🙈Brazil🇧🇷: regulatory loophole allows illegal betting sites to withdraw funds even after blocks

🙈Brazil🇧🇷: regulatory loophole allows illegal betting sites to withdraw funds even after blocks

These platforms use payment institutions (IPs), which do not require authorization from the Central Bank to move funds.

▶️What’s the key issue?

👉Under current regulations, a payment institution requires official authorization from the Central Bank only if it transfers more than 500 million reais (92.4 million USD) within a 12-month period. As a result, smaller companies enjoy relative operational freedom.

👉Additionally, for regulatory oversight to apply, the company must hold at least 9.24 million USD in prepaid accounts. Amounts below this threshold are exempt from verification.

▶️Formally, there are no immediate charges against these IPs. However, if an institution applies for a full operating license, these practices could result in negative consequences during the review. In repeated cases, the regulator may notify the Federal Police.

▶️Who is the regulator? — The Secretariat for Prizes and Betting (SPA) of the Ministry of Finance.

▶️Context: Brazil’s betting market has been regulated since January 2025. Currently, 78 companies hold licenses, 17.7 million Brazilians are registered on 182 authorized platforms, and the SPA, together with the National Telecommunications Agency (Anatel), has blocked 15,463 illegal sites. Furthermore, the regulator has ordered the freezing of bank accounts linked to illegal transactions. In the past 6 months alone, the SPA closed 255 betting accounts and 45 corporate accounts.

#news #Brazil #gambling

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