Brazil proposes eight-year prison sentence for illegal gambling ads

Federal Deputy Kim Kataguiri has put forth a significant legislative proposal aimed at criminalizing the advertisement of illegal betting in Brazil, imposing severe penalties, including up to eight years in prison specifically for targeting vulnerable populations such as children.

Kataguiri’s proposed Law PL 706-2025 seeks to amend the Brazilian Penal Code, originally enacted in 1940, to establish the promotion of illegal gambling as a criminal offense.

The legislation stipulates that individuals found guilty of promoting illegal gambling could face imprisonment ranging from one to four years, along with substantial fines.

Moreover, the proposed penalties are subject to enhancement under specific conditions:

Should the promotion, publication, or dissemination of illegal gambling material be directed at children and adolescents;
If the advertising tactics target individuals in vulnerable situations, such as those facing financial hardships;
In cases where a digital influencer or public figure exploits their platform to promote illegal gambling;
When individuals participate in the profits or receive commissions from unlicensed gambling enterprises.

In his justification for the bill, Kataguiri remarked, “The regulation of gambling has been a recurring theme in Brazil, but the increase in illegal and unauthorized betting platforms poses serious risks to society. The establishment of a criminal offense for promoting illegal gambling is crucial to mitigate activities that harm consumers, promote money laundering, and exploit social vulnerabilities.”

The Controversial Landscape of Gambling Advertising in Brazil

Gambling advertising has sparked intense debate within Brazil’s evolving betting market, which officially entered a new regulatory framework as of January 1, 2024.

Toward the close of 2024, a series of legislative measures aimed at restricting gambling advertising were introduced. On December 6, the Secretariat of Prizes and Bets (SPA) activated a set of advertising regulations initially slated for implementation concurrent with the launch of the legal market.

These regulations include a prohibition on advertisements designed to appeal to children and adolescents, as well as any marketing efforts featuring imagery or themes that resonate particularly with minors.

The contentious nature of gambling advertising came to a head last year, particularly highlighted by the arrest of several influencers linked to the promotion of an Asian-themed slot game named Fortune Tiger, which resulted in substantial financial losses for their followers.

Illegal gambling remains a pervasive challenge for the licensed betting sector, with the National Telecommunications Agency (Anatel) acknowledging difficulties in blocking access to black market websites identified by the SPA.

Regis Dudena, head of the SPA, remains optimistic about the regulatory framework’s effectiveness, asserting in an interview with EXAME on January 3 that, “We believe that over time, operating illegally will become increasingly untenable, due both to the regulator’s enforcement actions and necessary market adjustments.”