Brazil Looks to Block Online Casino Payments a la UIGEA

The legislature of Brazil is contemplating a law similar to the UIGEA to prevent online casino payments from being processed.

A bill advancing in the Brazilian legislature would establish laws against processing payment transactions for online casinos, much in the same way the UIGEA attempts to do in the US. Despite the problematic nature of the US law, Brazilian Senator Magno Malta has pushed his bill for over a year, finally having it advance to the Communications and Technology Committee.

The bill, which proposes criminal penalties for payment systems such as credit card companies for handling lottery, sports betting, and online casino games, has been expanded to cover third-party payment firms and even Internet service providers.

Gambling is illegal throughout Brazil, but online gaming operators ignore the prohibition, causing lawmakers to vow to strike against those providing access for offshore Internet gambling operators.

Problems that have afflicted the US in its adoption of the UIGEA may not come into play in Brazil. Since gaming laws differ from one county to the next in the US, and federal law does not address illegal gambling with the exception of sports betting, defining what activities the UIGEA blocks payments for has become a constant issue.

Also, US authorities have allowed horse racing and lottery play to continue unimpeded, causing foreign gambling companies to complain of discriminatory trade practices.

But Brazil may not find these issues as cumbersome, if nationally all gambling is forbidden.