IBJR urges Brazil government to rethink proposed Pix betting ban
With the Brazil legal betting market set to launch on 1 January 2025, government officials have expressed concerns that regulated gambling could increase financial harms for vulnerable players.
Last Wednesday (25 September), federal deputy Luiz Carlos Hauly presented bill PL 3717/2024 to prohibit the use of electronic payments for gambling, including popular instant payment service Pix, which is controlled by the Central Bank. The ban wouldn’t apply to federal entities such as the bank Caixa and its lottery licensees.
Hauly’s bill is still awaiting dispatch, but the IBJR is urging the government to halt its progress, believing it could have a harmful impact on bettors who may look to the black market for alternative methods to gamble.
“We believe there is a need to rethink the proposed restrictions on Pix, which was designed to lower transaction costs,” IBJR said.
“Blocking its use doesn’t seem to help with controlling debt and may, in fact, benefit sectors that charge higher fees, such as TED transfers, imposing unnecessary costs on consumers.”
Pix usage for betting on the rise in Brazil
Last week, Central Bank president Roberto Campos Neto revealed betting transfers using Pix in Brazil had increased 200% since January.
There are already set to be restrictions on Pix for gambling, with the government announcing payments made via the service to unlicensed operators will be blocked.
At a conference organised by financial services company Banco Safra, Campos Neto warned of the potential economic impacts of rising Pix usage.
Also presented last week were two bills seeking to introduce spending limits on vulnerable groups in Brazil. Senator Alessandro Vieira proposed PL 3,718/2024, while PL 3,745/2024 is being led by Congressman Elmar Nascimento.
PL 3,718/2024 would restrict betting among the elderly, those registered in the active debt or credit protection registry as well as low-income families on the government’s CadÚnico social welfare programme.
PL 3,745/2024 would limit betting spend to 15% of monthly income, as well as introduce a ban on gambling between 9pm and 6am for those at risk of addiction.
Bolsa Família betting a concern
TH IBJR did express support for limiting betting among those receiving social and financial welfare, including government programme Bolsa Familia.
The minister of finance, Fernando Haddad, told CBN last week that the government plans to ban the use of the Bolsa Família card for betting.
The IBJR said its members, which account for approximately 70% of Brazil’s betting market, will adhere to such restrictions.
“We also fully support any government initiative to stop the use of Bolsa Família subsidies for gambling,” the IBJR added.
“Our members are deeply committed to safeguarding vulnerable groups and minors, actively promoting a safe and regulated betting environment.”
The IBJR, alongside the National Association of Games and Lotteries (ANJL), has advised its members to expedite the ban on credit cards for betting set out in Normative Ordinance No 615.
All of the IBJR’s members have agreed to bring forward the prohibition, which had been set to come in from the market’s 1 January go-live date.