Brazil’s Consumer Protection Agency Seeks Ban on Betting Bonuses and Ads Targeting Minors
Brazil’s National Consumer Secretariat (Senacon), the government body responsible for enforcing consumer protection policies, has urged for an immediate ban on all marketing activities related to betting, including betting bonuses, and advertisements specifically targeting minors.
The Department of Consumer Protection and Defence of Senacon issued a preliminary order (No 2,344/2024) on November 19th, requesting the swift implementation of the ban on marketing betting bonuses.
This action is part of a broader regulatory crackdown in Brazil, occurring in the weeks leading up to the launch of the legal online betting market on January 1, 2025.
Last week, the Supreme Court held a two-day hearing to determine the constitutionality of Brazil’s betting law, which was released in December 2023. The court subsequently ruled that using social welfare Bolsa Familia cheques for betting would be prohibited.
The regulatory measures also follow a Central Bank study from July, which revealed that 20% of funds disbursed through the Bolsa Familia welfare program in August were spent on online gambling.
Further surveys have indicated that some players are using money allocated for essential needs like medicine, food, and clothing for gambling activities.
Licensed Operators Face Daily Fines for Non-Compliance
The order mandates the suspension of all advertising for betting bonuses across both online gaming and sports betting, even if the ads are solely intended to promote or publicize betting. Additionally, it prohibits any advertising of fixed-odds betting aimed at children and adolescents.
These restrictions will apply to operators included on the Secretariat of Prizes and Bets’ (SPA) list of companies authorized to continue operations during the transition period between October 1 and December 31.
Operators failing to comply with the new regulations will be subject to a daily fine of BRL50,000 (approximately £6,863/€8,210/$8,671) until full compliance is achieved.
Order No 2,344/2024 also requires a report analyzing the effectiveness of these measures, to be submitted within 10 days from November 19th.
These measures are intended to safeguard “the safety of vulnerable people in the consumer relationship, with special attention to hyper-vulnerable people such as children and adolescents”.
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