Brazil moves to close Pix credit loophole in betting payments

Brazil’s Federal Government is moving to close a regulatory loophole that still allows some consumers to fund betting accounts using Pix credit, despite restrictions on post-paid payment methods in the regulated gambling market.

Pix is Brazil’s instant payment system developed by the Central Bank, allowing users to transfer money in real time 24/7 through banks and digital wallets.

Pix credit, therefore, allows users to complete a Pix transfer using borrowed money, either through a credit card or a personal loan provided by the bank.

The issue emerged following the launch of the new Desenrola debt renegotiation program, which includes measures designed to reduce gambling-related indebtedness among Brazilian households.

Article 16 of the provisional measure establishing the updated program prohibits “credit operations directly linked to transfers for betting activities,” in what financial and gambling sector lawyers interpret as a reference to Pix credit transactions.

Under Brazilian betting regulations introduced in January 2025, licensed operators are already prohibited from accepting deposits made through “any post-paid payment methods,” including credit cards.

However, operators argue they cannot distinguish whether a Pix transfer originates from a standard bank balance or from a credit-linked transaction processed internally by banks.

“There’s no way for betting operators to identify and block Pix credit because the transfer arrives as a normal Pix payment,” Brazil’s Institute for Responsible Gaming (IBJR) said.

The dispute has exposed a regulatory gray area between Brazil’s Secretariat of Prizes and Betting (SPA), which oversees licensed operators, and the Central Bank, which supervises financial institutions.

According to the Ministry of Finance, enforcement over Pix credit mechanisms falls under the Central Bank’s remit. However, the Central Bank has yet to formally clarify how supervision and penalties will operate in practice.