Brazilian government defines new payment rules, by Pay4Fun

New payment rules for sports betting have come into force. SPA/MF Payment Ordinance No. 615/2024, published by the Ministry of Finance's Secretariat for Prizes and Betting, aims to combat money laundering and guarantee the security of transactions in the betting market, as well as increasing the transparency of financial transactions in the sector.

One of the main changes is the way payments will be made. From now on, bets and prizes can only be paid by electronic transfer between bank or payment accounts. Cash, slips, cheques, cryptocurrencies and credit cards are banned. Only Pix, TED, debit or prepaid cards will be accepted.

To understand and decipher the new measures, Pay4Fun has launched ‘X-Ray’, a document detailing the payment ordinance published by the Ministry of Finance.  For Leonardo Baptista, CEO and co-founder of Pay4Fun, the first payment institution authorised by the Central Bank to operate in the sports betting sector, the measure aims to guarantee responsible gambling. 

‘You don't bet money you don't have hoping to get a result and pay it off on your credit card. We consider the federal government's measure to encourage responsible gambling and prevent gambling to be very important and necessary,’ says the executive.

Pay4Fun is one of the main online betting payment platforms in Brazil that is prepared to comply with the new rules. The company already offers its customers the option of paying by electronic transfer, authorised by the Central Bank of Brazil, with the most diligent practices on the market.

The entry into force of the Ordinance also serves as a warning to betting payment companies. ‘The questionable practices and loopholes in the legislation that were once commonplace will no longer be tolerated. Companies wishing to continue operating in the Brazilian market will have to adapt to the new rules and invest in robust payment solutions. Failure to comply with the rules will result in severe sanctions, including suspension or even revocation of the licence to operate,’ says Camila Caresi, director of governance, risk and compliance at Pay4Fun.

Separate accounts for greater protection

Bookmakers will also have to have separate transactional accounts with financial institutions authorised by the Central Bank of Brazil. This measure aims to ensure that punters' money is safe and secure.

Prizes paid out within 2 hours

Winning punters will receive their winnings within 120 minutes of the end of the event. If the bookmaker doesn't have enough money to pay out the winnings, it must use the money in its proprietary account.

Bookmakers with more responsibility

Bookmakers will not be able to offer bonuses or advantages to incentivise betting, nor have agreements with financial institutions to offer credit to punters. Betting advertising must also be responsible and must not encourage gambling addiction.

For payment institutions that are prepared for the new requirements, the Ordinance opens up a world of opportunities. The online betting market in Brazil is still growing and the greater security and transparency provided by the Ordinance could be a decisive factor in boosting the sector even further.