Following the introduction of new rules, Brazilian gambling operators are not permitted to accept credit card or cryptocurrency payments. [Image: Shutterstock.com]

Big changes

Gambling operators in Brazil can no longer accept cryptocurrency or credit card payments with immediate effect. Checks, payment slips, and cash also fall under this new ban, and users can’t get free bets and bonuses anymore.

part of the initial phase of a regulatory overhaul

The Ministry of Finance and the Regulatory Policy of the Prizes and Betting Secretariat (SPA) published these new laws on Thursday, part of the initial phase of a regulatory overhaul.

Platforms can only process payments coming from bank accounts that are registered to the bettor and they now have an obligation to pay out all winnings and prizes within 120 minutes of settlement.

Leaving no stone unturned

Another incoming change will require operators to supply a virtual account to their users which will provide key insights into their betting activity. The information includes a 36-month transaction history, as well as details about their currently active wagers and overall balance.

Brazil President Luiz Inácio Lula da Silva signed legislation into law in December to create a federal gambling market.

Operators will also have to meet minimum liquidity requirements to make sure that they always have money on hand to meet payout obligations. This amount will initially be set at R$5m (US$952,018) and must be kept separate from other accounts with a Central Bank of Brazil-authorized bank.

Wide-ranging rules

The goal is to have all changes as part of the four-phase plan in place by the end of July, with the newly established SPA in charge of structuring the new regulations and publishing them.

Many jurisdictions don’t allow gambling platforms to accept debt-accumulating payment methods like credit cards, including the UK.

The initial phase focuses on payments and technical and security requirements for operators. The second phase will mainly look at anti-money laundering and terrorism financing, with stage three concerning advertising and iGaming-specific requirements. The final step relates to contributions from operators toward good causes.