Brazil tightens gambling payment law to drive out illegal betting platforms

The Brazilian Ministry of Finance’s Secretariat of Prizes and Betting (SPA) has rolled out new regulations aimed at cutting off the flow of money to unlicensed gambling operators.

Under this directive, banks, payment processors, and financial platforms are now required to block any transactions linked to illegal betting platforms, tightening enforcement of Law 14.790/2023.

What’s changing?

Under the new ordinance, financial institutions and payment providers are not allowed to open or maintain accounts for companies involved in fixed-odds betting unless they are licensed by the SPA.

This also extends to any deposits, withdrawals, or prize payouts associated with those platforms.

Institutions must also now actively monitor for suspicious activity and report it to SPA within 24 hours using Brazil’s Electronic Information System (SEI).

These reports must include the account holder’s identification, linked Pix keys, account numbers, and reasons for the suspicion.

If the SPA finds that a financial provider is processing transactions for an unauthorized betting platform, it will issue a formal notice demanding detailed transaction records, immediate termination of the relationship with the operator, and even proof of steps taken to block future transactions.

Failure to comply with all of the above will likely result in regulatory penalties or even legal action.

SPA tightens the noose on the black market

Furthering the introduction of the amended law, SPA Secretary Regis Dudena has described it as a critical move to clamp down on offshore operators and protect Brazilian bettors from unregulated gambling activity.

“This measure, alongside site blocking and ad removals, helps choke off the financial pipeline to unlicensed sites that put users’ finances at risk,” Dudena said. “The goal is to close the loop on illegal activity.”

He added that this ordinance reinforces Brazil’s efforts to create a more secure, transparent and regulated betting environment.

Public lists and transparency

To support enforcement and assist institutions, the SPA will maintain a public register of authorized fixed-odds betting operators, operators whose license applications were rejected, and suspected illegal gambling sites reported to telecom authorities for blocking.

This register is designed to help those involved stay compliant while giving the public visibility into who’s licensed to operate legally in Brazil.

All in all, with legal betting options growing and licensing now underway, the SPA aims to protect consumers and ensure licensed operators aren’t undercut by the black market.

As Brazil continues refining its regulated gambling market, payment enforcement will be key to maintaining legitimacy and hopefully eliminate offshore competition.

The post Brazil tightens gambling payment law to drive out illegal betting platforms appeared first on ReadWrite.