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Brazil’s largest fintech bank has started an initiative to place barriers between customers and online gaming transactions.

Nubank, which is an internet-only bank, now questions customers before they use instant-payment platform Pix to make transfers to gaming operators.

They identify the transactions using Pix keys, which are similar to the sort codes used in the UK for banking transactions.

Users receive prompts when they attempt to make the transaction, with the first pop-up message reading “Is this transfer to a bookmaker? The Pix key entered is frequently used by bookmakers.”

If the user answers “Yes”, a second question prompts: “How about saving this money? Some of these games are legal in Brazil, but there are no guarantees of winning. By saving this money instead of betting, you can be sure that it will yield results without any worries.”

Trade groups are up in arms over the move.

The National Association of Games and Lotteries (ANJL) released a joint statement with Aigaming, the Brazilian Institute of Legal Gaming and Abrajogos complaining that it violated the principles of equality and economic freedom in Brazil.

They took particular issue with the fact that no such alert is issued for transactions with illegal operators, only those licensed in Brazil.

“It makes no sense that alerts are not activated for these illegal operators, making the situation even worse instead of helping to strengthen regulation in the country,” said ANJL president Plínio Lemos Jorge.

The organisations also point to Law 12,865, which states that “payment arrangements and payment institutions shall guarantee ‘non-discriminatory access to the services and infrastructure necessary for the operation of the payment arrangements’, a principle that Nubank ignored in its campaign, when it chose a single regulated business activity to demonstrate ‘concern’”.

A source who works with operators and banks told ���ĺ������� GamblingCompliance anonymously that “both sides are going to get used to the new market, to the regulated market”.

“Banks are afraid that their clients might be gambling more than they should, so this will have an impact on credit ratings and on how much they keep invested, and how much they keep inside the banks.

“But also they are trying to understand how to have a good relationship with betting operators. So there might be some noise now in the beginning but I believe that in a few months everybody will be used to this new reality and will get along.”

As of publication, Nubank had yet to respond to a request for comment.