by the Ministry of Finance, following the ratification of Bill 3,626, also known as Law 14,790, by President Luiz Inacio Lula da Silva in December 2023. The first stage, which runs until the end of April, focuses on the publication of payment, technical, and security regulations.

The regulations set forth several requirements for both bettors and operators operating within Brazil's online gaming and sports betting industry. Notably, payments via credit cards, cryptocurrency, cash, payment slips, or cheques are strictly prohibited. Bets, withdrawals, and payouts must exclusively be conducted through electronic transfers between operators' and bettors' accounts, authorized by the Central Bank of Brazil.

Operators are also prohibited from accepting payments from unregistered accounts or transfers from third parties, and acting as intermediaries between players and operators. However, certain institutions authorized by the Central Bank of Brazil may offer transactional accounts under specific circumstances, such as facilitating prize payments to bettors.

Furthermore, operators are mandated to provide players with virtual accounts displaying their betting history over the past 36 months, open bet values, and financial balances, aiming to promote responsible gambling habits among players.

Additionally, operators must manage liquidity risks by establishing a financial reserve of at least R$5m held in federal public bonds at a Central Bank of Brazil-authorized financial institution, separate from other proprietary accounts.

These new regulations come into effect immediately, signaling Brazil's proactive approach to fully regulating its iGaming and sports betting market. The next stages of the Ministry of Finance's strategy include the publication of fraud policies, procedures for monitoring gambling advertisements, technical and security requirements for iGaming, and allocation of industry contributions to socially responsible causes, expected to conclude by the end of July.

By fLEXI tEAM