On Thursday, Brazil's Finance Minister Dario Durigan announced that new regulations for betting advertisements will be released on Friday. This follows the government's announcement in June regarding planned changes to advertising methods for betting companies.
Durigan revealed that an ordinance set to be published will require all betting ads to carry disclaimers from the Ministry of Finance, similar to those mandated for tobacco and alcohol promotions. The warnings will include messages like:
– "Betting makes you lose money."
– "Betting can cause addiction."
– "Betting is not an investment."
Additionally, a separate ordinance in collaboration with the Ministry of Justice will aim to combat illegal betting operators. Durigan stressed that media outlets must not advertise companies that are not authorized to operate legally in Brazil.
"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 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 the new regulations, companies will be barred from creating a false sense of urgency, misrepresenting betting as a financial investment or solution, promoting winnings or prize histories as temptations, or misleading consumers in any manner.
The advertising rules will also restrict commentators and experts from giving misleading endorsements to potential bettors.
Durigan explained, "[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."
Furthermore, he indicated that commentators, experts, and play-by-play announcers are not allowed to use their credibility to promote betting activities.
"No displaying winnings as bait," he emphasized. "No selling betting as a way to make easy money, or as an investment or financial solution for families."
Durigan stated that breaches of these advertising rules will incur severe penalties, including fines reaching up to 20% of the betting operator's revenue and potential suspensions of up to 180 days. In cases of significant repeated violations, authorization to operate in the online betting market could be revoked.
National Consumer Secretary Ricardo Morishita added that the maximum fine could amount to approximately BRL14 million ($2.7 million) for those running illegal betting advertisements.
The government will also hold companies accountable if contracted influencers produce advertisements that contravene the new regulations, and such content may be required to be removed.
In a related update, Durigan shared that over 56,000 betting websites have been shut down, along with almost a thousand influencer accounts involved in illegal promotions. He noted that nearly a million bettors have self-excluded due to violations of statutory rules.
"There is a ban preventing beneficiaries of government programs from accessing these sites – a Supreme Court ruling," Durigan remarked, highlighting that this rule applies to participants in Desenrola, the debt renegotiation initiative introduced by the Lula administration.
Durigan concluded by stating that licensed betting companies have been cooperating with authorities by reporting illegal operators. He also presented a timeline outlining the evolution of betting regulations in Brazil:
– 2018: Authorization to operate with no established rules
– 2023: Congress sets general rules
– 2024: Ministry of Finance forms the Secretariat of Prizes and Bets to supervise the sector
– 2025: Government begins collecting licensing fees and enforcing the new regulations.
