Credit Cards and Crypto iGaming Payments Banned in Brazil
New payment rules have been introduced for Brazil’s regulated online gambling market that prevent operators from accepting payments by credit card or cryptocurrency from Brazilian customers.
The rules were published last month by the Regulatory Policy of the Prizes and Betting Secretariat (SPA) and the Ministry of Finance in Brazil’s Official Diary of the Union in the form of Normative Ordinance No 615.
The new rules are part of the first stage of the four-stage introduction of gambling regulations announced by Brazil’s Ministry of Finance in April. The ministry was referring to its implementation of Bill 3,626, also known as Law 14,790, which President Luiz Inacio Lula da Silva ratified in December 2023. Also included in the first stage were technical and security regulations.
While complying with the new rules may be a lot of work for operators, they are undoubtedly good news for online baccarat players. It is expected that all new regulations will be announced by the end of July, and players can then look forward to safe, fair, accessible and convenient online baccarat sites.
Tightening Payment Restrictions for Licensed Operators
Under the new regulations, operators and players cannot use credit cards, cryptocurrency, cash, payment slips or cheques to deposit funds. Instead, funds can only be moved through electronic transfer. Furthermore, all accounts need to be authorized by the Central Bank of Brazil.
Operators are not allowed to accept payments from an account that is not registered to the player or transfers from a third party. The rules also forbid acting as an intermediary between players and operators.
However, with authorization from the Central Bank of Brazil, certain institutions are permitted to provide transactional accounts for operators in specific circumstances, for instance, to award players with their prize money. The rules also stipulate that players must receive their prize money from winning bets within two hours.
Helping Players Manage Their Finances
Under the new payment regulations Brazilian operators are required to create a virtual account that displays specific players’ details about their betting habits, designed to help players track their betting activity and manage their finances. The accounts will display information such as the betting history over the last three years, the total value of open bets, and players’ financial balance. Additionally, operators are prohibited from offering any remuneration on accounts owned by the player.
Furthermore, operators will handle liquidity risks by setting up a financial reserve with a minimum value of R$5 million. This reserve must be deposited at a financial institution approved by the and held in the form of federal public bonds, kept separate from other proprietary accounts.
Further Regulations to Be Introduced
Brazil has been working hard to create a safe and fair online gambling environment. The SPA has also published a number of fraud policies that cover anti-money laundering and counterterrorist financing rules.
Earlier this week, rules covering data centers were published specifying that they must be located in Brazil. However, there are conditions under which data may be transferred out of the country. For instance, if the country has an International Legal Cooperation Agreement with Brazil on civil and criminal matters. Data holders overseas are required to authorize the transfer of data in advance, and the technical area of the Ministry of Finance must have secure and unrestricted access to the data.
Additionally, the operating agent must replicate its database and information within Brazil, ensuring that all databases are continuously updated and periodically tested to maintain uniform content.
The operating agent is also required to have a business continuity plan for situations that may jeopardize the data. This plan should outline potential loss scenarios, include a risk assessment, and define preventive and mitigative actions, along with assigning responsibility for these actions.
In the coming weeks, rules regulating gambling advertising are expected to be published and rules covering industry contributions to socially responsible causes are also due to be published.
