On Thursday, Minister of Finance Dario Durigan announced that new regulations for advertising by betting companies will be published on Friday. This follows the government's earlier announcement in late June, which revealed plans to revise the advertising practices of these companies.
Durigan highlighted that one key aspect of the upcoming regulations will be a requirement for all betting advertisements to feature warnings from the Ministry of Finance, akin to those seen on cigarette and alcohol promotions.
The mandated warnings will include phrases such as:
– "Betting makes you lose money."
– "Betting can cause addiction."
– "Betting is not an investment."
Additionally, g1 reported that another ordinance, created in collaboration with the Ministry of Justice, will aim to tackle the issue of illegal betting operators. Durigan reiterated the government's stance, asserting that media outlets must refrain from advertising companies that lack the necessary authorisation to operate legally in the market.
"We are imposing restrictions on betting advertisements in the country," Durigan declared. "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 advertisements for companies not authorised to operate in the market."
The new rules will prevent companies from creating a sense of urgency, misrepresenting betting as an investment opportunity, showcasing winnings as incentives, or deceiving consumers.
Durigan further noted that the regulations will restrict commentators and analysts from making false claims to potential bettors.
"It is not permissible to mix commentary from an expert with statements claiming that a particular bet is the best choice, thereby misleading consumers into adopting certain practices under false pretenses," explained Durigan. "No displaying winnings as bait. No promoting betting as a way to make easy money, or as a financial solution for families."
Failure to comply with these new regulations could lead to severe penalties, including fines of up to 20% of the offending betting operator's revenue and a suspension of up to 180 days. In instances of serious repeated violations, operators risk losing their authorization to operate in the online betting market.
National Consumer Secretary Ricardo Morishita added that the maximum fine, estimated at around BRL14 million (approximately $2.7 million), could be levied against any entity involved in illegal betting advertising.
The government will hold companies responsible if their contracted influencers post advertisements that violate the new guidelines, and such content may be removed.
In an interview, Durigan disclosed that the government has already dismantled 56,000 unauthorized betting websites and nearly 1,000 influencer accounts linked to illicit betting practices. He revealed that close to one million bettors have been subjected to self-exclusion due to violations of statutory prohibitions.
"There is a ban preventing beneficiaries of government programmes from accessing these sites – a Supreme Court ruling," Durigan clarified. "This restriction also applies to participants in the Desenrola debt renegotiation programme initiated by the Lula administration."
Durigan noted that legally operating betting companies have been proactive in reporting illegal operators. He also provided a timeline for the evolution of betting authorisations in Brazil:
– 2018: Initial authorisation to operate without established regulations
– 2023: Congress enacts general rules for betting
– 2024: Ministry of Finance forms the Secretariat of Prizes and Bets for oversight of the sector
– 2025: Government begins collecting licensing fees and implementing regulations
