The National Association of Games and Lotteries (ANJL) has lashed out at the Rio de Janeiro Public Defender’s Office (DPRJ). The DPRJ has filed a lawsuit against 43 online betting operators over ads it believes are misleading.
On 20 July, the DPRJ announced it had filed a Public Civil Action (ACP) seeking damages of BRL300 million ($53.9 million) from operators, claiming their advertising had omitted essential information about the risks associated with betting.
The Consumer Defence Centre, a specialised department within the DPRJ dedicated to representing consumers, called for measures to be urgently implemented to protect bettors and ensure greater transparency from betting companies.
The ANJL has hit back, however, asserting the claims made in the ACP are unfounded. They warn the action could in fact harm bettors by making it harder to distinguish between licensed and illegal operators.
The ANJL highlighted the creation of a working group, established by the National Advertising Self-Regulation Council (Conar) in 2023, which aimed to clarify ethical standards for betting advertising in Brazil.
“All necessary measures for responsible and transparent gambling advertising are already adopted by regulated betting houses,” ANJL President Plínio Lemos Jorge said.
“Therefore, the Public Defender’s Office’s claim in the lawsuit makes no sense, as its arguments only apply to the illegal market. Therefore, the ANJL will act to provide the necessary clarifications in the proceedings.”
The DPRJ’s lawsuit
The defendants in the lawsuit include some of the largest licensed operators in Brazil, including Betano, Bet365 and Esportes da Sorte.
The BRL300 million figure represents 1% of the estimated BRL30 billion in monthly betting transactions in Brazil, according to Central Bank data. The money is set to go towards prevention and treatment of betting addictions.
One of the DPRJ’s requests is a ban on the exclusive use of the phrase “Play responsibly” in betting advertising, with the belief this is insufficient and too vague.
Instead, the DPRJ is calling for companies to be clearer in their warnings of the potential harms associated with gambling.
Public Defender General Paulo Vinícus Cozzolino Abrahão said: “Many people view gambling as a kind of investment, with the idea that there will be a return, which is a completely misguided notion, the result of a lack of financial education and misleading advertising.
“Gambling is a game of chance, not luck. We need to raise this awareness. It’s the same movement that occurred with cigarettes in the 1990s, and today there is a collective awareness that smoking is not beneficial to health. The issue needs to be addressed with the utmost speed and seriousness.”
The ANJL takes exception to claims operators aren’t advertising responsibly, dismissing the lawsuit’s argument that the “responsible gaming” warning is just a “decorative expression”, as well as that companies are trying to frame betting as a reliable source of income.
Betting ads a hot topic in Brazil
Betting advertising continues to be a hugely controversial issue in Brazil.
Such is the concern that, in May, the Senate approved a number of new restrictions on betting ads in Brazil.
These include a ban on betting ads during live broadcasts of sporting events, as well as the utilisation of celebrities such as athletes, artists and influencers.
Additionally, adverts on open and subscription television, social media, streaming and the internet would only be allowed between the hours of 7.30pm and midnight.
Meanwhile, radio ads would only be permitted in the morning between 9am and 11am and in the evening between 5pm and 7.30pm. Print media ads would be banned entirely.
It will now fall upon the Chamber of Deputies to review the bill, although the industry warns further ad restrictions would only serve to empower the black market.
Udo Seckelmann, head of gambling & crypto at local law firm Bichara e Motta Advogados, warned the push for fresh ad restrictions “lacks evidence-based support”.
“The motivations, although well-meaning, must be weighed against real-world outcomes – and the evidence suggests that informed, responsible regulation is more effective than prohibition,” Seckelmann told iGB.
Betting ads continue to prove a particularly contentious aspect of the regulated market in Brazil, with a number of high-profile operators facing legal action in Rio de Janeiro.