Brazil Bank Chief Pushes for Credit Card Ban on Gambling

Brazil’s Banking Federation Chief Calls for Immediate Credit Card Ban on Gambling Payments

Brazil’s unregulated gambling market faces a critical challenge as the use of credit cards continues unchecked. The Brazilian Federation of Banks (Febraban) president, Isaac Sidney, is calling for the immediate implementation of a credit card ban on gambling transactions. Learn why Sidney believes advancing this measure is essential to protect Brazilian families from financial distress. Explore how Brazil’s tightening regulations aim to curb illegal gambling activities and safeguard consumers.

Com a evolução do comércio eletrônico, PayRetailers inova para revolucionar o mercado de pagamentos - Startups

Isaac Sidney, president of the Brazilian Federation of Banks (Febraban), is urging the Brazilian government to accelerate the implementation of a ban on using credit cards for gambling. This measure, set out in Normative Ordinance No 615, prohibits the use of credit, cryptocurrency, cash, payment slips, or cheques for gambling transactions. Only electronic money transfers will be permitted for deposits, bets, and withdrawals. Both player and operator accounts must be authorized by the Central Bank of Brazil.


ReadyNow

However, the current timeline enforces this ban only when the legal gambling market launches on January 1, 2025. Until then, the unregulated market still allows the use of these soon-to-be prohibited methods, raising concerns among financial authorities and industry stakeholders.

Sidney argues that delaying the credit card betting ban puts Brazilian families at risk. “We are very concerned about how much this could compromise family income and increase default, even increasing the cost of credit,” Sidney told journalists, emphasizing the potential economic impact on households.

A recent survey conducted by market research firm Hibou highlights the urgency of the issue. It found that 10% of Brazilians have experienced financial difficulties directly related to gambling. Furthermore, 65% of respondents indicated they knew someone who had suffered financial problems due to betting. This data underscores the need for prompt action to curb gambling-related financial harm.



br4bet
orange gaming

iGaming & Gaming International Expo - IGI

Government Efforts to Crack Down on Illegal Gambling Payments

To combat illegal gambling, the Brazilian government has intensified efforts to block unlicensed gambling transactions, particularly through Pix, an instant payment service overseen by the Central Bank of Brazil. By targeting Pix payments to unauthorized operators, regulators aim to disrupt the financial lifeline of illegal gambling sites.

Ari Celia, director of payment services company Pay4Fun, expressed confidence in the effectiveness of this approach. “If any commercial bank isn’t aware they have a company or client using illegal sites, as soon as they receive a warning from the Central Bank, they will shut down their bank account immediately,” Celia explained. Failure to comply will result in hefty fines, creating strong disincentives for banks to facilitate these transactions.

Challenges for Unlicensed Operators

The crackdown on Pix transactions creates significant barriers for unlicensed gambling sites. While some may turn to cash or cryptocurrency, Celia doubts the feasibility of these options. “Cash is limited, and many in Brazil no longer use it. Moving cash in an online operation requires local brokers and affiliates, complicating the process,” he noted. Moreover, buying cryptocurrency requires a registered exchange account, meaning operators must provide personal data, which is closely monitored by the Central Bank.

As Brazil’s government tightens regulations on gambling transactions, advancing the credit card ban could be a crucial step in protecting consumers and disrupting the unregulated market. Sidney’s call to action reflects growing concern over the financial impact of gambling on Brazilian households. By limiting payment options for illegal operators and enhancing oversight, Brazil aims to create a safer, more controlled gambling environment for its citizens.

The post Brazil Bank Chief Pushes for Credit Card Ban on Gambling appeared first on Gamingo News.

Brazil’s Banking Federation Chief Calls for Immediate Credit Card Ban on Gambling Payments Brazil’s unregulated gambling market faces a critical challenge as the use of credit cards continues unchecked. The Brazilian Federation of Banks (Febraban) president, Isaac Sidney, is calling for the immediate implementation of a credit card ban on gambling transactions. Learn why Sidney
The post Brazil Bank Chief Pushes for Credit Card Ban on Gambling appeared first on Gamingo News.