Crypto payments and betting bonuses affected by Brazilian regulatory
Crypto casinos are set to be among the sites that will be impacted by a major regulation change in Brazil that will outlaw betting bonuses and certain types of payments at online gambling sites.
The South American country had been seen as a major target market for many crypto casino operators, but the new laws could have a significant effect on the sector’s growth in Brazil.
Brazil’s Secretariat of Awards and Prizes (SPA) has published the ‘Normative Ordinances’, which establishes general rules for operators of sports betting and online gaming to follow.
As part of the changes, a ban on all types of credit card transactions has been introduced, in line with the rules in place around online gambling in countries such as the United Kingdom.
But the biggest impact for crypto casinos is the outlawing of cheque, cash and cryptocurrency payouts. Now, operators of online gambling sites in the country are being told they can only make payouts via electronic transfer. Payment providers will also need to be registered and accredited by the Central Bank of Brazil to be given the green light to operate in the industry.
“The SPA has established a period of six months for this prohibition to come into force,” said a statement that was released to explain the new update to online gambling regulations in Brazil. “The deadline will be counted from the publication of a specific SPA regulation on the matter.”
The Law No. 14.790 (Betting Law), which was authorised by Brazil’s President Luiz Inácio da Silva in December 2023, also means that betting bonuses will not be able to be offered. Firms have also been told they will have a window of two hours to pay out any winning bets made.
Operators of online gambling sites such as crypto casinos in Brazil will also be mandated to manage liquidity risks by putting in place substantial financial reserves. At least R$5 million (around $950,000) must be segregated from other proprietary accounts and held in federal public bonds through authorised financial institutions sanctioned by the Central Bank of Brazil.
The outlawing of crypto payments at online gambling sites comes shortly after Brazil confirmed that it is aiming to put its new finalised sports betting regulations in place by the end of July. New federal rules for land-based casinos in Brazil are also set to be debated by the country’s Senate.
