Lawmakers in Brazil are ramping up their efforts to curb illegal advertising in the gambling sector by introducing tighter regulations. Nonetheless, some industry experts suggest that while the new rules mean well, they might end up doing more harm than good. Here’s a deeper dive into the newly proposed guidelines.
A new bill introduced by federal deputy Kim Kataguiri seeks to make advertising illegal betting a criminal offense in Brazil. The proposal includes strict penalties, especially for those targeting children and other vulnerable groups. Offenders face up to eight years in prison.
The PL 706-2025 bill seeks to update the Penal Code dating back to 1940. It aims to prevent the promotion of illegal gambling through advertisements. The primary focus is on those designed to influence at-risk audiences. This law could significantly change how betting is marketed in the country.
This legislation puts anyone caught promoting illegal gambling activities liable for prosecution. The punishment includes a jail sentence of one to four years and possible financial fines. The penalties could be even stricter in some instances. Punishment may double to eight years in prison if offenders are found guilty of:
Kataguiri explained the need for the bill by pointing out the risks of illegal gambling businesses. He emphasized how these operations can exploit consumers and serve as channels for financial crimes.
Gambling advertising has been a significant point of debate in Brazil, especially since new betting regulations took effect on January 1. Many concerns were raised about the impact of these ads on the public, and several bills were proposed to restrict gambling advertisements in the final months of 2024.
So, for the last couple of months, lawmakers have been pushing tighter rules to control how betting is promoted nationwide. The Secretariat of Prizes and Bets (SPA) then introduced new advertising rules on December 6, and these regulations were enforced immediately instead of waiting for the official launch of the regulated market. The measures included a ban on ads aimed at children and teenagers. Marketing that featured images of minors or elements designed to attract young audiences was also strictly prohibited.
Advertising became a heated topic last year after the controversy surrounding the Asian-themed slot game Fortune Tiger. Several influencers were arrested for promoting the game, and many of their followers lost significant amounts. Still, illegal gambling remains a major challenge for Brazil’s licensed betting sector. The National Telecommunications Agency admitted struggling to block black market sites flagged by the SPA, and that’s why enforcement efforts have been more difficult.
Regis Dudena, the SPA head at the Ministry of Finance, remains confident that regulations will weaken the influence of the black market. The SPA head believes that stricter rules would make illegal operations less sustainable over time. He explained that regulatory actions and market adjustments would gradually reduce the appeal of unlawful operations. Legal betting will be the more practical choice.
Besides illegal advertising, Brazil is also considering banning all fixed odds betting ads. The bill was courtesy of Senator Styvenson Valentim. It aims to change Article 33 of Law No. 13,756/2018, which regulates sports betting, and the proposal would ban gambling ads across all media. Senator Styvenson Valentim explained that the bill is necessary because more young people are betting. Around-the-clock access and no barriers mean they can place bets instantly, as this availability increases the risk of impulsive behavior.
Senator Carlos Portinho is now backing Valentim’s proposal. He had previously attempted to remove iGaming from Brazil’s betting laws without success, but come December, he changed his tune to express his support, stating that the bill ‘deserved to prosper.’
Portinho has also suggested several changes. The most notable one is the restriction on betting advertisements on the radio between 10 p.m. and 6 a.m. He has also proposed a complete ban on gambling-related marketing in printed and digital media across Brazil. Portinho additionally introduced changes to the bill to ban athletes and other public figures from appearing in gambling advertisements. On top of that, he proposed restrictions on promoting gambling through text messages or mobile notifications.
The good senator expressed concerns about the widespread advertising in the industry, saying that illegal advertising creates false hope. Here’s what he said:
“The rampant gambling advertising leads the audience to believe that they will achieve financial independence with a stroke of luck. However, reality has shown the even more pronounced impoverishment of the most economically vulnerable segments of the population.”
Operators should expect stricter enforcement measures if Brazil moves forward with criminalizing illegal gambling advertisements, and those promoting unlicensed betting platforms risk severe penalties. The anticipated rules will push operators to comply with local regulations and avoid any association with illegal gambling.
This proposal isn’t just about the legal consequences; it also seeks to improve the advertising landscape for gambling companies. Brazilian operators now have to be more cautious with their marketing strategies as their promotions must align with the country’s regulatory framework. There’ll be no room for unlicensed platforms to target Brazilian players.
The potential ban on fixed odds betting advertising is an even greater challenge for operators. This development will eliminate all forms of marketing for legal sportsbooks, and operators will struggle to attract new players using limited advertising channels. Instead, they must rely on alternative strategies to maintain their customer base.
This restriction could also affect consumer awareness and market competition. Newer operators will struggle to establish themselves, while established brands might retain dominance through existing customer loyalty. Most won’t be able to promote legal betting, and players could also turn to black market options. From how many industry experts see it, this situation defeats the purpose of the ban and can increase unregulated gambling.
The proposed changes mean operators must prioritize strict adherence to regulations. Savvy providers are already obtaining the necessary licenses and ensuring all advertisements meet local guidelines while also cutting any association with unlicensed platforms.
Additionally, leading iGaming providers are refining their marketing strategies to focus on responsible gambling messages and brand-building initiatives. They’re exploring alternative engagement methods to attract and retain players within the legal framework. This is the surest way to maintain visibility without violating restrictions that could potentially land them in jail for years.
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