Episode #2 - Brazil's Bank Liability Bill and Why Payment Methods Matter

This article covers the Brazil and payments segment from episode 2 of Legacy Makers, the weekly iGaming brief from the Legacy Builders Podcast, where our founder Laurent Zachar joined the show again to discuss industry news. This piece covers a new Brazilian bill targeting banks over illegal betting payments, why it’s likely to push more volume toward crypto, and why payment method choice decides conversion for any new casino brand. The full episode is embedded below.

• Brazil’s bill to make banks cover illegal betting losses
• Why the crypto shift undercuts the bank crackdown
• Why payment method choice decides conversion
• FAQ

Brazil’s bill to make banks cover illegal betting losses

Following Brazil’s betting ban, which we covered in episode one of this brief, a new bill targets the banks still processing payments for unlicensed operators. Laurent explained the logic behind it:

When the country is banning iGaming or gambling, you still have a lot of people who make a lot of money from it, and they don’t want to stop. You still have a few banks that still process a little bit of payment. The best way to completely cut it is to give a fine to the banks, because if people cannot deposit money on the iGaming side, then they will never be able to play.

The bill would make banks liable for losses tied to illegal betting if their fraud checks fail to catch the activity, giving banks a direct financial reason to cut off payment processing for unlicensed operators rather than just a compliance obligation.

Why the crypto shift undercuts the bank crackdown

Laurent was direct about the limit of this strategy, since banks are not the only on-ramp left:

If you ban the banks, or make the banks carry the losses, then the bank will stop doing this type of deposit. However, today everyone knows crypto, everyone knows USDT, USDC, Bitcoin, Doge, Ethereum. And most of the casinos have those payment methods. They are removing some of the business from the bank, and increasing the crypto option.

Cutting off bank rails pushes volume toward crypto rather than eliminating it. Our Bitcoin vs. USDT for casino deposits guide covers why stablecoins specifically have become the default crypto deposit method in markets going through exactly this kind of banking crackdown.

Why payment method choice decides conversion

Pulling back from Brazil specifically, Laurent laid out why payment method selection is one of the highest-impact decisions when launching a brand in any market:

Payments matter a lot, especially in countries where the regulation is not as tough as in Brazil. Countries where gambling is regulated, you need to use the payment method that people are using. This increases the conversion much more. If you only offer crypto, then only people who know how to use crypto will play with your casino. However, if you use crypto, credit card, bank deposit, cash deposit, then more and more people are going to be playing, because some people don’t know how to use crypto.

He gave a concrete checklist for evaluating a platform on payments specifically:

You have to pay a lot of attention to which payment method they offer. Do they offer PIX? Do they offer SPay? Do they offer Mercado Pago, for example, in Argentina? Do they offer SMSPay in Africa? Do they offer crypto? When I created the website about the best white label online casino softwares, I was super impressed by Whitelabels.com because any brand started with them for $99 would have not only crypto, but also fiat credit cards, cash payments.

Our localization guide for iGaming games and payments breaks down which payment method dominates in each major market, which is the next step after deciding a platform supports local payments at all.

FAQ

What would Brazil’s bank liability bill change?

Banks would become financially liable for losses tied to illegal betting activity if their fraud checks fail to catch it, giving them a direct incentive to stop processing payments for unlicensed operators, on top of their existing compliance obligations.

Why is a bank crackdown pushing players toward crypto instead of stopping them?

Because crypto deposits, especially stablecoins like USDT and USDC, don’t rely on the banking rails a crackdown targets. Players and operators both shift volume there instead of the market shrinking.

Why does payment method choice affect conversion, not just compliance?

Because players who don’t already use crypto simply won’t convert on a crypto-only brand. Offering the payment method a market already uses, PIX in Brazil or Mercado Pago in Argentina for example, removes a barrier that has nothing to do with whether someone wants to play.

Which payment methods should operators prioritize in Latin America and Africa?

Based on this interview, PIX for Brazil, Mercado Pago for Argentina, and SMSPay-style mobile payment methods for African markets, alongside crypto and standard card and bank options for players who prefer those.

Where can I watch the full episode?

The complete episode is embedded above, and also available on YouTube directly. It’s the second episode of Legacy Makers, the weekly iGaming news segment on the Legacy Builders Podcast channel, the same show behind our founder’s original two-part interview.