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Brazil Senate Committee Approves Stricter Betting Advertising Restrictions

by Sienna Marques
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Brazil Senate Committee Approves Stricter Betting Advertising Restrictions

On Wednesday, the Science and Technology Committee (CCT) approved significant restrictions on advertising and sponsorship within the betting industry. This legislative project aims to establish risk classification criteria for betting products while clarifying the responsibilities of operators and platforms. Critics argue the new regulations may inadvertently allow the illegal market to thrive, as it will not be bound by these rules. The committee's decision has prompted a request for urgent review by the Senate Plenary.

Senator Damares Alves, along with six others, introduced Bill 2.470/2026, which seeks to amend the Betting Law that governs fixed-odds betting. The bill has been framed as a measure to safeguard mental health, consumer rights, and family economics. Senator Alessandro Vieira provided a favorable report on this legislation, referencing its non-partisan nature and the societal concerns surrounding the impact of betting.

During a public hearing on Tuesday, representatives from both the government and the betting sector presented their differing viewpoints on the proposed legislation.

The approved bill contains a comprehensive set of advertising restrictions for online betting and gambling. Under these guidelines, all forms of advertising—including traditional media such as radio and television, print publications, streaming services, social media, and digital platforms—are explicitly prohibited. Furthermore, the regulations extend to targeted messaging practices, including instant messaging, email promotions, and content directed by algorithms.

The bill also bans advertising within electronic games and esports, as well as on sports apparel and in public transport. Other prohibited promotions include bonuses, free bets, and loyalty programs that aim to attract or retain users. It stipulates that misleading advertising cannot represent betting as a risk-free endeavor or an easy source of income.

While operators are allowed to communicate through their official channels for customer service, this communication is limited. They cannot make promises of winnings or promotions and remain liable for actions from any affiliates or influencers they support.

Sponsorships from betting companies will face strict prohibitions, affecting clubs, sports organizations, cultural events, and even individual athletes and influencers. The ban encompasses all promotional associations, including naming rights and ambassador roles. A transition period of 24 months is given for the termination or adaptation of existing sponsorship contracts, with new contracts only permitted under specific conditions.

Sponsorship of youth sports and associations with mental health initiatives or other vulnerable communities will also be banned. Operators must refrain from engaging individuals who have opted for self-exclusion or those whose gambling behaviors indicate risk.

The proposal includes a framework for classifying betting products based on their potential risk, looking at factors such as rewards and mechanisms that encourage frequent betting. Only products evaluated and approved by a designated federal body may be marketed, with high-risk products facing additional restrictions.

Furthermore, the bill provides for regulatory oversight, requiring operators to quickly address irregular advertisements. Notably, the proposals also include new criminal provisions targeting the promotion of unauthorized betting operators, establishing penalties from one to five years of imprisonment, particularly for digital influencers or celebrities who promote such services.

Another critical change involves increasing the time frame that professionals must wait before transitioning between regulatory roles and the betting sector, set at a 24-month cooling-off period.

These measures are part of a broader approach to promote responsible gambling and mitigate the risks associated with betting, while also preparing the industry for stricter regulations in response to the evolving landscapes of gambling and sponsorship.

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