Neteller and Skrill withdraw from Brazil online market amid ongoing legal confusion

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Online gamblers in Brazil have been informed by payment processors Neteller and Skrill that the firms will no longer process transactions in the country.

 

The companies, both owned by Paysafe Group, emailed users on 10 January with the message that from 21 February they “will no longer process deposits by members in Brazil to gambling merchants.”

The reason for the withdrawal is unclear, however it follows a reduction in online gambling provision by Paysafe, which announced on 22 November it would cease accepting prepaid Mastercard transactions in the South American market, despite SEPA countries and North American jurisdictions retaining the privilege.

One reason for Paysafe’s reduced service may be the ongoing uncertainty around Brazil’s position on gambling, with voting on the country’s PLS 186/2014 gambling legislation by the Constitutionality and Justice Committee repeatedly delayed, and an equivalent vote in the Chamber of Deputies unlikely to progress until later this year.

The legal amendment contains proposals for an expansion of Brazil’s legal gambling operations, however continued delays mean operators have been denied a definite decision on how to proceed.

Despite the government remaining apathetic, public support for gambling in Brazil is much in evidence, with 86 percent of recipients to an online poll by Brazil’s Senate backing the legalisation of online gambling, adding they felt the move would benefit the country.

With established companies such as Paysafe reluctant to invest further in an indefinite market, the strong case for legalised online gambling in Brazil is in danger of stalling before it even gains momentum.


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