Brazil gambling regulator outlines payment rules for new market
The SPA has published rules on payments ahead of the launch of regulated sports betting.
Brazil.- The Prizes and Betting Secretariat (SPA), which is to regulate the future betting market in Brazil, has published ordinances on payment authorisations. The ordinance states that transactions for deposits, withdrawals and prize payments on the regulated market will only be permitted electronically in the form of Pix, electronic transfer (TED), debit and prepaid cards and standard bank transfers authorised by the Central Bank (BACEN).
Licensed operators will not be allowed to accept payment by credit card or through cash, bank slips, cheques or virtual assets including cryptocurrencies. The ordinance also clarified that payment providers must be registered and accredited by BACEN. Prizes must be paid to customers within 120 minutes from the moment a sporting event or virtual game finishes.
The ordinance also refers to the prohibition of sign-up incentives including bonuses and free bets under Brazil’s sports betting legislation signed by President Luiz Inácio da Silva in December.
Timeline for Brazil’s regulatory framework
Brazil’s Ministry of Finance has set out a timetable for the creation of policies for the new gambling regulator, the Prizes and Betting Secretariat (SPA). While the ministry has yet to appoint a president for the SPA, it has clarified that there will be four phases for the creation of regulatory policies.
Phase one involves the ordinances on payment systems as well as the security of betting systems, commercial authorisation procedures, the operation of fixed-odds betting, and certification requirements. Phase two in May will involve further ordinances on money laundering and crime prevention and rules related to customer rights.
Phase three in June will see the publication of ordinances on technical and security requirements for online gaming, monitoring and supervisory rules and sanctions for breaches in the lottery sector. Finally, in July, phase four would see ordinances on responsible gambling, including measures for the monitoring and prevention of pathological gambling and rules on social allocations.
Meanwhile, the Brazilian Senate is to debate bill 2,234/2022, which proposes federal rules for land-based casinos, horseracing betting and jogo do bicho instant win sales. The Senate Constitution and Justice Commission (CCJ) took up the bill on Wednesday.
