IBJR Members Fast-Track Credit Card Ban to October

Concerned about financial harm in Brazil’s online betting market? The Brazilian Institute of Responsible Gaming (IBJR) and the National Association of Games and Lotteries (ANJL) have fast-tracked the credit card ban for gambling to October. This move aims to curb problem gambling and protect vulnerable players. Are you curious about how this decision could reshape Brazil’s betting industry? Keep reading to uncover the details and implications of this accelerated regulation.

Brazil’s IBJR Fast-Tracks Credit Card Ban for Online Betting, Ahead of 2025 Regulation

The Brazilian Institute of Responsible Gaming (IBJR), alongside the National Association of Games and Lotteries (ANJL), has decided to expedite the ban on gambling with credit cards in Brazil to October. This decision comes as part of a broader effort to address concerns about the financial and social impact of betting in the country, well ahead of the full implementation of the Brazilian online betting market regulations set for January 1, 2025.

Why Expedite the Ban?

The push to bring forward the credit card ban followed extensive discussions with the Ministry of Finance. Originally, Normative Ordinance No. 615 mandated the ban on the use of credit cards, cryptocurrencies, cash, payment slips, and cheques for betting when Brazil’s legal online market launches in 2025. However, recent pressures and ongoing debates over player protection led the IBJR and ANJL to recommend the prohibition be implemented sooner.

In a statement, the IBJR, which represents about 70% of Brazil’s betting market, emphasized that the move aligns with its commitment to establishing a safe betting environment in the country. “IBJR firmly believes that regulation is the most efficient and necessary way to face these challenges, ensuring the protection of consumers and the state,” the organization stated on LinkedIn.

Meanwhile, the ANJL reported that most of its members had already removed credit cards as a payment option, favoring the widely-used Pix instant payment system. In an email shared with iGB, the ANJL clarified: “This is not a response to criticism from other sectors. Card payment is almost non-existent in the industry already. We are reinforcing a practice that is already widely used by the operators themselves, which is to offer players Pix.”

The Controversy Surrounding Credit Card Use

Opinions vary on the extent of credit card usage for online betting in Brazil. According to the ANJL, credit card payments account for less than 3% of total bets made on its members’ platforms, while the IBJR estimates this figure to be around 0.5%. However, Central Bank President Roberto Campos Neto recently claimed that digital gambling payments using credit cards might constitute between 10% and 15% of all transactions. Campos Neto noted the complexity of tracking credit card transactions through digital wallets, making it challenging to gauge the true scale of credit card use in gambling.

The concerns surrounding the use of credit cards revolve around their potential to facilitate problem gambling, particularly during the transitional period from October to December. Industry leaders and government officials worry that credit card gambling may contribute to players’ financial distress, thus fast-tracking the ban is seen as a crucial step in safeguarding vulnerable consumers.

Criticism and Regulatory Pressure

The Brazilian gambling industry has faced growing criticism from both government and private sector officials. Concerns have been raised regarding the social and fiscal impacts of betting, especially among vulnerable groups. The Brazilian Federation of Banks (Febraban) has previously advocated for an earlier implementation of the ban to mitigate financial risks.

Adding fuel to the debate, a recent study by market research firm Hibou suggested that 10% of the Brazilian population had experienced financial difficulties related to gambling. Additionally, a study by the Brazilian Society of Retail and Consumption (SBVC) claimed that 23% of respondents gambled away money intended for essentials like food and medication. These alarming findings have intensified calls for tighter regulation and increased industry responsibility.

Building a Safer Betting Market

The IBJR and ANJL are actively engaging with various stakeholders to promote a responsible betting market in Brazil. The IBJR is initiating discussions with government agencies, including the Ministry of Industry and Commerce, the Central Bank, and the Ministry of Health, to collaboratively develop effective measures that mitigate the adverse effects of gaming and betting activities.

The associations’ efforts aim to foster a balanced regulatory environment that not only ensures player protection but also supports the healthy growth of the gambling industry. They stress that the expedited credit card ban is part of a broader commitment to responsible gaming, compliance, and collaboration with the government.

By expediting the credit card ban in Brazil’s betting market to October, the IBJR and ANJL are taking proactive steps to protect consumers and address concerns around financial harm. This move not only aligns with the industry’s broader mission to promote responsible gaming but also showcases the willingness of betting operators to adapt to evolving regulations. As Brazil moves toward the full legalization of online betting in 2025, the fast-tracked ban sets a precedent for responsible practices and collaborative efforts between industry players and government authorities. This new chapter in Brazil’s betting market will be critical in shaping a safer and more sustainable gambling environment.