Brazil sports betting ads subject to ministry of finance regulations
The 2024 edition of the Brazil Football Confederation’s (CBF) General Competition Regulations outlines rules for sports betting ads in five sections under article 114. The regulation includes 143 articles in total.
Law 14,790 is otherwise known as Bill 3,626, the piece of legislation that legalised igaming and sports betting in Brazil. This bill was signed into law in December last year and efforts to fully regulate the market have been ongoing since.
According to the CBF’s new regulations, any advertising from sports betting operators – including those displayed on participating World Cup team jerseys – must stay within the guidelines set by Law 14,790 and the ministry of finance.
What are the advertising rules?
Last week the ministry of finance provided the timeline for enacting the measures in Bill 3,626. The ministry also established the Regulatory Policy of the Prizes and Betting Secretariat (SPA) as regulator.
The timeline set out four stages for implementation. The process of monitoring gambling advertisements will be confirmed and implemented during stage three, which will conclude at the end of June.
Bill 3,626 forbids illegal operators from publishing gambling ads. It also prohibits any operators from displaying unsubstantiated claims about the probability of winning. Ads must not promote betting as a socially approved pastime or suggest that gambling can solve financial issues.
In addition, advertising must not include statements from celebrities or public figures approving gambling. In February, it was confirmed that a ban on celebrities appearing in sports betting ads was to be debated in Brazil’s senate.
New CBF rules promote integrity
Under the new General Competition Regulations, only licensed operators will be permitted to display sports betting at CBF competitions.
If sports betting operators wish to display ads during CBF-organised competitions, they must provide a declaration of non-involvement with any match-fixing behaviour. This declaration needs to cover the operator and its employees.
The CBF will have the power to prohibit ads from operators not aligned with its policies. This also applies if the operator is suspected of partaking in match-fixing behaviour.
If a club displays sports betting ads in contravention of these rules, the club will be subject to a fine.
Brazil on the brink of regulation
The first stage of the ministry’s regulation roll-out has already begun and will run until the end of April. This stage will see regulations published on the technical, payment and security requirements licensed operators must follow.
The second stage will run until the end of May. The SPA will publish its anti-money laundering and counter-terrorist financing rules at this time, alongside rules on the proliferation of weapons of mass destruction and fraud.
The fourth stage concerns the allocation of industry contributions to socially responsible causes. This stage will run until the end of July. If the proposed timeline is met, Brazil’s igaming and sports betting market will be fully regulated by this stage.
The journey to this point has been long and winding, with Bill 3,626 meeting several roadblocks along the way. Although it was voted through Brazil’s senate plenary and the chamber of deputies, igaming was temporarily removed from the bill and the final vote was delayed several times.
However, some reprieve came in the decision to lower the controversial 18% tax rate down to 12%.