On Thursday, Brazil's Minister of Finance Dario Durigan announced new regulations for advertising by betting companies, set to be released on Friday. This follows the government's commitment, made in late June, to revise how these companies promote their services.
Durigan revealed that among the new ordinances, all betting advertisements must now carry warnings from the Ministry of Finance, akin to those displayed on cigarette and alcohol marketing. The warnings will inform potential bettors that:
– Betting can lead to financial loss.
– Betting has the potential to cause addiction.
– Betting is not a legitimate investment.
In a separate piece of legislation created alongside the Ministry of Justice, Durigan outlined efforts to combat illegal betting operations. He stressed that media outlets are banned from promoting companies that lack authorization to operate within Brazil’s regulated market.
Durigan asserted, "We are imposing restrictions on betting advertisements in the country. It goes without saying that we have zero tolerance for illegal operators. Therefore, illegal betting operations are not permitted in any form, and neither advertisers nor media outlets may run ads featuring unlicensed companies."
The new provisions also prevent operators from instilling a false urgency around betting, misrepresenting it as a financial solution, or using winnings to entice customers. Advertisers are forbidden from misleading consumers with exaggerated claims.
Additionally, the rules place restrictions on commentators and analysts. Durigan specified, "[It is not permissible to mix] commentary from an expert or specialist with claims that a particular bet is the best option or that a certain strategy should be followed. This practice must not occur."
Commentators, experts, and broadcasters will be prohibited from encouraging betting through their authoritative status. He emphasized, "No displaying winnings as bait. No marketing betting as an easy source of income, or as an investment or financial resolution for families."
Failure to adhere to these new regulations could result in significant penalties, including fines that may reach up to 20% of an operator's revenue and a suspension of up to 180 days. For serious repeat violations, the government may revoke the offending company’s permission to operate in the online betting arena. National Consumer Secretary Ricardo Morishita stated that illegal betting advertisements could incur fines of approximately BRL14 million ($2.7 million).
The new rules also extend to influencers, who will be penalized if they promote unauthorized advertisements, with the potential for the violative content to be removed.
In just this year, the government has shut down 56,000 betting sites and nearly a thousand influencer accounts. The minister noted that close to a million bettors have been self-excluded for contravening legal prohibitions. Durigan added, "There is a ban preventing beneficiaries of government programs from accessing these sites, per a Supreme Court ruling. This also applies to participants in Desenrola, a debt renegotiation program launched by the Lula administration."
Durigan mentioned that authorized betting companies have been reporting illegal operations. He also provided a timeline for the evolution of betting regulations in Brazil:
– 2018: Initial permission to operate without specific rules.
– 2023: Establishment of general rules by Congress.
– 2024: Creation of the Secretariat of Prizes and Bets by the Ministry of Finance to oversee the sector.
– 2025: Introduction of licensing fees and enforcement of regulations.
