The Payment Ordinance published by the Secretariat of Prizes and Betting of the Ministry of Finance aims to combat money laundering and guarantee the security of transactions in the betting market, in addition to increasing the transparency of financial transactions in the sector.
The document brings together a description of the payment flow, management of bettors' resources and operational processes for the financial security of the bet market.
For Leonardo Baptista, CEO and co-founder of Pay4Fun, the measure aims to guarantee responsible gaming. “You don't bet money you don't have, hoping to get results so you can pay on your credit card. We consider the federal government’s measure to encourage responsible gambling and avoid gambling disorder to be very important and necessary,” says the executive.
Pay4Fun is one of the main payment platforms for online betting in Brazil prepared to comply with the new rules. The company already offers its customers the option of paying by electronic transfer, authorized 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 for betting payment companies.
“Questionable practices and loopholes in legislation that were once commonplace will no longer be tolerated. Companies that wish 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 the suspension or even revocation of the license to operate,” says Camila Caresi, director of governance, risks and compliance at Pay4Fun.
Main changes for betting in Brazil in relation to payments:
Separate accounts for greater protection
Bookmakers will also have to have separate transactional accounts at financial institutions authorized by the Central Bank of Brazil. This measure aims to ensure that bettors' money is safe and protected.
Prizes paid within 2 hours
Winning bettors will receive their prizes within 120 minutes after the event ends. If the bookmaker does not have enough money to pay the prizes, they must use money from their proprietary account.
Betting houses with more responsibility
Bookmakers cannot offer bonuses or advantages to encourage betting, nor have agreements with financial institutions to offer credit to bettors. Betting advertising must also be responsible and cannot 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 further boosting the sector.
To understand all the details of the betting payment ordinance, access Pay4Fun's "X-Ray" available in Portuguese and English.
Founded in 2018, Pay4Fun is the first payment institution, operating in the sports betting sector, to receive authorization from the Central Bank of Brazil. Operating with more than 500 integrated websites in the entertainment segment, the company reached the mark of R$2.6 billion in financial transactions in 2022.
The company was considered the Best Payment Method for Latin America in the awards promoted by SAGSE 2022 and chosen as the Best Payment Method at the Brazilian iGaming Awards. In 2023, the company won the RA 1,000 seal, from Reclame Aqui, 3rd place as the best financial service company to work for in GPTW and 2nd place in the SBC Awards, in Barcelona, as payment innovation of the year.
To find out more about the company, visit the website or Linkedin.
Source: GMB
