IBJR urges Brazil government to rethink proposed Pix betting ban
The Brazilian Institute of Responsible Gaming (IBJR) has urged the Brazilian government to reconsider its proposal to prohibit the use of Pix for betting, arguing that such a ban will not alleviate player debt and may inadvertently drive bettors towards unregulated markets.
As Brazil’s legal betting landscape prepares for its launch on January 1, 2025, government officials have voiced concerns regarding the potential increase in financial risks for vulnerable players. These apprehensions are heightened by the rapid rise in digital payment methods, particularly among bettors.
On September 25, federal deputy Luiz Carlos Hauly introduced bill PL 3717/2024, which seeks to ban electronic payment options for gambling transactions, including the widely utilized Pix service, under the oversight of the Central Bank. This prohibition, however, would not affect federal entities such as Caixa Econômica Federal and its licensed lottery operations.
Though the bill is pending legislative action, the IBJR is actively advocating for its suspension, asserting that limiting payment methods could exacerbate gambling-related issues by pushing bettors towards the unregulated black market.
“We urge a reconsideration of the proposed restrictions on Pix, which was initially designed to minimize transaction costs,” the IBJR stated. “Restricting its use does not effectively address debt issues and may even inflate costs by pushing players towards alternatives that impose higher fees, such as TED transfers.”
Surge in Pix Transactions for Betting in Brazil
According to Central Bank President Roberto Campos Neto, transactions using Pix for betting purposes have surged by an astonishing 200% since the beginning of the year. Despite this growth, government plans to restrict Pix for gambling will include blocking payments made to unlicensed operators.
During a recent conference organized by Banco Safra, Campos Neto highlighted the potential economic ramifications tied to the escalating usage of Pix within the betting sector.
Parallel to these developments, two additional bills have been introduced aimed at instituting spending limits for vulnerable demographics in Brazil. Senator Alessandro Vieira’s bill PL 3,718/2024 and Congressman Elmar Nascimento’s bill PL 3,745/2024 both target gambling behavior among at-risk individuals.
- PL 3,718/2024 seeks to curtail betting among the elderly and individuals listed on the active debt or credit protection registry, as well as low-income families enrolled in the government’s CadÚnico social welfare program.
- PL 3,745/2024 proposes to cap gambling expenditures at 15% of monthly income and prohibits gambling from 9 PM to 6 AM for those identified as being at risk for addiction.
Concerns Surrounding Bolsa Família and Gambling
The IBJR has expressed its endorsement for measures that limit access to gambling among participants of social assistance programs, including Bolsa Família. Finance Minister Fernando Haddad confirmed plans to ban the use of Bolsa Família funds for gambling activities during a recent interview with CBN.
The IBJR has stated that its members — who together represent roughly 70% of Brazil’s betting marketplace — are committed to adhering to such limitations. “We fully support the initiative to prevent the use of Bolsa Família benefits for gambling,” the IBJR emphasized.
“Our members are dedicated to protecting vulnerable groups and minors while promoting a secure and regulated betting environment.”
In alignment with these initiatives, the IBJR, alongside the National Association of Games and Lotteries (ANJL), has recommended that its members accelerate the implementation of a forthcoming ban on credit card usage for betting, as stipulated in Normative Ordinance No. 615. This restriction, initially set for introduction on the market’s launch date of January 1, 2025, will now be expedited across the board.
