Dario Durigan, Brazil's Minister of Finance, announced on Thursday that new regulations governing advertising for betting companies will be released on Friday. This follows an earlier commitment made in June to revise how these firms can promote their services.
The upcoming regulations will require that all betting advertisements include health warnings similar to those found on tobacco and alcohol products, according to Durigan. The mandated warnings will include statements such as:
– Betting makes you lose money.
– Betting can cause addiction.
– Betting is not an investment.
In conjunction with the Ministry of Justice, another regulation will tackle illegal betting operators. Durigan stressed that media outlets must refrain from promoting companies that are not authorized to operate in Brazil, stating their strict stance against illegal betting.
"We are imposing restrictions on betting advertisements in the country," Durigan remarked. "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."
The new rules will also ban betting companies from creating a false sense of urgency, portraying betting as a financial investment, or showcasing winnings to entice consumers.
Additionally, commentators and experts will face restrictions on misleading statements about betting. Durigan elaborated that it is prohibited to combine expert commentary with claims that create pressure for consumers to make certain bets based on perceived authoritative advice.
"No displaying winnings as bait," he reiterated, emphasizing that betting should not be marketed as an easy money-making opportunity or a financial solution for families.
Penalties for non-compliance with these regulations could be severe. Durigan indicated that fines may reach up to 20% of an operator's revenue, alongside potential 180-day suspensions. In cases of serious repeated violations, companies could lose their right to operate within the online betting market.
Ricardo Morishita, National Consumer Secretary, stated that violating illegal betting advertising could incur fines of approximately BRL 14 million (around $2.7 million). Companies may also face penalties if influencers they hire promote ads that contravene the new guidelines.
Durigan reported an aggressive action against unauthorized betting activities, revealing that the government has taken down 56,000 betting websites and nearly a thousand influencer profiles. He mentioned that nearly a million bettors have been mandated to self-exclude due to breaches of statutory regulations.
"There is a ban preventing beneficiaries of government programmes from accessing these sites – a Supreme Court ruling," Durigan noted, pointing out that this applies to individuals enrolled in the Desenrola debt renegotiation programme established by the Lula administration.
The government has also received cooperation from authorized betting companies in reporting illegal operations. Durigan shared a timeline highlighting significant milestones in Brazil's betting landscape:
– 2018: Initial authorization to operate without established rules.
– 2023: Congress enacted general regulations.
– 2024: The Ministry of Finance will set up the Secretariat of Prizes and Bets to oversee the sector.
– 2025: The government will start collecting licensing fees and enforce the new regulations.
