On Wednesday, the Science and Technology Committee (CCT) of the Brazilian Senate advanced a bill aimed at imposing stricter regulations on advertising and sponsorships within the betting industry.
The legislation sets out criteria for the risk classification of betting products and clarifies the responsibilities of operators and platforms. Critics argue these measures could inadvertently enable the illegal betting market to thrive, as it would remain untouched by these new regulations. The committee granted a request for expedited consideration by the Senate Plenary.
Senator Damares Alves, alongside six co-sponsors, introduced Bill 2.470/2026, which seeks to amend the Betting Law that governs fixed-odds betting. The bill's focus is to safeguard mental health, consumer rights, and family finances. Its substitute version received a favorable opinion from Senator Alessandro Vieira.
Vieira emphasized, "This is a non-partisan initiative. It stems from society's current understanding of the extent of the damage caused by so-called betting."
A public hearing held the day prior to the committee meeting allowed both government and betting sector representatives to voice their opposing views on the proposal.
The approved proposal includes extensive restrictions on advertising for online betting and gambling. It prohibits any direct or indirect marketing communications regarding betting across a wide array of platforms, including radio, television, print media, streaming services, social media, and gaming platforms.
Additionally, it restricts targeted advertising methods such as instant messaging, SMS, email, and various algorithm-driven advertising techniques. The ban extends to advertisements in electronic games, esports, on sports uniforms, and through numerous online intermediaries.
Promotional tactics like bonuses, cashback, and loyalty programs to encourage betting engagement are also prohibited, as are misleading messages that suggest betting is a risk-free source of income.
Conversely, the regulations allow for strictly institutional communications through authorized operators' official channels, which can only provide basic operational information without enticing content. Operators must also oversee the conduct of affiliates and paid promoters to ensure compliance.
The bill forbids sponsorships by betting companies with numerous entities including sports clubs, events, and political campaigns, covering aspects such as brand exposure and influencer endorsements. It provides a 24-month period for these entities to adjust or terminate existing sponsorship contracts.
Restrictions extend to sponsorships involving minors, educational institutions, and any projects connected to mental health, financial education, or vulnerability protection.
In terms of consumer protection, the proposal delineates that operators cannot target individuals who have self-excluded or displayed risky gambling behavior. It also prohibits the aggressive marketing of betting services during vulnerable times, including situations involving emotional distress or financial hardship.
Operators will be required to implement permanent mechanisms for age verification, self-exclusion, and to provide data on user gambling behavior. Measures against using credit cards for betting are also imposed, alongside preventing tactics that may lead consumers to make impulsive betting decisions.
The bill lays out specific risk classification parameters for betting products, focusing on factors like immediate results, repetition of gameplay, and mechanisms that complicate ceasing betting activities. Products deemed high-risk would necessitate additional harm reduction protocols, while products posing excessive risk, like roulette or slots, would be banned.
Further provisions mandate data sharing with government authorities to monitor the effects of betting, train health professionals, and inform the public regarding gambling's impact.
The legislation includes a requirement for digital platforms and media entities to act against unauthorized advertisements once notified by relevant authorities, while preserving journalistic and academic content rights.
A significant shift in the bill introduces criminal penalties for promoting unauthorized betting operators, with sentences ranging from one to five years in prison, enhanced if the promotion is conducted by a public figure or influencer.
Lastly, the bill aims to prevent personnel from transitioning between betting companies and regulatory bodies to maintain integrity in oversight. Anyone closely associated with an operator will face a 24-month prohibition from taking on certain regulatory roles.
