IBJR Urges Brazilian Government to Reconsider Pix Betting Ban

The Brazilian Institute of Responsible Gaming (IBJR) has urged the Brazilian government to reconsider its proposed Pix betting ban. As Brazil prepares to launch its legal betting market in January 2025, a potential Pix ban could push players to unsafe alternatives. Experts argue that restricting Pix won’t curb financial harm but will raise consumer costs and benefit black market operators. Discover how this proposed legislation could reshape Brazil’s gambling landscape and why stakeholders are calling for a re-evaluation.

IBJR Urges Brazil to Rethink Pix Betting Ban, Citing Potential Harms and Market Impacts

The Brazilian Institute of Responsible Gaming (IBJR) has called on the government to rethink the proposed ban on using Pix for gambling transactions. The institute argues that the ban would not effectively reduce player debt and could have unintended consequences for Brazil’s rapidly evolving betting market. With the regulated market set to officially launch on January 1, 2025, this issue has sparked intense debate among lawmakers and industry stakeholders.

Federal deputy Luiz Carlos Hauly introduced bill PL 3717/2024 last week, which seeks to prohibit electronic payments for gambling, including the widely-used Pix instant payment service, managed by the Central Bank. The proposed ban, however, would not apply to federal entities such as the bank Caixa and its lottery licensees, indicating a potential discrepancy in its implementation.

Although Hauly’s bill is still pending dispatch, the IBJR has expressed concern over its implications. The institute warns that restricting Pix could inadvertently push players toward the black market, where alternative, often unregulated payment methods are readily available.

“We believe there is a need to rethink the proposed restrictions on Pix, which was designed to lower transaction costs,” the IBJR stated. “Blocking its use doesn’t seem to help with controlling debt and may, in fact, benefit sectors that charge higher fees, such as TED transfers, imposing unnecessary costs on consumers.”

The Rise of Pix in Brazil’s Betting Market

Pix, a real-time payment platform, has seen a 200% increase in betting-related transfers in Brazil since January, according to Central Bank president Roberto Campos Neto. This rapid growth underscores the platform’s popularity among bettors and the broader financial ecosystem in Brazil. In response to these trends, the Brazilian government had already announced plans to block Pix payments to unlicensed operators as part of its efforts to maintain a secure and regulated betting market.

Campos Neto, speaking at a conference hosted by Banco Safra, warned about the potential economic implications of the rising use of Pix for betting. The proposed ban aligns with government concerns about the possibility of regulated gambling increasing financial harm to vulnerable players.

Proposals to Safeguard Vulnerable Groups

In addition to the proposed Pix ban, two new bills were presented last week, aiming to introduce spending limits for vulnerable groups in Brazil. Senator Alessandro Vieira’s PL 3,718/2024 seeks to restrict gambling among the elderly, those registered in debt or credit protection registries, and low-income families under the CadÚnico social welfare program. Meanwhile, Congressman Elmar Nascimento’s PL 3,745/2024 proposes capping gambling expenditures at 15% of a person’s monthly income and introducing a ban on gambling between 9 pm and 6 am for individuals at risk of addiction.

The IBJR has voiced support for some of these protective measures, particularly those concerning social and financial welfare recipients. The government’s plans to ban the use of Bolsa Família subsidies for betting have received backing from the institute.

“We fully support any government initiative to stop the use of Bolsa Família subsidies for gambling,” the IBJR stated. “Our members are deeply committed to safeguarding vulnerable groups and minors, actively promoting a safe and regulated betting environment.”

IBJR Advocates for Responsible Regulation

In its mission to promote responsible gaming, the IBJR is also advising its members to expedite the ban on credit card usage for betting, as outlined in Normative Ordinance No 615. Initially set to be enforced on January 1, 2025, the IBJR’s members, who represent approximately 70% of Brazil’s betting market, have agreed to implement the ban sooner.

The IBJR argues that rather than blocking Pix, the focus should be on enhancing player protections and responsible gambling measures within the legal framework. By restricting safe, low-cost payment methods like Pix, the government risks driving bettors toward unregulated markets, which often lack necessary consumer protections.

The IBJR’s call for the Brazilian government to reconsider the Pix betting ban reflects a growing concern over the impact of restrictive financial measures on the country’s burgeoning gambling market. As Brazil prepares to launch its fully regulated market in 2025, stakeholders must find a balanced approach that addresses player protection while avoiding the pitfalls of pushing consumers into the black market. Responsible regulation, rather than blanket bans, appears to be the key to fostering a safe and thriving gambling environment in Brazil.