A new wave of gambling ad restrictions is on the horizon for Brazil, following the Senate’s approval of Bill 2,985/2023 in May. This will likely add to the host of challenges faced by operators, since Brazil’s regulated online betting market launched on 1 January.
Though the bill’s rapporteur, Senator Carlos Portinho, eliminated a blanket ban on gambling ads from the proposal, the approved bill does include a ban on betting ads during live sporting broadcasts. The use of celebrities, influencers, and athletes in any marketing material will also be prohibited, with the latter only applying to current players, or those whose career ended less than five years ago.
With both the Sports Commission and Senate having now approved the amended bill, it is headed to the Chamber of Deputies for review.
The new law will likely not take effect until 2026, says Udo Seckelmann, Head of Gambling & Crypto at local law firm Bichara e Motta Advogados. Seckelmann says he is relieved the “disproportionate” blanket ban has been eliminated, though he warns the push for further 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 explains.
**Current Brazil gambling ad regulations are sufficient**
The Secretariat of Prizes and Bets (SPA) published Normative Ordinance No 1,231 in July last year, laying out how licensed operators could advertise their products. The regulations included restrictions on operators presenting betting as “socially attractive” or using ads to target children or adolescents.
Additionally, all advertising from licensed operators was mandated to display an ’18+’ symbol and be guided by social responsibility and the promotion of responsible gambling.
Lawyer Luiz Felipe Maia, founding partner of Maia Yoshiyasu Advogados, believes current restrictions on advertising are adequate, especially with Brazil having only just regulated its iGaming sector.
“I think the current regulation is sufficient in protecting people, and they are coherent with this stage of the market, because Brazil has just become regulated,” Felipe Maia tells iGB. “When you have a new regulated market, it’s important to allow the regulated operators to advertise and to become known to the public, so that you can drive the public to those regulated operators. I think it’s important that we don’t have that many restrictions, such as in other regulated but more mature markets.”
Fellipe Fraga, Chief Business Officer at licensed operator EstrelaBet, agrees the current regulations are sufficient. “I believe it’s enough,” Fraga says. “Most important is to have conscience. The politicians and other regulators understand that the market is okay [as it is], and all the world is doing [online betting], so we can also advertise.”
On the other hand, Betsul CEO Fernando Garita is keen for the advertising regulations to be more clearly defined. Garita is calling for clarity and consistency from the SPA: “A better balance is needed—one that enables responsible messaging without stifling legitimate commercial activity.”
**Enforcement is the priority**
While the licensed sector is generally content with current ad restrictions, many stakeholders are urging stricter enforcement to be applied, especially when it comes to influencer advertising, which last year became a sector, and national media topic du jour.
The game “Fortune Tiger” faced huge controversy last year. Influencers investigated, and in some cases arrested, after marketing the game to their followers and promoting attractive financial rewards. Many players ended up losing large sums of money playing the game on fraudulent sites.
Since the scandal, the SPA has taken steps to further restrict influencer advertising. Internet personality Virgínia Fonseca appeared in front of the parliamentary inquiry commission for betting in May to be questioned over advertising gambling to her huge online following.
Felipe Maia believes the SPA should crack down on those infringing upon current regulations. “I think if we start to have these cases where digital influencers will be held liable, have to pay fines, and maybe be arrested, for working with illegal operators or not complying with advertising rules, we will start to see different behaviours,” he insists.
**Overregulation risks empowering the black market**
The Brazilian gambling sector is by no means the only market experiencing pressure over its gambling advertising. Looking elsewhere at more mature markets, it’s understandable there are fears over the consequences of further restrictions.
Germany, where nearly half of all players bet with the black market, has a ban on TV and online advertising between 9pm and 6am, as well as restrictions on showing sports clips in ads and partnering with sports personalities.
Italy, which has a blanket ban on gambling advertising, is experiencing serious black-market issues, while Brazil’s neighbor Argentina has also taken steps to introduce a ban on online betting advertising.
With licensed operators in Brazil already concerned