On Thursday, Brazilian Finance Minister Dario Durigan announced upcoming regulations that will alter how betting companies advertise in the country. Following an earlier government announcement from late June, the new rules are set to be published on Friday.
Durigan revealed that one of the ordinances will require all betting advertisements to include compulsory warnings from the Ministry of Finance, similar to those on tobacco and alcohol ads. These warnings will inform the public that:
– Betting leads to monetary losses.
– Betting can foster addiction.
– Betting should not be viewed as an investment.
Additionally, another ordinance, which is a collaboration with the Ministry of Justice, aims to combat illegal betting operators. "We have zero tolerance for illegal operators," Durigan emphasized, noting that media outlets will be banned from advertising any unauthorized companies.
The newly established ordinances restrict companies from implying urgency in betting, presenting it as an investment, highlighting winnings, or misleading consumers in any way.
Moreover, Durigan pointed out that commentators and specialists must not mislead prospective bettors. He specified that it is prohibited to mix expert commentary with claims that certain bets are optimal choices, which could mislead the consumer into following specific practices under false pretenses.
"No showcasing winnings as bait, nor promoting betting as a shortcut to easy money or a financial solution for families," Durigan added.
Violations of these rules will incur penalties, including fines up to 20% of the betting operator's revenue and potential 180-day suspensions. For serious repeat offenses, the government may revoke the operator's authorization to conduct business in the online betting market. National Consumer Secretary Ricardo Morishita stated that individuals responsible for illegal betting advertisements could face fines up to BRL14 million ($2.7 million).
Companies could also face repercussions if any influencer they contracted violates these new advertising standards, with the possibility of removing the violative content.
Durigan noted that the government has shut down around 56,000 illegal betting sites and nearly a thousand influencer profiles in efforts to curb illegal betting activities. Around one million bettors are subject to self-exclusion measures mandated by the government for violating statutory prohibitions.
"A Supreme Court ruling currently prevents beneficiaries of government programs from accessing these betting sites," Durigan clarified, adding that this also includes individuals involved in Desenrola, a debt renegotiation program initiated by the Lula administration.
The minister confirmed that licensed betting operators are actively reporting illegal operators. He laid out a timeline detailing the progression of betting regulations in Brazil:
2018 saw authorization to operate without defined rules; 2023 ushered in general rules from Congress; 2024 will see the Ministry of Finance establishing the Secretariat of Prizes and Bets; and by 2025, the government will implement licensing fees and enforce the new regulations.
