A new bill submitted to Brazil's Congress seeks to require unlicensed gambling operators to refund players for their net losses. The proposal, introduced on 15 October, also aims to make banks and payment providers jointly responsible for refunds if they fail to block transactions to unlicensed operators as required by law.
Details of the Proposed Legislation
According to the bill, the refund obligation would apply to the net loss suffered by players—the difference between the total amount deposited and any winnings paid out. If the operator cannot provide the refund, banks and payment services that processed the payments without blocking them, contrary to existing requirements, would be liable for the reimbursement.
Implications for Operators and Financial Institutions
If enacted, the bill would significantly increase the risks for both unlicensed operators and the financial services sector. Operators could face mandatory refunds even if their assets have already been seized by the state. For banks and payment providers, the proposal introduces potential financial liability if they do not comply with transaction-blocking obligations. The draft law allows these institutions to seek recourse from the operator for any refunded amounts.
Next Steps in the Legislative Process
The bill was submitted on 15 October but has not yet been assigned to specific congressional committees for review. Its progress and potential adoption remain to be seen as lawmakers consider its implications for the gambling and payments industries.
Key takeaways
- Brazilian lawmakers are considering mandatory refunds for losses to unlicensed gambling operators.
- Banks and payment providers could share responsibility for refunds if they fail to block illegal transactions.
- The bill covers net losses, not total deposits.
- Legislation is at an early stage and has not yet been assigned to committees.