Brazilian Betting Ads Face Legal Challenges and Regulatory Scrutiny
Betting advertisements remain a contentious issue in Brazil’s regulated market, with several prominent operators facing legal action in Rio de Janeiro.
The National Association of Games and Lotteries (ANJL) has strongly criticized the Public Defender’s Office of Rio de Janeiro (DPRJ), which has filed a lawsuit against 43 online betting operators for allegedly misleading advertisements.
On July 20, the DPRJ announced it had filed a Public Civil Action (ACP) seeking R$ 300 million (US$ 53.9 million) in damages from the operators, claiming their advertisements omit essential information about the risks associated with betting.
The Consumer Protection Center, a specialized department within the DPRJ, has called for urgent measures to protect bettors and ensure greater transparency from betting companies.
However, the ANJL has countered, stating that the claims made in the ACP are unfounded. The association warns that the measure could actually harm bettors by making it harder to distinguish between licensed and illegal operators.
The ANJL highlighted the creation of a working group by the National Council for Advertising Self-Regulation (Conar) in 2023, which aimed to clarify ethical standards for betting advertising in Brazil.
“All necessary measures for responsible and transparent gambling advertising are already adopted by regulated betting houses,” said ANJL President Plínio Lemos Jorge.
“Therefore, the Public Defender’s Office’s claim in the lawsuit makes no sense, as their arguments are only valid for the illegal market. Thus, the ANJL will act to provide the necessary clarifications in the process.”
The DPRJ Lawsuit
Among the defendants in the lawsuit are some of Brazil’s largest licensed operators, such as Betano, Bet365, and Esportes da Sorte.
The R$ 300 million represents 1% of the estimated monthly betting transactions in Brazil, which total R$ 30 billion, according to Central Bank data. The money will be used for the prevention and treatment of gambling addiction.
One of the DPRJ’s requests is the prohibition of the exclusive use of the phrase “Gamble responsibly” in betting advertisements, considering it insufficient and too vague.
Instead, the DPRJ asks that companies be clearer in their advertisements about the potential harms associated with gambling.
Public Defender-General Paulo Vinícus Cozzolino Abrahão said: “Many people see gambling as a kind of investment, with the idea that there will be a return, which is a completely mistaken notion, resulting from a lack of financial education and misleading advertising.”
“Betting is a game of chance, not luck. We need to raise awareness about this. It is the same movement that occurred with cigarettes in the 90s, and today there is a collective awareness that smoking is not beneficial to health. The issue needs to be addressed with the utmost speed and seriousness.”
The ANJL disagrees with the claims that operators are not advertising responsibly, rejecting the lawsuit’s argument that the “responsible gambling” warning is nothing more than a “decorative expression” and contesting the claim that companies are trying to present betting as a reliable source of income.
Betting Advertising: A Hot Topic in Brazil
Betting advertising continues to be an extremely controversial issue in Brazil.
Such is the concern that, in May, the Senate approved a series of new restrictions on betting advertising in Brazil.
These include a ban on betting ads during live broadcasts of sporting events, as well as a ban on the use of celebrities, such as athletes, artists, and influencers.
In addition, advertisements on open and subscription television, social media, streaming, and the internet would only be allowed from 7:30 p.m. to midnight.
However, radio advertisements would only be allowed in the morning between 9 a.m. and 11 a.m. and in the evening between 5 p.m. and 7:30 p.m. Print advertisements would be completely prohibited.
Now, the Chamber of Deputies will analyze the bill, although the sector warns that new advertising restrictions would only serve to strengthen the parallel market.
Udo Seckelmann, head of the Betting and Cryptoassets department at Bichara e Motta Advogados, warned that the pressure for new advertising restrictions “lacks evidence-based support.”
“The motivations, although well-intentioned, must be weighed against the results in the real world – and the evidence suggests that informed and responsible regulation is more effective than prohibition,” said Udo.
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