Brazil Proposes Online Gambling Payment Prohibition

Published: Friday, August 21, 2009 Online-Casinos.com

Draft legislation for online gambling which has the intent of imposing a ban on online gambling payments in Brazil is to be put forth for examination in the country's Senate.

The Senate's Communications and Technology Committee will finally get a chance to see the proposed law, first introduced by Senator Magno Malta more than a year ago. The Brazilian bill, thought to be the equivalent to the current prohibition law in the USA has some new amendments extending the payments ban to lottery games. The filing of companion legislation by former Senate President Garibaldi Alves Filho, has given the proposed legislation more emphasis.

Brazil's code of law establishes a general prohibition over all gambling activities,but according to legal experts, it is not clear how that prohibition would apply to offshore online gaming operators.

In the original proposal, Brazilian credit and debit card companies would not be allowed to process credit or debit card payments from unauthorised games of chance, sports betting or lottery games. Senator Alves Filho's companion bill would be expanded to cover Brazilian ISPs and financial intermediaries, as well as the imposition of criminal sanctions of up to three years in prison for offenders.

The senator noted that the draft legislation, " The UIGEA in the USA adopted a strategy that is worthwhile bringing across to our jurisdiction, as it is not possible to punish those responsible for electronic sites based in other countries... we punish those that allow these sites to be accessed from our national territory.adding, "It is for this reason that the North American law and this current project are principally directed towards internet service providers, credit card companies and towards banks."

Leading international operators such as PokerStars, 888, and Sportingbet have already established Brazilian websites aimed at customers in vast Brazil. Sportingbet has also advertised on television channels including ESPN Brazil and on billboards during football games shown to millions of people.