Brazil, one of the largest regulated iGaming markets in the world, has set new rules which ban the use of credit cards and crypto currencies for payments related to gambling and sports betting.
The new rules were published by the Regulatory Policy of the Prizes and Betting Secretariat and the Ministry of Finance on 18 April in the national Official Diary of the Union, in the form of Normative Ordinance Number 615.
This new set of rules represents the beginning of the first stage of a four-part regulatory campaign that was presented last week by the country’s Ministry of Finance. This campaign will ultimately implement Bill 3,626, which was ratified by the Brazilian president in December 2023. The first stage is expected to be completed by the end of April and it will establish new rules regarding payments, technical aspects and security regulations.
Normative Ordinance Number 615 has established several new rules, with the first and most important being that iGaming operators in Brazil can no longer accept payments from credit cards, payments in crypto currencies or in cash. Moreover, payments in the form of payment slips or cheques are also prohibited.
All bets, withdrawals and payouts can be executed only through electronic transfers between the operators and their customers’ accounts. Moreover, the respective accounts have to be previously authorized by the Central Bank of Brazil. Operators will also have the obligation to deny payments from accounts not registered with the respective customer or from third parties.
Intermediaries between players and operators are strictly prohibited, but certain institutions authorized by the Central Bank are allowed to offer accounts on behalf of iGaming operators in some situations, for example to allow players to receive a prize that they won.
Winning Bets Paid Out in Less Than 2 Hours
Normative Ordinance Number 615 has also set a time limit for receiving prize payments on winning bets, operators must deliver that into the player’s account in at most 120 minutes.
The new rules also obligate operators to set up a virtual account for players in which they will be able to analyze details regarding their betting habits. This is expected to allow players to have a better understanding of their financial and betting information and make better decisions when it comes to managing their gameplay.
The respective virtual accounts will display the respective player’s betting history over the previous three years, with key aspects such as the total value of open bets and their financial balance on display.
Operators will also be in charge of managing their liquidity risk, including establishing a financial reserve of at least 5 million Brazilian Real, which would convert in around 950,000 U.S. dollars.
Source: “Credit cards and crypto banned under Brazil payment rules“. iGaming Business. April 18, 2024.