On Thursday, Brazil's Minister of Finance, Dario Durigan, announced that new regulations concerning advertising practices for betting companies will be revealed on Friday. This follows a government directive from late June aimed at reforming how these companies promote their services.
Durigan explained that among the announcements will be a rule requiring all betting advertisements to feature warnings in line with those found on tobacco and alcohol products. These warnings will communicate critical messages such as:
– Betting makes you lose money.
– Betting can cause addiction.
– Betting is not an investment.
A separate ordinance, developed collaboratively with the Ministry of Justice, aims to combat illegal betting operations. Durigan highlighted that media outlets are strictly forbidden from promoting companies lacking authorization to operate in Brazil. "We are imposing restrictions on betting advertisements in the country," he stated. "It's needless to clarify that we have zero tolerance for illegal operators. Thus, no illegal betting businesses are permitted, nor are their advertisements allowed in any media."
The new rules also prohibit betting companies from creating a sense of urgency in their advertising or presenting betting as a viable investment or financial solution. Furthermore, showcasing winnings or prize histories as promotional tools will be banned, as well as any misleading representations aimed at consumers.
Durigan signaled that the rules will extend to commentators and analysts who provide misleading information to bettors. "It is not permissible to mix expert commentary with claims about the best betting choices or to guide consumers toward specific practices under the guise of technical expertise. This behavior must cease," he said. He reinforced that commentators and announcers cannot leverage their influence to advocate for betting.
"No displaying winnings as bait," he asserted. "Betting cannot be marketed as an easy way to make money, or as a financial solution for families."
Regarding penalties, non-compliance with the new advertising regulations could lead to fines of up to 20% of a betting operator’s revenue, as well as a potential 180-day suspension of operations. For serious repeated violations, the government may revoke the company’s ability to function in Brazil's online betting market. Ricardo Morishita, the National Consumer Secretary, further noted that penalties could extend to about BRL 14 million ($2.7 million) for anyone involved in illegal betting advertisements.
Additionally, operators may face penalties if influencers they contract breach these new advertising guidelines, and offending content could be removed.
Durigan revealed that the Brazilian government has already dismantled over 56,000 betting sites and nearly 1,000 influencer accounts. He noted nearly one million bettors have been self-excluded from these platforms under governmental measures.
"People benefiting from government assistance are banned from accessing these betting sites based on a Supreme Court ruling," Durigan explained, adding that this includes participants in Desenrola, a debt renegotiation initiative introduced by the current administration.
The Minister confirmed that licensed betting firms are cooperating with efforts to report illegal operators, contributing to the government’s enforcement strategies.
Durigan also provided an overview of Brazil's progress with betting authorizations:
– **2018**: Initial authorization to operate without established guidelines.
– **2023**: Congress legislates general rules.
– **2024**: Establishment of the Secretariat of Prizes and Bets under the Ministry of Finance to oversee the industry.
– **2025**: Introduction of licensing fees and enforcement of the outlined regulations.
