Brazil Senate Approves Restrictions on Betting Advertisements, Industry Voices Concerns
The Brazilian Senate has approved new restrictions on betting advertisements, prompting concerns from the industry about the potential for these measures to benefit the black market.
The approved restrictions include prohibitions on celebrity endorsements, limitations on sports sponsorships, and the imposition of advertising time slots.
The Senate’s decision follows the Sports Committee’s approval of a proposal to add further restrictions to betting advertisements in Brazil. The bill, initially slated for a final vote by the Committee on Communication and Digital Law (CCDD), was fast-tracked to the Senate floor due to the CCDD’s inactivity.
Senator Carlos Portinho amended the bill, removing an initial ban on betting advertising. The revised version allows limited sponsorship of sports teams and stadiums, as well as advertising during specific time slots.
Udo Seckelmann, a legal expert, stated that the amendments are crucial in mitigating the betting sector’s reaction in Brazil.
“A complete ban on gambling advertising would have been disproportionate and disconnected from the established regulatory framework,” Seckelmann said.
“A widespread prohibition would have hindered the development of the legal market, pushing bettors to unregulated platforms and significantly harming stakeholders such as sports entities, media outlets, and marketing agencies.”
Concerns Over Potential Setbacks
The Brazilian Institute of Responsible Gaming (IBJR) expressed deep concern over the bill, warning that its “severe restrictions” would open the door for the illegal market.
The IBJR argued that legal advertisements inform the public and help citizens identify regulated platforms that provide a safer gambling environment compared to black market alternatives.
“The proposal weakens communication between legalized betting companies and bettors, compromising the sustainability of a regulated sector committed to responsible gaming,” the IBJR stated.
Football clubs have also voiced their opposition to the advertising restrictions.
In a joint statement, several major clubs expressed concerns about the economic impact of the restrictions, calling the bill a “ban disguised as a limitation.” They estimate that the Brazilian sports sector could lose approximately R$ 1.6 billion (US$281 million) as a result.
“The prohibition of brand exposure for operators on static signage in sports venues eliminates crucial revenue streams for clubs. The financial losses will be significant even for large clubs,” the clubs stated.
The clubs also warned that the new rules could be detrimental to the survival of smaller clubs and could lead to legal battles due to existing long-term contracts with operators.
Limitations on Communication
Seckelmann stated that the bill, if enacted in its current form, would impose further limitations on how betting operators communicate with the public.
This would affect media agreements and brand recognition, which are essential for creating a competitive but regulated market.
“International experience shows that these restrictions often do not produce the intended results in terms of public health,” Seckelmann said.
“A clear example is Italy, where the Dignity Decree of 2018 imposed a general ban on gambling advertising. Despite the measure, studies and government data have not revealed any significant reduction in problem gambling rates. Instead, the ban has harmed regulated operators, while illegal betting activities have continued to thrive.”
Changes to the Bill Before the Senate
According to Portinho’s amended bill, betting advertisements during live broadcasts of sporting events would be prohibited.
The use of artists, influencers, or athletes in advertising would also be restricted, with an exception for athletes whose careers ended five years prior.
Betting advertisements would only be permitted on open and subscription media websites between 7:30 PM and midnight. Similarly, radio advertisements would be restricted to between 9:00 AM and 11:00 AM and between 5:00 PM and 7:30 PM.
An exception to the advertising ban in stadiums and sports facilities allows betting operators who are official sponsors of a stadium or sports team to advertise. There will be a limitation of one per team when it comes to kits.
Senator Portinho stated that the restrictions on gambling advertisements were necessary due to the betting sector’s inability to self-regulate.
“One year after the approval of this law, our society is sick, it is completely addicted to betting,” Portinho said. “Football clubs are addicted to betting. Communication companies are addicted to betting, advertising, the money they receive from bets. And with this pandemic, it is up to us to impose discipline.”
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