Lawmakers in Brazil passed Bill PL 2,985/2023, which enforces a blanket law prohibiting all forms of sports betting advertisements. The authorities claim that this decision will help safeguard vulnerable members of society, such as minors and problem gamblers, by discouraging them from participating in sports betting activities.
Highlights of the Story
- The bill imposes broad restrictions on how and where licensed sports betting operators can promote their offerings.
- An exception has been made for retired athletes who have not participated in professional sports for more than five years, provided they do not advertise to minors.
- Animations and AI art have also been banned from betting adverts, to prevent attracting the interest of a younger audience.
New Bill Spells a New Era for Betting in Brazil
The Brazilian Sports Commission, on Wednesday, approved a new legislation to introduce several betting ad restrictions. Bill PL 2.985/2023 marks a significant regulatory shift in Brazil’s sports betting industry. While the initial draft proposed a blanket ban on all betting commercials, the approved bill heavily restricts content promoting fixed-odds betting games across multiple media channels, including traditional and social media.
Operators can no longer use direct ad campaigns or hire influencers, artists, athletes, public figures, or communicators to promote sports betting services. Senator Carlos Portinho amended the bill, removing provisions for a blanket ban on all betting adverts. The updated regulation allows limited sponsorship by stadiums and sports teams, and limited advertisements on media channels during specific time slots.
The bill outlines specific provisions for betting ads, such as campaigns during live sports broadcasts, promoting updated odds during games, and print media ad campaigns. The bill prohibits sponsorship deals between referees and sporting operators and the use of mascots, animated characters, or drawings in betting adverts. Moreover, operators are banned from promoting their services via calls, notifications, or messages.
All forms of misogynistic, sexist, or discriminatory marketing content are also banned. Betting operators can no longer advertise their services at stadiums and sporting venues. The passing of the bill at the Brazilian Senate marks a new era of sports betting in the country. The Bill needs to clear the Chamber of Deputies before it can be enforced.
Move Draws Severe Criticism from Industry Stalwarts
Senator Carlos Portinho voiced his support for the bill, observing the regulated betting sector’s inadequacy to self-regulate promotional practices according to existing sports betting legislations. He stated that while most operators included messages promoting responsible gambling, sufficient steps to safeguard player interests were lacking.
Senator Styvenson Valentim, who drafted the bill, emphasised the alarming societal risks posed by unregulated betting ads. He highlighted key issues plaguing the industry, including public health issues among punters as a result of losses and betting addiction stemming from misleading adverts.
The senator also stated that betting ads often feature influencers, athletes, and celebrities flaunting a posh lifestyle, which misleads the audience into believing that they can attain similar wealth through sports betting. Despite being approved by the Senate, the bill has faced severe backlash from key stakeholders within Brazil’s gambling industry, which is projected to reach US$7.02bn in 2025.
A group of premier Brazilian football clubs issued a joint statement via Games Magazine Brasil, opposing the gambling ad restrictions. They argued that the updated legislation is a total prohibition disguised as a limitation and would harm the financial interests of sports betting entities operating in Brazil. The stakeholders fear that the ban could cause the sports sector to suffer damages worth €250 million.
The group expressed deep concerns about the legislation banning sports betting adverts at stadiums, which is a significant revenue source for most football clubs. They argue that the financial implications would not just inconvenience the larger clubs but would threaten the existence of smaller clubs that rely on sponsorship deals to operate.
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