Brazil's Minister of Finance, Dario Durigan, announced on Thursday that new advertising regulations for betting companies will be published on Friday. This follows the government's earlier decision in late June to change how these companies market their services.
One key ordinance due for release mandates that all betting advertisements must include strong warnings from the Ministry of Finance, resembling the warnings typically found on tobacco and alcohol products.
The warnings will state:
– Betting makes you lose money.
– Betting can cause addiction.
– Betting is not an investment.
In addition, according to g1, a joint ordinance with the Ministry of Justice will tackle illegal betting operators. Durigan stressed a strict prohibition on the advertising of unauthorized companies.
"We are imposing restrictions on betting advertisements in the country," Durigan stated. "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 also prevent companies from creating a sense of urgency around betting, presenting it as an investment or financial solution, showcasing winnings as incentives, or misleading consumers in any way.
Additionally, the advertising guidelines restrict commentators and experts from making misleading statements to potential bettors.
Durigan remarked, "[It is not permissible to mix] commentary from an expert or specialist — someone knowledgeable about a specific game or subject — with claims that a particular bet is the best choice or suggesting a specific path to induce consumer action based on technical backing." He further noted that commentators and play-by-play announcers must not exploit their influence to promote betting.
"No displaying winnings as bait, no selling betting as a way to make easy money, or as an investment or financial solution for families," he emphasized.
Regarding penalties, Durigan explained that non-compliance with these rules may result in fines up to 20% of a betting operator's revenue, alongside a potential 180-day suspension. Serious repeat offenses could lead to the revocation of the company’s authorization to operate in the online betting market.
National Consumer Secretary Ricardo Morishita indicated that the maximum fine for illegal betting advertisements could reach approximately BRL14 million ($2.7 million). Companies would also face penalties if a contracted influencer violates the new rules in their advertisements, and such content could be removed.
Durigan revealed that over 56,000 betting websites have been shut down along with nearly a thousand influencer profiles for engaging in illegal operations. The government has also mandated the self-exclusion of nearly one million bettors for violating statutory prohibitions.
"There is a ban preventing beneficiaries of government programs from accessing these sites — a ruling by the Supreme Court," Durigan clarified, noting that this restriction also applies to participants in Desenrola, a debt renegotiation initiative from the Lula administration.
He added that authorized betting companies have been proactive, reporting illegal operators.
A timeline provided by the minister outlined the regulatory developments concerning betting in Brazil:
– 2018: Authorization to operate without established rules.
– 2023: Congress established general rules.
– 2024: Creation of the Secretariat of Prizes and Bets by the Ministry of Finance.
– 2025: Government to commence collecting licensing fees and enforcing regulations.
