Gamblers in Brazil will no longer be able to pay operators using cryptocurrencies and credit cards, according to new regulations. This pertains to the iGaming and sports betting industry.
The new regulations were published in the Official Diary of the Union by the Ministry of Finance and the Regulatory Policy of the Prizes and Betting Secretariat (SPA). In this regard, Normative Ordinance No. 615 was established.
It is concurrent with the preliminary stage concerning the publication of the four-segment regulations, as announced by the finance ministry. It refers to the implementation of Bill 3,626, which President Luiz Inacio Lula da Silva endorsed in December 2023. This phase will conclude at the end of April.
Operators and participants engaged in online sports betting and gambling in Brazil will be obligated to comply with several provisions stipulated by the regulations. There will be no acceptance of credit card or cryptocurrency payments, cheques, payment papers, and cash.
Only electronic transfers between the accounts of operators and wagers are permitted for deposits, withdrawals, and payouts. Authorization from the Central Bank of Brazil is a prerequisite for all accounts. Wagering will not be permitted on unlisted accounts or transfers facilitated by intermediaries.
The interactions between operators and participants will be subject to consequence. In certain circumstances, institutions that have received authorization from the Central Bank of Brazil may be permitted to offer transactional accounts on behalf of operators.
It is mandatory for operators to provide participants with virtual accounts that encompass their betting activities. These accounts will contain historical player wagering information spanning three years, in addition to the current account balance and the total amount of open wagers.
In addition, operators will be obligated to manage liquidity risks by establishing a financial reserve at a Central Bank of Brazil-approved financial institution.
The subsequent phase in the strategy of the ministry of finance entails the publication of the SPA’s fraud policies. Rules pertaining to the spread of WMD, anti-money laundering regulations, and counter-terrorism finance regulations will all be a part of this.
In the third phase, the SPA will lay out the rules for keeping tabs on gambling advertisements and the specifications for the safety and technological aspects of online gambling.
In the fourth stage, guidelines for distributing corporate donations to ethical projects will be released. The month of July will see the conclusion of this last phase.
