‘A NEW ERA AND NEW CHALLENGES’  The role of the IBIA Brazil Payment Provider Forum. By Ari Celia (Pay4Fun) and Marcelo Bueno (Z.RO Bank), co-chairs of the IBIA Payment Provider Forum.

Brazil’s long-awaited regulation of online betting and gaming, in effect since January 1st of this year, marked a milestone in the development and oversight of the country’s digital and gambling economies. After years of anticipation, the sector is now equipped with a robust legal framework – crafted under the leadership of the Secretaria de Prêmios e Apostas (SPA) and supported by the National Congress – that provides for consumer protection, responsible play, product integrity and public-revenue generation.

Yet while the legal foundation is finally in place and the opportunities are significant, we need to address the risk unregulated sports betting poses to the market and the sports-integrity ecosystem

Threats from Unregulated Betting Platforms

Licensed operators – those who have committed to the rules and now contribute to Brazil’s tax base – continue to face an entrenched and dangerous adversary: the sprawling, persistent, illegal-betting sector. These unregulated platforms do more than just siphon off market share. They undermine trust, distort consumer behavior, and open the floodgates to a host of financial and social issues. They are the primary source of player-protection and sports-integrity concerns.

Among the most pressing concerns is money laundering. Unlicensed operators, operating outside of the reach of Brazilian oversight, often serve as convenient vehicles for disguising illicit funds. With little to no enforcement of Know Your Customer (KYC) obligations, and offering anonymity, rapid movement of funds and little traceability, these platforms are very attractive for organized criminals looking to launder illicit funds. These can also be linked to the manipulation of sports competitions and related betting. When left unchecked, such activity can destabilize the regulated financial system and undermine national efforts to combat wider financial crime.
Equally damaging is the proliferation of fraud. From identity theft and fake promotions to the manipulation of software and refusal to pay winnings, illegal sites frequently engage in practices that defraud customers while giving the appearance of legitimacy. These tactics are especially harmful in a nascent market like Brazil’s, where consumer awareness is still developing and digital literacy varies widely.

Perhaps the most insidious threat is reputational. The blurred lines between legal and illegal offerings – amplified by social media influencers who promote unlicensed betting as a path to quick income – risk eroding public confidence in the entire sector. If left unchallenged, this can undermine the credibility of legitimate operators, fuel skepticism about gambling regulation, and compromise the industry’s long-term growth, all of which are essential in the fight against sports-betting-related match-fixing and fraud.
Some may argue that these challenges are common to all newly regulated markets. That is true. But Brazil possesses a strategic advantage that most countries do not: Pix.

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Image: Ari Celia, director of institutional relations and co-founder of Pay4Fun

Pix: A Unique Lever for Market Integrity

Pix, Brazil’s government-backed, instant-payment system, offers a powerful mechanism for identifying and disabling illegal transactions at their source. Unlike other countries where payment ecosystems are dispersed and opaque, Pix operates under the strict oversight of the Central Bank of Brazil. All participating institutions must be licensed and regulated.

This presents a unique enforcement opportunity. Instead of pursuing anonymous operators scattered across borders, Brazilian authorities can focus on a smaller and more-visible target group: payment providers. By cutting off access to this financial gateway, the flow of funds to illegal websites can be interrupted, weakening their operations and shrinking their footprint.
This is why the payment sector is so pivotal to Brazil’s regulated future. And it is why the IBIA Payment Provider Forum was created.

Introducing the IBIA Payment Provider Forum

Brazil’s regulated betting environment holds great promise, not just for operators and consumers, but for the broader economy. Yet its success depends on the willingness of all stakeholders to uphold the rules and confront malpractice wherever it arises.

Payment providers are on the front lines of this effort. By aligning with integrity-focused initiatives such as the IBIA Payment Provider Forum, we can play a critical role in preventing illicit transactions, protecting consumers and ensuring that Brazil’s digital betting economy grows on solid foundations.

Convened by the International Betting Integrity Association (IBIA), the Forum unites Brazil’s leading payment institutions, all of whom are committed to lawful conduct, regulatory compliance, the protection of consumer interests and the integrity of sporting events.

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Image: Marcelo Bueno, chief legal officer (CLO) at Z.ro Bank

The Forum’s mission is clear: to promote collective action, share intelligence and raise standards across the entire payments chain. This is not just about avoiding legal risk: It’s also about shaping a healthy and sustainable betting market in Brazil.

As signatories of the Forum’s Declaration of Commitment, our goals are to:

• Collaborate in the development of standards and best practices for payment processing.

• Engage with regulatory bodies to defend a robust, fair and effective regulatory framework.

• Promote responsible gambling and consumer-market and sporting-event protection.

• Share knowledge and expertise to innovate and improve the payments ecosystem.

• Maintain the highest standards of ethical conduct and compliance with regulations

A Shared Responsibility

Brazil’s regulated betting environment holds great promise, not just for operators and consumers, but for the
broader economy. Yet its success depends on the willingness of all stakeholders to uphold the rules
and confront malpractice wherever it arises.

Payment providers are on the front lines of this effort. By aligning with integrity-focused initiatives such as the IBIA Payment Provider Forum, they play a critical role in preventing illicit transactions, protecting consumers and ensuring that Brazil’s digital betting economy grows on solid foundations.

Launched in Brazil at the end of February 2025, the Forum is now gaining momentum. It has already
held a second meeting in April and is planning two more before year’s end, each designed to deliver
concrete outcomes. As co-chairs, we invite more payment institutions to join us.

Together, we can help make Brazil a global reference point for safe, fair and regulated betting, powered by a
payment system that leaves no room for abuse. Keep a Close Eye on Brazil It is crucial that global stakeholders
pay close attention to this unique opportunity: a chance to work alongside Brazil. You will not only share the lessons learned from more-mature markets but also learn from our innovative approaches to combating financial crime – especially through the many new perspectives emerging from our experience with Pix.

***  This exclusive article was originally published in May 2025 edition of Sports Betting Operator Magazine Issue 016 ***