Initially scheduled to come into effect on January 1st, the ban on paying bets online by credit card was brought forward to this Tuesday (2). The Brazilian Association of Credit Card and Services Companies (Abecs) approved the measure at an extraordinary meeting.
Originally, the prohibition of payment to bets (electronic betting companies) with a credit card would only be valid from 2025, with the entry into force of the new electronic betting regulation model prepared by the Ministry of Finance. However, the growing debt of bettors made the private sector bring forward the decision.
“Abecs’ decision is based on the card sector’s growing concern regarding the prevention of over-indebtedness among the population and the growth of betting online in the country, which, among other consequences, can generate significant impacts on debt and consumption related to the retail and service sector”, highlighted the association in a note.
Abecs highlighted that the use of credit cards in the bets is inexpressive. The entity highlighted that the majority of bets online is paid via Pix.
“It is important to debate the veto on the use of other financing lines for betting purposes. As we know, Pix is currently the largest responsible for bids made in online games, having proven to be a means of accessing credit lines, such as overdrafts, and, consequently, an important vector of debt”, added Abecs .
The numbers, however, vary. Abecs estimates the volume of electronic bets paid on cards at less than 1%. In recent interview with Brazil Agencythe Secretary of Prizes and Bets at the Ministry of Finance, Regis Dudena, calculated the proportion at 5%. On the 26th, the president of the Central Bank (BC), Roberto Campos Neto, estimated the participation of cards at 10% to 15% of bets.
