Brazil’s betting ads to come with new tobacco-style warnings
Brazil Minister of Finance Dario Durigan stated on Thursday that new rules regarding advertising for betting companies will be published on Friday. The government previously announced, in late June, that it would implement changes to how these betting companies advertise.
On Thursday, Durigan stated that one of the ordinances to be published on Friday will mandate that all betting advertisements include a warning from the Ministry of Finance, similar to the warnings found on cigarette and alcohol advertisements.
The advertisements will be accompanied by Ministry of Finance warnings, such as:
- Betting makes you lose money.
- Betting can cause addiction.
- Betting is not an investment.
According to g1, another ordinance – issued jointly with the Ministry of Justice – will introduce measures countering illegal betting operators. Dario Durigan emphasised that media outlets are prohibited from advertising companies not authorised to operate in the market.
Zero tolerance for illegal betting operators
“We are imposing restrictions on betting advertisements in the country,” Durigan said. “I don’t need to state – as it goes without saying – that we have zero tolerance for illegal operators. Therefore, illegal betting operations are not authorised in any way, and neither advertisers nor media outlets are permitted to run any advertising involving a company not authorised to operate in the market.”
Under these ordinances, Durigan noted, companies are prohibited from creating a sense of urgency, presenting betting as an investment or financial solution, showcasing winnings or prize histories as incentives, or misleading consumers.
Restrictions on commentators
The Minister of Finance stated that the new advertising rules will also prohibit commentators and experts from making statements that mislead potential bettors.
“[It is not permissible to mix] commentary from an expert or specialist – someone knowledgeable about a specific game or subject – with statements claiming that a particular bet is the best choice or that a specific path should be taken, thereby inducing the consumer to adopt a certain practice under the guise of technical backing. That must not be done,” said Durigan.
The minister also stated that commentators, experts and play-by-play announcers may not use their authority to encourage betting.
“No displaying winnings as bait,” he added. “No selling betting as a way to make easy money, or as an investment or financial solution for families.”
Penalties
According to Durigan, non-compliance with the rules will result in penalties, including fines of up to 20% of the betting operator’s revenue, as well as a 180-day suspension. In the event of a serious repeat offence, the authorisation to operate in the online betting market may be revoked.
National Consumer Secretary Ricardo Morishita stated that the maximum fine – approximately BRL14 million ($2.7 million) – could be imposed on anyone running illegal betting advertisements.
The government also announced that companies will be penalised if a contracted influencer runs an irregular advertisement that violates the new rules, and the content itself may be taken down.
Over 50,000 betting sites taken down
During an interview, Durigan reported that 56,000 betting sites have already been taken down by the government, along with nearly a thousand influencer profiles.
He stated that the government has already mandated the self-exclusion of nearly a million bettors for falling foul of statutory prohibitions.
“There is a ban preventing beneficiaries of government programmes from accessing these sites – a Supreme Court ruling,” Durigan explained. “This also applies to people participating in Desenrola [a debt renegotiation programme launched by the Lula administration].”
According to the minister, authorised betting companies themselves have been cooperating by reporting illegal betting operators.
The minister also presented a timeline regarding betting authorisations in Brazil:
- 2018: Authorisation to operate, but without established rules
- 2023: Congress establishes general rules
- 2024: Ministry of Finance establishes the Secretariat of Prizes and Bets to oversee the sector
- 2025: Government begins collecting licensing fees and enforcing rules