Brazilian Institute of Responsible Gaming Urges Government to Rethink Pix Ban for Betting

The Brazilian Institute of Responsible Gaming (IBJR) has urged the government to reconsider its plan to ban the use of Pix, the popular instant payment service, for betting, arguing that such a ban would not effectively reduce player debt. With Brazil’s legal betting market set to launch on January 1, 2025, concerns have been raised by government officials about the potential financial harm that regulated gambling might pose to vulnerable players.

On September 25, federal deputy Luiz Carlos Hauly introduced bill PL 3717/2024, which seeks to prohibit the use of electronic payment methods, including Pix, for gambling. Pix, operated by Brazil’s Central Bank, would still be available for use by federal entities such as Caixa Bank and its lottery operators. While Hauly’s bill is awaiting further review, the IBJR has been vocal in its opposition, stressing that the proposed restrictions could drive bettors toward the black market, where alternative, less regulated methods of gambling might be used.

“We believe there is a need to rethink the proposed restrictions on Pix, which was designed to lower transaction costs,” the IBJR said. “Blocking its use doesn’t seem to help with controlling debt and may, in fact, benefit sectors that charge higher fees, such as TED transfers, imposing unnecessary costs on consumers.”

Recent data shows a sharp increase in Pix usage for betting in Brazil, with Central Bank president Roberto Campos Neto revealing that betting transfers via Pix have surged by 200% since January. The Brazilian government has already announced that payments to unlicensed operators through Pix will be blocked. At a conference hosted by Banco Safra, Campos Neto also warned of the potential economic impacts of the rising use of Pix for gambling.

In addition to Hauly’s bill, two other bills were introduced last week, aimed at protecting vulnerable groups from excessive gambling. Senator Alessandro Vieira’s PL 3,718/2024 proposes restrictions on betting for the elderly, individuals listed in active debt or credit protection registries, and low-income families enrolled in the CadÚnico social welfare program. Congressman Elmar Nascimento’s PL 3,745/2024 would limit betting expenditures to 15% of a person’s monthly income and implement a nighttime ban on gambling between 9 p.m. and 6 a.m. for those at risk of addiction.

One of the key concerns raised by the IBJR relates to betting by recipients of the Bolsa Família social welfare program. The Brazilian government has expressed intent to ban the use of the Bolsa Família card for gambling, with Finance Minister Fernando Haddad recently affirming this plan. The IBJR has shown full support for these measures, stating that its members, who represent approximately 70% of Brazil’s betting market, are committed to upholding restrictions on gambling by vulnerable individuals.

“We also fully support any government initiative to stop the use of Bolsa Família subsidies for gambling,” the IBJR said. “Our members are deeply committed to safeguarding vulnerable groups and minors, actively promoting a safe and regulated betting environment.”

The IBJR, alongside the National Association of Games and Lotteries (ANJL), has also recommended that its members accelerate the ban on credit card use for betting, a prohibition outlined in Normative Ordinance No. 615. The ban was originally set to take effect when the regulated betting market launches in January 2025, but IBJR members have agreed to implement it ahead of schedule.

By fLEXI tEAM