Lei das Bets 14.790: Payments Explained

In the past year Brazil saw 3.19 billion visits to betting platforms, a 75% increase from the previous year. The UK, previously the largest market, had only 550 million visits in the same period.

This huge growth has led to a process of regulation by the Brazilian Ministry of Economics. According to Project of Law 14.790, all sports betting and casino operators have until December 31st 2024 to become Legal.

More information about the entire process of becoming legal in Brazil can be found in this article.

Regulatory: How to be Authorized?

Cross-border betting companies must establish themselves as Brazilian entities (with a Brazilian Federal Tax ID — CNPJ) before they can offer their services. Also, when applying for a license all items must be considered:

• A member of the company's team must participate in the Regulatory Group;
• Respect all technical requirements in accordance with the Implement policies to prevent money laundering and terrorist financing;
• Promote responsible gaming practices;
• Ensure the integrity of bets;
• Connect to Payment Institutions authorized by the Central Bank of Brazil;
• Monitor user transactions and provide auditing of users and transactions.

How to Stay Compliant?

⏰ Synchronized Time Stamp across all components to ensure the accurate time-stamping of transactions. 🎛️ Control Programs to manage and monitor the overall operation of the system providing regular auditing of players and transactions. 🔐 Authentication Mechanisms to verify the identity of users and prevent unauthorized access, such as multi-factor authentication and designed to detect and respond to suspicious login attempts. ✅ Confirmation of Transactions performed by bettors with immediate feedback on the status of their betting activities and financial transactions. 📈 Liquidity and Risk Management where operators must have policies to manage their liquidity risk, setting limits based on their equity and having processes to monitor and mitigate risks. ☢️ Contingency Plans which must include additional sources of funds and procedures to handle liquidity stress. 🔎 Annual Reviews containing policies need to be reviewed and approved annually by industry reports.

The Big 3: Important to Know

1 . Only authorized institutions can handle payments between playrs and the betting operator. No intermediaries allowed!

2 . All deposits and cashouts are done through electronic transfers between your registered account and the betting operator's account

3 . Betting operators can't use the client's money for their expenses or prizes—they can only hold it for your bets.

Now we can move forward to all the Payments and Bank Accounts needed, the basic infrasctructure to fit operators in the new arrangement.

Payments Accounts

Transactional Account

Transactional Accounts are all graphic accounts to receive deposits from bettors and pay out their winnings.

• Funds can only be used for paying prizes—not for the operator’s expenses.
• Operators can't share any investment gains from these accounts with bettors.

Proprietary or Treasury Account

This is the operator’s own account, used for covering operational expenses and managing liquidity.

• Funds here belong to the operator and can be used freely.
• After paying winnings, operators can transfer their earnings from the transaction into this.

Reserve Account

These bank accounts are a safety net to ensure prize payments in case of insolvency, and they must hold a minimum of BRL 5M in federal government bonds.

• Separate from transactional and proprietary accounts.
• Can only be used with prior authorization (SPA).

See how all these accounts can work:

Source: Claudio Namikata

Note: Numbers 1, 2, 3 and 4 represent Trio's Exclusive UX for deposits and cashouts. The flows are available as an interface to serve our client's users and it can be added through our SDK. [know more]

Pix: the only payment your operation needs to Succeed

As stated by law 14.790 only Digital and Instant payments methods will be accepted to make deposits on betting platforms and websites.

Beware that other Payment Methods previously valid will no lonber be accepted, such as:

• Payment Slips (boleto)
• Cash
• Checks
• Virtual Assets
• Cryptocurrencies
• Payments from unregistered accounts
• Payments from third parties
• Credit Cards
• Post-paid payment instruments.

In this new scenario, operators must rely on safe, fast and robust Pix providers who are Payments Institutions approved by the Central Bank to keep their operation running.

Trio: Pix das Bets

At Trio, we make payments simple and secure. As a Payments Institution and Direct Participants of the Pix arrangement, we are approved and secured by Brazil's Central Bank.

We also have the complete infrastructure necessary to comport your payments operation in Brazil, developing all features and graphic accounts to keep Transactional and Proprietary accounts running flawless. That is why we are known as "Pix das Bets". Talk to our specialists to hop on board.

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