On Thursday, Brazil's Minister of Finance, Dario Durigan, announced new advertising regulations for betting companies, which are set to be published on Friday. In a move first revealed in late June, these regulations aim to reshape how betting advertisements convey their messages.
Among the new provisions is a requirement that all betting ads feature warnings from the Ministry of Finance, akin to those seen on tobacco and alcohol marketing. These warnings will inform the public that:
– Betting makes you lose money.
– Betting can cause addiction.
– Betting is not an investment.
Additionally, a separate ordinance created in partnership with the Ministry of Justice will focus on combating illegal betting operators. Durigan stressed that media outlets are barred from promoting any company that lacks approval to operate within the market.
"We are imposing restrictions on betting advertisements in the country," Durigan 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 authorised in any way, and neither advertisers nor media outlets are permitted to run any advertising involving a company not authorised to operate in the market."
The new rules stipulate that betting companies cannot imply urgency, present betting as a viable investment, showcase winnings as incentives, or mislead consumers in any manner.
Moreover, these regulations will also restrict commentators and experts from making potentially misleading statements aimed at bettors.
"[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," Durigan emphasized.
Additionally, he noted that commentators and announcers will be prohibited from using their platform to advocate for betting.
"No displaying winnings as bait," he remarked. "No selling betting as a way to make easy money, or as an investment or financial solution for families."
Penalties for violating these new advertising regulations will be significant. Durigan indicated that non-compliance could result in fines of up to 20% of the betting operator's revenue and a suspension of activity for up to 180 days. In cases of serious repeat offenses, the authority to operate within the online betting market might even be revoked.
The National Consumer Secretary, Ricardo Morishita, mentioned that a maximum fine of approximately BRL14 million ($2.7 million) could be imposed on those engaging in unlawful advertising for betting.
The government has also stated that companies could face penalties if associated influencers violate the new advertising guidelines, potentially leading to the removal of offending content.
In a related update, Durigan revealed that the government has already taken down 56,000 betting sites and nearly 1,000 influencer profiles in an effort to curb illegal operations. Furthermore, the self-exclusion of almost a million bettors has been initiated to comply with statutory prohibitions.
"There is a ban preventing beneficiaries of government programmes from accessing these sites – a Supreme Court ruling," Durigan explained. "This also applies to people participating in Desenrola [a debt renegotiation programme launched by the Lula administration]."
The Minister noted that authorised betting companies have been cooperating with the government by reporting illegal operators.
Durigan outlined the timeline for betting authorisations in Brazil:
– 2018: Authorisation to operate, but without established rules.
– 2023: Congress establishes general rules.
– 2024: Ministry of Finance to establish the Secretariat of Prizes and Bets to oversee the sector.
– 2025: Government begins collecting licensing fees and enforcing rules.
