Brazil: Draft bill in the Chamber of Deputies seeks to ban internet transactions for gambling

Brazil's Chamber of Deputies is considering a bill proposed by congressman of the evangelical party Pastor Gil, which seeks to prohibit financial institutions from processing Internet transactions involving unauthorized gambling and lotteries.

According to the proposal, the Central Bank of Brazil would have to establish rules to determine the cancellation of such transactions and prohibit the transfer of funds between buyers and suppliers.

Specifically, Bill 1,823/22 prohibits financial entities that issue credit or debit cards, as well as any other payment entity, from authorizing Internet transactions for the purpose of participating in unauthorized games of chance and lotteries, as well as from accessing websites that show, sell, provide or disseminate images of pornography or explicit sex scenes with children or teenagers.

According to the proposal, which is being analyzed by the Chamber of Deputies, the Central Bank of Brazil, in compliance with the guidelines established by the National Monetary Council, will establish rules to determine the immediate cancellation of transactions of this type, and prohibit the transfer of funds between buyers and suppliers.

Presented by Congressman Pastor Gil, the text focuses on Law 12,865/13, with the aim of limiting Internet users' access to illicit games and child pornography. "We understand that it is essential to annul any transaction in which illicit conduct is verified, thus preventing the transfer of funds between the purchaser and the service provider," he said.

"If the seller realizes that there is a risk of not receiving, he will be dissuaded from accepting credit or debit cards or electronic money as a means of payment," Pastor Gil added.

According to the parliamentarian, the aim is to encourage adult content websites not to offer products that contain the participation of minors under 18 years of age. "After all, with the proposed regulation, this site would no longer be accredited by payment card companies, which would mean a significant loss of their clientele," he added.

The proposal will be examined by the committee of Finance and Taxation; as well as the committee of Constitution, Justice, and Citizenship.