Pix is an instant payment service controlled by the Central Bank and used by the majority of the gambling industry in Brazil as it enables transactions to occur in less than 10 seconds.  

Payments made via Pix to unlicensed operators will be blocked under Brazil’s new gambling regulations. The payment method will be key to the government’s illegal gambling crackdown ahead of the regulated market going live on 1 January 2025.

Campos Neto discussed the rising popularity of Pix via gambling sites at a conference organised by financial services company Banco Safra on Tuesday (23 September).

The Central Bank president pointed to the increase in Pix usage in relation to gambling this year, while warning about the potential fiscal impacts.

“We can map what Pix has done for these platforms and the growth since January has been quite large,” Campos Neto told the conference, as reported in Brazilian newspaper O Globo. “It has gone up by more than 200%.

Speaking to iGB in June Hugo Baungartner, CCO for local operator Aposta Gahna, said Pix is used by 99% of the online betting market. “It is really important and the government thinks they can block those operators through this payment method. It’s a really fair way to think,” he said.

Betting on the rise among those receiving welfare

Campos Neto also warned of the rising popularity of betting among those receiving financial benefits in Brazil.

According to Campos Neto, betting is becoming increasingly prevalent among those in receipt of Bolsa Família, the Brazil government’s social welfare programme.

“It is creating a perception that we may have a worsening credit quality,” Campos Neto explained. “We have been trying to help the government and congress with the data we have and the growth is significant.

“The correlation between people who receive Bolsa Família, low-income people, and the increase in bets has been quite large.”

José Francisco Manssur, former special secretary of the Ministry of Finance and a key part of Brazil’s online gambling legislation, has previously said access to betting should be limited among those receiving Bolsa Família, to protect them from financial harm.

Payments a hot topic in Brazil

Last week, Brazil’s government announced that it will begin to suspend operators that haven’t applied for a licence from 1 October onwards. It is unclear whether the ban on Pix will come into force at the same time.

Only those companies already active in Brazil and that have submitted a licence application will be allowed to operate during the transition period between 1 October and 31 December. From 1 January 2025, unlicensed operators will face sanctions.

Normative Ordinance No 615 banned the use of credit cards, crypto, cash, payment slips or cheques for gambling.