The Brazilian Federation of Banks, or Fedaban, is pushing for an expedited prohibition on credit card use for online gambling, so the country’s online gambling business may be subject to more stringent laws sooner than anticipated. The president of Febraban, Isaac Sidney, recommended that the prohibition be put into effect prior to the start of Brazil’s regulated gaming industry in January 2025.
Early Credit Card Ban Urged
Febraban’s push for this change is tied to Ordinance No. 615, issued in April, which outlines payment method restrictions for gambling activities. The new rules will bar the use of credit cards, cryptocurrency, and cash for gambling deposits and withdrawals. Instead, only electronic money transfers, such as bank transfers, will be permitted. Though the ordinance is not yet in effect, players currently can still use credit cards in Brazil’s grey gambling market.
Sidney expressed concern about the dangers of continued credit card use in gambling, particularly the impact on personal finances. He stressed that, “allowing credit cards for gambling could lead to increased debt and higher consumer credit costs.” Febraban is advocating for an early enforcement to mitigate these risks.
In Brazil, Pix, the instant payment system, already stands as the leading option for gambling transactions. The government plans to restrict unlicensed operators from accessing Pix and other financial services, further tightening its grip on the sector. Additionally, the ordinance requires all gambling accounts to be authorized by the Central Bank of Brazil, reducing the possibility of unregulated operations.
With the official market launch approaching, Brazil is making significant strides to reshape its gambling landscape. Giovanni Rocco Neto, the newly appointed national secretary of Sports Betting, will oversee this transformation, working closely with the new gambling regulator to ensure economic development in sports betting.
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