Brazil Sports Commission questions restrictions on gambling ads

The Brazil Sports Commission (CEsp) has raised significant concerns regarding the regulatory landscape surrounding betting advertising. This discourse unfolded during a recent hearing focused on two proposed bills aimed at tightening marketing restrictions in the gambling sector.

On April 9, CEsp convened to deliberate on these two pivotal bills, PL 2,985/2023 and PL 3,405/2023, originating from apprehensions that the current regulatory framework established by the Secretariat of Prizes and Bets (SPA) fails to effectively safeguard consumers within Brazil’s burgeoning gaming market.

PL 2,985/2023, introduced by Senator Styvenson Valentim, seeks to impose a sweeping ban on gambling advertisements across all media platforms by amending Article 33 of Law No. 13,756/2018, which governs online betting in Brazil.

Conversely, PL 3,405/2023 proposes a more nuanced approach, prohibiting advertising that features athletes and celebrities while also restricting sports teams and influencers from promoting gambling brands.

During the CEsp meeting, Senator Carlos Portinho, the rapporteur for PL 2,985/2023, articulated a growing frustration with existing regulations, stating they yield “little results” in curbing what he termed “predatory advertising.”

“After waiting a year for comprehensive regulation and enforcement of gambling activities, I question the efficacy of the government’s restrictive advertising policies,” Portinho remarked. “The situation is worsening, as advertising proliferates, often targeting inappropriate audiences, including minors.”

Current Regulations Governing Gambling Advertisements in Brazil

In 2022, the SPA initiated regulatory measures governing gambling advertisements, encapsulated in Normative Ordinance No. 1,231 published in July. These regulations came into effect alongside the legalization of online betting on January 1, 2023, and mandate that all marketing initiatives adhere to principles of social responsibility and promote responsible gambling practices.

Key stipulations of these regulations include:

• Operators are prohibited from portraying betting as a “socially attractive” pursuit.
• Influencers and celebrities must refrain from implying that gambling leads to personal, financial, or social prosperity.
• Sponsorships are required to clearly identify the gambling operator and avoid appeals aimed at children.

Furthermore, on December 6, 2022, the SPA enacted several immediate restrictions on advertisements, originally slated for implementation with the legal market’s launch. These include prohibiting advertisements directed at minors and digital platforms primarily accessed by younger audiences.

All gambling advertisements must prominently display an “18+” symbol or convey a message that all games are “prohibited for individuals under 18.”

During the CEsp hearing, SPA representative Daniele Correa Cardoso highlighted the complexities of monitoring the online sector. “Upon receiving a complaint, we conduct an analysis, and if necessary, initiate an inspection process to eliminate non-compliant content,” she explained. “The rapid pace of the digital environment makes enforcement a challenging task.”

Evaluating the Sufficiency of Current Regulations

Public Defender Thiago Henrique Cunha Basílio expressed skepticism regarding the effectiveness of existing regulations in protecting vulnerable demographics. “Merely suggesting ‘play responsibly’ is inadequate; it shifts the burden of responsibility onto individual gamblers,” he asserted, emphasizing the differential vulnerability among various segments of the public.

Conversely, Alexandre Fonseca, CEO of SuperBet Brazil, acknowledged the need for heightened awareness regarding advertising risks but redirected focus to the burgeoning illegal market. “At present, there are approximately 20,000 illegal websites operating in Brazil, where gambling addicts and minors may easily access illicit gaming options,” he stated during the committee session. “Thus, reinforcing regulatory gaps in legal betting must be prioritized.”

Furthermore, Pietro Cardia Lorenzoni, legal director of the National Association of Games and Lotteries (ANJL), cautioned that further restrictions—such as those proposed in PL 2,985/2023 and PL 3,405/2023—could inadvertently push consumers towards illegal operators. Drawing parallels with Italy, where an outright advertising ban led to detrimental effects, he stated, “Many Brazilian consumers remain unaware of what constitutes legal versus illegal gambling. Advertising plays a crucial role in educating consumers about the legitimate market.”

“In Italy, the consequences of total advertising prohibitions resulted in a migration towards the illegal gambling market, undermining consumer protections, child safeguards, and essential public funding,” Cardia concluded.