Abecs prohibits the use of credit cards as a means of payment for bets in Brazil (Image: iStock.com/bluecinema)
The board of Abecsan association that represents the electronic payment method sector in the country, approved on Tuesday the immediate ban on the use of credit cards as a means of payment in online betting and games (Bets) in Brazil.
The decision in an extraordinary meeting, according to Abecs, anticipates a measure that was already planned by the Ministry of Financebut only effective in January 2025.
- What are the top “Money Picks” for this month? Money Times listened to analysts from across Faria Lima to find out; see the result here
“Abecs’ decision is based on the card sector’s growing concern regarding the prevention of over-indebtedness among the population and the growth of online betting in the country,” he said in a statement.
Sports betting was released in Brazil in December 2018, with the expectation that regulation would take place within a maximum of four years, which did not happen.
Last year, Congress approved the first part of the regulation sent by the president's government Luiz Inácio Lula da Silvaand a second stage with rules defined by the Ministry of Finance came into force in October. Abecs highlighted that the use of credit cards within this segment “revealed to be insignificant”. And he emphasized that it is important to debate the veto on the use of other lines of financing for betting purposes.
Betting companies have proliferated across the country since its release in 2018, but it was after the 2022 Football World Cup that investment in the sector really began to grow in Brazil.
On Monday, the Minister of Finance, Fernando Haddadsaid that the government is discussing limiting payment methods for online betting, including not allowing the use of Bolsa Família resources for this purpose.
A survey carried out by Itaú showed that Brazilians lost 23.9 billion reais in sports betting between June 2023 and June this year. According to the study, bets generated around 68.20 billion reais in the country during the period.