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Brazil proposes bill banning payments to illegal gambling sites

Brazil betting

Brazilian legislators are working to introduce a law that will restrict gamblers’ use of credit and debit card payment methods at illegal internet gambling sites. This measure is designed to enhance the safety and integrity of the nation’s gaming and wagering sector.

Bill 1823/22, which is an ongoing examination by the lower house of Brazil’s parliament, will effectively change the inaccuracies of all payment cards, including credit and debit cards.

A member of the parliament said: “If the seller realizes that there is a risk of not receiving [the product], they will be dissuaded from accepting credit or debit cards or electronic money as a means of payment.”

For a bill to become law, it has to be submitted before the legislature and authorized by the senate. On the assumption that this happens, the Central Bank of Brazil (BCB) will take full accountability for monitoring and enforcing the regulatory framework that all financial organizations in Brazil will be mandated to follow.

Furthermore, the proposed and approved bill will deter sites that encourage child pornography and cut short all transactions on unlawful gambling and websites by forcing the hand of financial institutions to restrict debit and credit card payments.

READ: Best betting sites for gamblers in Brazil

The proposed law will permit a seamless financial transaction of a client to an unsanctioned site. After a proper review by the financial institution and confirmation that it is an illegal site, the transaction will be made null and void and a reversal will be initiated.

The Brazilian National Monetary Council has made several recommendations which accompany the proposed bill by the legislature. In a scheme to discern how all financial organizations will prohibit passage to illicit gambling programs, BCB may issue an official pass list or blacklist of all gambling sites to create a more efficient regulation and immediate intervention.

Previously, the law 12.865/13, which was initiated several years ago, was aimed at curtailing further access to unlawful gambling and websites that encourage child pornography.

The proposed legislation will be mandated to accomplish its legislative process and obtain authorization from the president, Jair Bolsonaro, before it can effectively enforce physical and online sales of a private commodity.

On condition that the bill is enacted, a total of 5% of sales made will be allocated to the Brazil National Health Fund and the Agency for International Tourism Promotion. The 95% remnant, which will cover expenses including taxes and payouts, will be distributed to the lottery operator.

Moving forward, the Senate had previously stated that it would suspend legalized gambling until after the forthcoming elections in October. Hence, if the proposed bill to prohibit payments to illicit gambling sites is acquired by the senate prior to the election, it will be delayed as well.

In the prospects of the proposed bill being enacted, the law would act as a double-edged sword, prohibiting payments to illicit gambling sites while allowing said sites to run the risk of giving away their services for free when monitored transactions are canceled and reversed to the consumer.

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