Brazil Implements Strict Payment Rules for Betting Operators

As per the new directive, all transactions between operators and players, including the payment of bets and winnings, are required to be conducted via electronic transfer, effectively banning the use of cash, cheques, payment slips, and even cryptocurrencies.

Major Payment Changes for Operators

The SPA’s latest ruling prohibits betting operators from accepting bets through traditional and digital methods that were previously commonplace. This includes not only cash and cheques but also eliminates the use of credit cards and virtual assets like cryptocurrency. This move is aimed at enhancing the transparency and traceability of transactions within the betting sector.

Ban on Bonuses and Free Bets

In addition to payment restrictions, the SPA has also stipulated that operators must not offer bonuses or free bets to players. This decision is likely part of a broader strategy to regulate and control gambling activities more strictly, reducing the risk of excessive gambling and ensuring fair play across the board.

Timeline for Regulatory Phases

This update comes as part of Brazil’s ongoing efforts to finalize its sports betting regulations. The regulatory framework is being established in four phases, with completion expected by the end of July. The first phase has already been set in motion, with the subsequent phases scheduled to conclude at the end of May, June, and July respectively.

Implications for the Betting Industry

These regulatory changes are poised to reshape the operational strategies of betting companies in Brazil. By enforcing electronic payments, the SPA aims to curb illegal betting activities and enhance the financial security of transactions. The prohibition of credit cards and cryptocurrencies as payment methods might challenge operators initially but could lead to a more controlled and secure betting environment.