Market Insights
Brazil's Ministry of Finance new ordinance sets rules for betting
The new rules include that only PSPs authorized by Brazil’s Central Bank can process payments for the vertical, besides legislating over betting payouts.
Brazil's Ministry of Finance new ordinance sets rules for betting
Mariana González Senior Marketing Analyst – PagSeguro Mariana González

Last Thursday (April 17th), the Brazilian government published an ordinance regulating payments and payment processing for betting operators in the country. Besides establishing that only PSPs authorized by Brazil’s Central Bank can process payments for the vertical, it also instates that payouts for bets must be made to the winning user in under 120 minutes.

Also regulating how betting payouts can and cannot be made to the users, the ordinance was published by the Secretariat of Prizes and Betting (SPA), which operates under Brazil’s Ministry of Finance. Portaria Normativa SPA/MF nº 615 can be accessed in full by clicking here (in Portuguese).

The ordinance is a clear step forward for the iGaming industry in Brazil – and for local payment partners able to keep up and comply with the evolving legislation. Keep reading to understand more about the new legislation, what it means for betting merchants and their payment strategies, and how to tailor your operations to follow it:

What the new ordinance institutes for iGaming payments and payouts

Through the Portaria Normativa SPA/MF nº 615, Brazil’s Ministry of Finance and its  Secretariat of Prizes and Betting establishes rules that must be observed for all online and offline gambling payments and payouts carried out in the country’s territory.

First of all, the payments made from users to the betting apps, and payouts from the apps for won bets, must be carried out exclusively by authorized payment operators. The payee’s financial account must always be within a financial institution regulated by the Central Bank of Brazil.

Furthermore, institutions not authorized by the Central Bank to intermediate betting transactions are forbidden from doing so. Only such institutions are allowed to offer accounts or services that permit financial transactions between betting merchants and betting users, including carrying out transactions related to betting prizes or the withdrawal of monetary betting prizes.

Betting payments and payouts must be done through a method that allows immediate clearance. Thus, the only payment methods accepted for transactions and payouts are:

  • instant payment Pix;
  • TED bank transfer;
  • debit or prepaid card;
  • book transfer (from one deposit account to another in the same bank).

Gambling merchants, their payment partners, and betting users are strictly prohibited from carrying out transactions through the following methods:

  • cash payments;
  • cash-based vouchers (such as Brazil’s boleto bancário);
  • checks;
  • cryptocurrencies;
  • from an account not previously registered by the betting user;
  • from third parties; 
  • credit cards or any other postpaid payment method;
  • any other payment option not listed in the allow-list (Paragraph 1 of the ordinance).

Payouts for bets won must be made to the winning users within up to 120 minutes from the end of the sports event or of the session to which the bets relate to, following the rules stated above regarding authorized processing and payment methods.

Compliant payment strategies for betting operators

Choosing the right payment partner for Brazilian betting operations is now more important than ever, and companies already aligned with the new ordinance will certainly stay ahead of the market.

Here at PagSeguro, we are directly connected to the Brazilian Central Bank and fully compliant with the country’s evolving betting regulations. Through this direct connection, we also ensure Pix transactions with no intermediaries and 24/7 availability – nothing better to guarantee instant payouts for your users within the timeframe instituted by the ordinance, which requires betting payouts to be paid in under 2 hours.

With our Payment Processing solution, you can process instant payments through Pix, available 24/7 – ensured by our direct connection to Brazil’s Central Bank – with the most competitive rates you’ll find out there. More methods and more Latam countries coming soon for iGaming, since our overall coverage is of over 140 local payment methods and a total of 17 Latin American countries.

We also offer a Payout solution, which makes single and mass transfers to payees in Brazil instantaneously in their local currency (Reais), with no traditional international banking fees, through API or through our dashboard, with no need for integration. It helps you easily navigate the complexities of international payments and gives both you and your payees the best payout experience, for quick and frequent betting processes.

As we’ve shown here, Brazil has the main betting market in Latin America, with the highest annual growth rate and total online volume. To break into the country’s iGaming industry, count on us – from our direct connection to Brazil’s banking system through our mother company PagBank (PAGS:NYSE) to our full compliance with Brazil’s evolving betting regulations, we are the best partner for you to enter the market the right way.

With this advancement in legislation, Brazil’s betting vertical is ever-more interesting for cross-border merchants to tap into. Rising by 49% per year, the segment ended 2023 with a volume of almost $ 7 billion, and is expected to reach $ 22 billion by 2026.

Start your betting operations in Brazil the right way with a partner ready to support you in all your payment and compliance needs. Click below to get in touch with us and understand more about our features and benefits for the betting industry:

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