Brazil Government Implements Stricter Payment Rules for Online Betting

In a move to tighten regulations surrounding online betting, Brazil’s Ministry of Finance, through its Secretariat of Prizes and Betting, has announced new guidelines for payment transactions in online betting. The regulation prohibits several payment methods, including cash, credit cards, bank slips, and cryptocurrencies.

New Decree in Brazil Mandates Electronic Payments for Online Bets

According to the recent decree published in Brazilian news agency Agência Brasil, online bets must now be paid exclusively through electronic transfers such as Pix, TED, debit cards, or prepaid cards. 

Additionally, bettors are required to have a registered account with the betting company to process payments. The prohibition of alternative deposit methods aims to enhance the traceability of fund origins and deter potential illicit activities.

Furthermore, the regulation stipulates that bettors should receive their prize payouts within 120 minutes following the conclusion of the betting event. This time frame applies to both real sports events and virtual online gaming sessions subject to bets.

To ensure the separation of bettor funds from those of betting operators, stringent measures have been established. Bettor funds cannot be utilized to cover operational expenses or serve as collateral for operator debts. This segregation aims to minimize financial mismanagement risks and safeguard bettor assets.

Government Mandates Financial Reserves for Brazil’s Betting Operators

Additionally, authorized betting operators are mandated to maintain a financial reserve of at least BRL5 million ($953,634), held in federal public securities. This provision acts as a precautionary measure against insolvency, ensuring the prompt payment of prizes and other dues to bettors.

The regulatory efforts come as part of a broader initiative to systematically structure the regulation of fixed-odds betting in the country. The Ministry of Finance has outlined a four-phase implementation plan, expected to conclude by the end of the first half of this year.

The establishment of the Secretariat of Prizes and Betting, under the purview of the Ministry of Finance, underscores the government’s commitment to comprehensive oversight of the betting sector. The Secretariat of Prizes and Betting’s mandate encompasses regulatory measures, anti-money laundering initiatives, and efforts to mitigate compulsive gambling behaviors, especially among vulnerable individuals.

Moreover, the Ministry of Finance has unveiled a comprehensive roadmap for the regulation of online betting markets, encompassing various aspects such as combating money laundering and addressing fraud issues related to fixed-odds betting.

These measures aim to foster a fair and transparent betting environment while safeguarding the interests of both operators and bettors. The burgeoning online betting market in Brazil has attracted significant attention from global players, with over 130 companies expressing interest in entering the market. Despite initial challenges, regulatory efforts seek to capitalize on the market’s potential.