On Wednesday, the Science and Technology Committee (CCT) of the Brazilian Senate approved a proposal aiming to tighten restrictions on advertising and sponsorship in the betting industry.
The initiative introduces criteria for risk classification of betting products and details the responsibilities of operators and platforms. Critics worry that while these regulations may curtail advertising, they won't touch the illegal betting market, which could continue its expansion unimpeded. The committee approved a motion to expedite the bill's discussion by the Senate Plenary.
Sponsored by Senator Damares Alves alongside six co-sponsors, Bill 2.470/2026 seeks to amend the Betting Law that oversees fixed-odds betting. The bill emphasizes the importance of mental health, consumer rights, and protecting family economics. Senator Alessandro Vieira, acting as rapporteur, expressed that the bill had received a favorable review through a substitute opinion.
“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 stated.
On Tuesday, the CCT hosted a public hearing on the bill where representatives from both the government and the betting sector shared their views, leading to a robust discussion.
The approved measures impose stringent advertising restrictions for online betting and gambling. Specifically:
– **Prohibited Advertising**: Marketing related to betting is banned across all media, including radio, television, newspapers, online platforms, and social media.
– **Restrictions on Messaging**: Direct messages like SMS, emails, and algorithm-generated advertisements are also prohibited, along with any telemarketing practices targeting users based on prior exposure.
– **Other Media Restrictions**: Advertisements in electronic games, esports, sports gear, public transport, and through affiliate channels are included in the ban.
– **Prohibited Promotions**: Incentives such as bonuses, loyalty programs, and free bets intended to recruit or retain customers are not allowed.
– **Misleading Communication**: Promoting betting as a risk-free way to earn money or recover losses is strictly off-limits.
The ban does not apply to institutional communication through official channels of licensed operators. These platforms can share information solely pertaining to company identification, self-exclusion options, and responsible gambling warnings, avoiding promises of winnings or bonuses.
The proposed regulations also impose a ban on sponsorships from betting firms, covering sports entities, events, cultural programs, and influencers. Any existing sponsorship contracts must be reviewed and terminated within 24 months. Organizations related to children or vulnerable populations will be particularly shielded from betting affiliations.
Operators are prohibited from utilizing data belonging to self-excluded individuals or targeting vulnerable users with intrusive marketing. This includes avoiding any exploitation of personal crises to draw in gamblers.
Mandatory measures for operators include maintaining age verification, responsible gambling protocols, and self-exclusion mechanisms. They cannot use credit for betting, nor should they leverage user behavior analytics to identify vulnerable periods for gambling.
The proposal also establishes a risk classification system for betting products, assessing harms based on their design and potential for dependency. Products deemed high-risk will face stringent restrictions, while excessively risky options might be banned altogether.
Before any product is marketed, it must first be evaluated by an appropriate Federal authority, which will monitor the effects of such activities through ongoing data reporting and professional training.
In terms of enforcement, digital platforms must remove any non-compliant advertisements following notification from authorities. Legal penalties for violations could include fines as steep as BRL2 billion (approximately $392.8 million).
One notable addition to the bill is the establishment of penalties for promoting unlicensed betting operators, with potential prison sentences ranging from one to five years, and increased penalties for promotions by high-profile individuals.
The bill also includes new regulations for former industry employees transitioning to regulatory roles. This aims to avoid conflicts of interest by instituting a 24-month waiting period for individuals who leave a betting operator to take on regulatory functions, or vice versa.
