On Wednesday, the Science and Technology Committee (CCT) passed a bill that implements further restrictions on advertising and sponsorship in the betting industry.
The legislation introduces criteria for assessing the risk of various betting products and clarifies the responsibilities of operators and platforms. However, concerns persist that these new regulations could unintentionally enable the illegal market to grow, as it would not be bound by the same rules. The committee has also deemed this measure urgent for subsequent review by the Senate Plenary.
Spearheaded by Senator Damares Alves, alongside six other senators, Bill 2.470/2026 aims to amend the Betting Law governing fixed-odds betting. The proposed measures focus on safeguarding mental health, consumer interests, and the family economy. Senator Alessandro Vieira provided a supportive substitute report for the bill.
“This is a non-partisan initiative. It stems from society's current understanding of the extent of the damage caused by so-called betting,” stated Vieira, the rapporteur for the bill.
In a public hearing earlier this week, CCT officials heard from representatives of the government and the betting sector, who expressed varying opinions on the proposed regulations.
The approved legislation outlines several restrictions targeting online betting and gambling advertisements:
1. **Advertising Ban**: Direct or indirect advertising of betting is now outlawed across various platforms, including radio, television, newspapers, magazines, streaming services, podcasts, social media, and websites.
2. **Targeted Advertising Protections**: The restrictions extend to messaging via SMS, email, and algorithm-driven ads, as well as telemarketing efforts targeting individuals who have previously engaged with specific content.
3. **Prohibition on Promotions**: Companies cannot promote bonuses, free bets, cashback offers, or loyalty programs that might encourage gambling.
4. **Truth in Advertising**: Advertisements cannot misrepresent betting as a risk-free activity or as a reliable source of income.
Exceptions exist for strictly institutional communication via official operator channels, focusing solely on company identification and necessary warnings without promotional content.
The bill also imposes an outright ban on sponsorships by betting companies for various entities, including sports teams, leagues, cultural events, and political campaigns. This ban covers brand exposure through naming rights and promotional partnerships. Notably, there is a 24-month period for existing sponsorship agreements to be concluded or adjusted, with extensions only permitted under specific conditions.
In addition, no sponsorship activities involving minors, schools, or youth sports are allowed. Betting companies cannot link their brands to mental health campaigns or financial education initiatives.
The legislation includes strict provisions protecting individuals who have self-excluded or are undergoing treatment for gambling issues. Operators cannot reach out to these individuals with promotions, nor can they exploit vulnerabilities such as financial distress to entice them back into gambling.
Operators must employ constant age verification, self-exclusion options, and protocols to help users manage their gambling behavior. This includes banning credit card use for placing bets and preventing platform designs that might trick users into continuing to gamble against their own interests.
Criteria for risk classification of betting products are outlined in the bill, assessing harm potential based on factors like immediate results and reinforcement mechanisms that encourage impulsive betting. Products classified as high risk will face tighter regulations, while those assessed as excessively harmful, such as slot machines and roulette, may be prohibited entirely.
The CCT's bill emphasizes the importance of monitoring and institutional cooperation, requiring anonymous data submissions to authorities to track the impacts of betting more effectively.
Providers and platforms must quickly remove non-compliant advertising after notification and ensure that journalistic and artistic content remains protected from censorship. The bill also establishes penalties for acquiring or exploiting rights related to sporting events in the country, with fines reaching up to BRL2 billion ($392.8 million).
A key amendment introduced is the criminalization of promoting unauthorized betting operators, with potential prison sentences ranging from one to five years. This penalty becomes more severe for promotions made by notable figures, such as digital influencers or athletes, given their larger public influence.
Furthermore, to prevent conflicts of interest, the bill introduces a 24-month waiting period for individuals transitioning between roles in the betting industry and the regulatory bodies governing it.
