When identifying that a transfer is destined for a betting house, the application displays an alert with the question: “Is this transfer to a betting house?”
If the customer confirms, Nubank displays an informative message highlighting that, although some games are legalized in Brazil, there is no guarantee of winning.
In addition, the bank suggests the possibility of saving the money in a “little box” – a platform feature that allows for practical savings.
Some users questioned whether the feature would interfere with customers' personal decisions.
When asked, Nubank stated that it is “always looking for opportunities to improve the experience” of its customers.
In addition, it reiterates that it “frequently tests new products and solutions for a small portion of the user base,” implying that the alerts are not for everyone.
A stance contrary to economic freedom and regulated activity
“The betting sector is legalized by Laws No. 14,790/2023 and 13,756/2018 and regulated by ministerial decrees. By adopting this practice, Nubank is positioning itself against a completely legal activity in Brazil”, the associations state in a note.
Another point highlighted in the note is Nubank's lack of criteria in ignoring hundreds of illegal websites still operating in Brazil. “It makes no sense that alerts are not activated for these illegal operators, making the situation even worse instead of helping to strengthen regulation in the country,” says Plínio Lemos Jorge, president of ANJL.
The Associations also warn that according to section III of art. 7 of Law No. 12,865 of October 9, 2013, payment arrangements and payment institutions shall guarantee "non-discriminatory access to the services and infrastructure necessary for the operation of payment arrangements", a principle that Nubank ignored in its campaign, when it chose a single regulated business activity to demonstrate "concern".
The associations advocate equal treatment and respect for current legislation, in addition to reinforcing that the betting sector already contributes to Brazil’s development by paying taxes and generating formal jobs.
Repudiation Note on Nubank’s warning about betting sites
The associations AIGAMING, ABRAJOGOS and ANJL publicly express their repudiation of Nubank’s initiative to warn its customers against transfers made to betting sites. Such a measure violates the principles of equality and economic freedom, going beyond the bank’s role as a regulated financial institution.
The betting sector in Brazil is legalized by Laws No. 14,790/2023 and 13,756/2018, in addition to being regulated by a series of ordinances issued by the Ministries of Finance and Sports. In this sense, we believe that Nubank, by adopting this stance, is taking a stand against an activity recognized by Brazilian law.
Furthermore, we question the selectivity in the application of these alerts. As highlighted by the lawyer and president of ANJL, Plínio Lemos Jorge, the bank does not issue the same alert when the customer purchases items such as alcoholic beverages and cigarettes, also considered to cause addiction and harm to health".
"It is worth noting that section III of art. 7 of Law No. 12,865 of October 9, 2013, establishes that payment arrangements and payment institutions shall guarantee "non-discriminatory access to the services and infrastructure necessary for the operation of payment arrangements", a principle that Nubank ignored in its campaign, when it chose a single regulated business activity to demonstrate "concern".
Another point of concern is the fact that, while regulation advances to curb illegal practices, there are still hundreds of unlicensed betting sites operating in the Brazilian market. However, Nubank's alert is not activated for transactions made to these sites, worsening the problem and discouraging consumers from migrating to properly regulated operators.
“It makes no sense that alerts are not activated for these illegal operators, making the situation even worse instead of helping to strengthen regulation in the country,” says Plínio Lemos Jorge. president of ANJL.
We reiterate the need to respect current legislation and to provide balanced and fair treatment to all legal economic activities.
January 14, 2025
AIGAMING (International Gaming Association), ABRAJOGOS and ANJL (National Association of Games and Lotteries)
Source: GMB
