Brazil Bans High-Risk Betting Payments, Enforces Closed-Loop System
Brazil has implemented new online betting rules to enhance player protection and combat fraud. Key changes include a ban on high-risk payment methods like news, and the introduction of a closed-loop system for transactions.
The new regulations prohibit the use of credit cards, cash, and cryptocurrencies for gambling transactions. Instead, all deposits and withdrawals must occur between a bettor's registered bank account and the operator's transactional account. This closed-loop system aims to strengthen anti-money laundering safeguards and improve financial transparency.
The Central Bank-authorised payment method Pix has seen a significant increase in usage, surging by 200% in 2024. It now handles 96% of all gambling transactions in Brazil. Operators must use approved gateways like Pix and TED to remain compliant with the new rules, outlined in Normative Ordinance SPA/MF No615/2024.
Brazil's new betting payment rules prioritise player protection by banning high-risk methods and promoting transparency. The exclusive use of electronic bank transfers through approved institutions, with Pix as the major player, is expected to reduce fraud and financial harm to bettors.
