In 2024, the Brazilian senate is expected to include a ban on celebrity endorsements in gambling advertising.
Brazil will finally be able to have a legalized sports betting market by 2024. The Brazilian chamber of Deputies approved Bill 3,626/2023 back in December. Advertising has seen its ups and downsides in Brazil.
The bill 3,405/2023 aims to ban the use of celebrities for sports betting advertisements. Senator Eduardo Girao has been opposed to gambling in Brazil since its inception. He presented amendments which would prohibit anyone who is considered influential from being involved in gambling marketing.
Girao believes that Bill 3,405/2023 will protect Brazilians from gambling-related harms both emotionally and financially.
Similar bans on advertising worldwide
Alcohol and Gaming Commission of Ontario, in August 2023 announced that athletes and celebrities would be banned from participating in advertising campaigns. This law will be implemented later in the month.
The French regulator of gambling, l’Autorite Nationale des Jeux(ANJ), has implemented a new ban which prohibits using athletes for gambling communication.
Some nations have even stricter laws. In Belgium, for example, gambling advertisements are banned almost completely, while in the Netherlands, non-targeted marketing is prohibited, and only targeted advertising can be used under certain circumstances.
Germany and Italy, two other European countries with strict advertising rules for sports betting, are also among the most restrictive. Both countries’ operators are calling for the restrictions on advertising to be relaxed in future.
Next steps for Brazil’s gambling journey
Brazil’s journey to legalized betting was not an easy one. There were many twists and turn along the way.
The market is expected to launch in 2024. Next, the Ministry of Finance will publish regulatory guidelines for operators.
Reports indicate that more than 130 companies are interested in obtaining a license.
Neil Montgomery, the founder and managing director of Brazilian law firm Montgomery & Associados explains to us what will happen.
Montgomery states that it’s more likely Brazil will have a market that is regulated in the second half of the year 2024, given the fact the Ministry of Finance must issue administrative rules (called Portarias in Portuguese), which further regulate the topics included in the Bill of Law. These norms are also subject to public consultations before becoming effective.
This should allow operators who haven’t yet set themselves up in Brazil enough time to establish their own structure (and, if necessary, select Brazilian partners) and do so.
They will have to submit their application for a federal license (with those who submitted their expressions to the Ministry of Finance under Portaria No. 1,330/2023 purportedly benefiting from an expedited review of their applications).
They will need to meet all the other requirements of the law and regulations (such as the BRL30m license fee, and the hiring of the staff needed for key positions outlined by the new laws).
