Dario Durigan, Brazil's Minister of Finance, announced on Thursday that new regulations governing the advertising of betting companies will be unveiled on Friday. The Brazilian government had previously indicated in late June that it would introduce amendments to the way betting advertisements are handled.
Among the forthcoming regulations, Durigan revealed that one ordinance will require all advertisements from betting firms to carry warnings similar to those found on cigarette and alcohol commercials, as mandated by the Ministry of Finance. These warnings will inform potential bettors of the risks associated with gambling, including:
– Betting makes you lose money.
– Betting can cause addiction.
– Betting is not an investment.
Additionally, g1 reported another ordinance, created in partnership with the Ministry of Justice, aimed at combating illegal betting operations. Durigan stressed that advertisements for unlicensed betting companies are strictly forbidden in any media outlet.
"We are imposing restrictions on betting advertisements in the country," he stated. "I don’t need to state – as it goes without saying – that we have zero tolerance for illegal operators. Therefore, illegal betting operations are not authorized in any way, and neither advertisers nor media outlets are permitted to run any advertising involving a company not authorized to operate in the market."
Under these new ordinances, companies will be prevented from creating a sense of urgency, framing betting as an investment opportunity, showcasing winnings as incentives, or misleading consumers in any manner.
Durigan also highlighted that the updated advertising rules will stop commentators and experts from misleading potential bettors with their endorsements.
"[It is not permissible to mix] commentary from an expert or specialist – someone knowledgeable about a specific game or subject – with statements claiming that a particular bet is the best choice or that a specific path should be taken, thereby inducing the consumer to adopt a certain practice under the guise of technical backing. That must not be done," he remarked.
Moreover, experts and commentators must not use their perceived authority to promote betting. "No displaying winnings as bait," Durigan remarked. "No selling betting as a way to make easy money, or as an investment or financial solution for families."
Durigan outlined the penalties for non-compliance with these regulations, which could include fines reaching up to 20% of the betting operator's revenue, along with a suspension of up to 180 days. In case of severe repeated violations, the authority to operate in Brazil's online betting market may be rescinded.
National Consumer Secretary Ricardo Morishita mentioned that the maximum fine for running illegal betting advertisements could reach approximately BRL14 million (around $2.7 million).
Companies will also incur penalties if an influencer they contracted engages in advertising that violates the new guidelines. Such content may be removed.
In a broader crackdown, Durigan stated that the government has taken down 56,000 illegal betting sites and nearly 1,000 influencer profiles. He noted that nearly one million bettors have opted for self-exclusion after violating legal restrictions.
"There is a ban preventing beneficiaries of government programmes from accessing these sites – a Supreme Court ruling," he explained, indicating this rule also affects those involved in Desenrola, a debt negotiation programme initiated by the Lula administration.
Durigan further conveyed that licensed betting companies are cooperating with authorities by reporting illegal operators. He also provided a timeline of the betting authorization process in Brazil:
– 2018: Operators were authorized without clear regulations.
– 2023: Congress set general guidelines.
– 2024: The Ministry of Finance will establish the Secretariat of Prizes and Bets to oversee the sector.
– 2025: The government will start collecting licensing fees and enforcing regulations.
