Brazil’s Finance Minister, Dario Durigan, announced on Thursday that new regulations governing advertising from betting companies will be released on Friday. This follows the government's prior announcement from late June regarding changes aimed at betting company advertisements.
Durigan emphasized that one ordinance set to be published will require all betting advertisements to feature warnings from the Ministry of Finance. These warnings will resemble those often seen on cigarette and alcohol promotions. Examples of the mandated warnings include:
– "Betting makes you lose money."
– "Betting can cause addiction."
– "Betting is not an investment."
Also, a separate ordinance developed in conjunction with the Ministry of Justice will implement measures against illegal betting operators. Durigan reiterated the government’s firm stance, stating that media outlets must not promote companies that lack authorization.
"We are imposing restrictions on betting advertisements in the country," Durigan asserted. "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 can promote any company not authorized to operate in the market."
The advertising rules will also restrict companies from implying urgency in betting, presenting it as a financial investment, highlighting past winnings, or providing any misleading information to consumers.
Additionally, commentators and experts will be prohibited from making misleading statements about betting. Durigan stressed that it is unacceptable to combine expert commentary with claims that a specific bet is the best option, thus persuading consumers to adopt certain betting practices under false pretenses.
He reiterated, "No displaying winnings as bait. No selling betting as a means to make easy money, or as an investment or financial solution for families."
Non-compliance with these regulations could result in severe penalties, including fines of up to 20% of a betting operator's revenue, in addition to a possible 180-day suspension. For serious repeat offenses, the operator’s authorization could be revoked. National Consumer Secretary Ricardo Morishita indicated that the maximum fine for running illegal ads could reach BRL14 million (around $2.7 million).
Companies could also face penalties if any contracted influencers violate the new advertising rules, which may lead to the removal of the offending content.
Durigan revealed that, to date, the government has dismantled 56,000 betting sites and nearly a thousand influencer profiles. He noted that about a million bettors have been mandated to self-exclude due to breaches of statutory prohibitions.
"There is a ban preventing beneficiaries of government programs from accessing these sites – a Supreme Court ruling," Durigan clarified, pointing out that this applies to individuals involved in the Desenrola debt renegotiation initiative introduced by the Lula administration.
He also acknowledged that authorized betting companies have been proactive in reporting illegal operators.
A timeline regarding the authorization of betting operations in Brazil was presented by the minister:
– 2018: Authorization to operate without established rules
– 2023: Congressional establishment of general rules
– 2024: Creation of the Secretariat of Prizes and Bets by the Ministry of Finance to oversee the sector
– 2025: Implementation of licensing fees and enforcement of regulations
These steps mark a significant effort by the Brazilian government to reshape the landscape of betting regulation as it aims to promote responsible gambling and crack down on illegal activities.
