On Wednesday, Brazil's Science and Technology Committee (CCT) endorsed a project aimed at tightening regulations on advertising and sponsorships related to betting. This proposal establishes criteria for risk classification of betting products and outlines the responsibilities of operators and platforms. However, it may inadvertently allow the illegal betting market to flourish, as it would not be subjected to these new regulations. The committee also prioritized this proposal for a swift review by the Senate Plenary.
Senator Damares Alves, along with six co-sponsors, introduced Bill 2.470/2026, which revises the existing Betting Law governing fixed-odds betting. The bill focuses on safeguarding mental health, consumer interests, and family finances, receiving a supportive substitute amendment from Senator Alessandro Vieira.
“This is a non-partisan initiative. It stems from society’s current understanding of the extent of the damage caused by so-called betting,” Vieira remarked during discussions.
The CCT also held a public hearing on Tuesday regarding the proposal, where government officials and representatives from the betting industry exchanged differing views on the measures.
### Advertising Restrictions
The approved bill outlines sweeping restrictions on advertising for online betting and gambling, including:
– A complete ban on advertising through various mediums such as radio, television, newspapers, magazines, social media, apps, blogs, and search engines.
– Limitations on targeted advertising via instant messaging, SMS, emails, and algorithmic promotions.
– Prohibition of advertisements within electronic games, esports, sports gear, and public transport, as well as content by affiliates and paid third-party intermediaries.
– Banning promotions, bonuses, and loyalty programs that aim to lure customers into betting.
– Preventing communication that describes betting as a risk-free or guaranteed profitable activity.
Institutional communications from authorized operators are exempt, provided they only include basic company information and essential warnings without any promotional content. Operators are responsible for the actions of their affiliates and third parties they incentivize.
### Sponsorship Regulations
The bill prohibits sponsorship by betting companies across various sectors. This includes:
– Banning sponsorships for sports entities, events, educational and social projects, and digital influencers.
– A 24-month period for existing sponsorship contracts to be adjusted or terminated, with new agreements allowed only if the current terms expire within this period.
– Prohibiting any ties to youth sports and campaigns focused on mental health or financial education.
### Consumer Protection Measures
Operators are prohibited from using data from self-excluded individuals or anyone seeking to block marketing communications. Furthermore, they cannot send repeated offers to users who have displayed signs of responsible gambling behaviors or significant financial loss. The bill bans exploiting vulnerable situations such as unemployment or emotional distress to attract customers.
Operators are required to have mechanisms for age verification, limits on time and betting amounts, and to maintain transparent user behavior statistics. They cannot accept credit card bets or employ predictive algorithms aimed at targeting vulnerable users. Regulatory bodies would oversee these operators to ensure compliance with the measures in place.
### Risk Classification
The proposal includes a framework for classifying betting products based on their potential harm. Factors for classification will consider aspects like instant results, random outcomes, and encouraging compulsive betting patterns. High-risk products will be subject to stricter harm reduction measures, while excessively risky products will be banned entirely.
### Oversight and Penalties
Providers and platforms must remove any irregular advertisements once notified by relevant authorities, safeguarding freedom of expression for journalistic and academic content. Betting companies will also not be allowed to acquire rights to sports events in Brazil. New infractions due to non-compliance will fall under Brazil's current sanctions framework, with penalties reaching up to BRL 2 billion (approximately $392.8 million).
### New Legal Offenses
The proposal introduces a new crime for anyone promoting unauthorized betting operations, punishable by one to five years in prison, with increased sentences for influencers or public figures. Additionally, individuals with strong ties to operators will face a 24-month restriction before assuming roles in regulatory bodies, and the same applies for transitioning from regulation back to the private sector.
