With the approval of Bill No. 2985/2023 in the Senate, Brazilian gambling advertising is facing stricter regulation. Although the initial proposal for a complete ban on gambling advertising was removed, the existing bill still prohibits gambling advertisements during live sports events and restricts the appearance of active or retired athletes, celebrities, and internet celebrities who have been retired for less than five years in related promotions. The bill has passed the Sports Committee review and is being submitted to the House of Representatives for consideration.
Although the regulations may not officially take effect until 2026, lawyer Udo Seckelmann pointed out that the bill lacks data support. "While the intention is good, we need evidence to prove the effectiveness of these restrictions. The actual situation shows that responsible regulation is far more effective than prohibition," he said.
Are the current regulations sufficient?
Last year's Normative Decree No. 1231 already set limits on advertising content, such as prohibiting the promotion of the social appeal of gambling, not targeting minors, and advertisements must display the "18+" sign and convey the concept of responsible gambling.
Legal expert Luiz Felipe Maia believes that this set of regulations is quite sufficient for the Brazilian market, which has just entered the regulatory stage. "The current regulations both protect the public and allow legal operators to positively present themselves, helping the public recognize legal channels."
Executives from licensed gambling companies EstrelaBet and Betsul also support the current regulations, but Betsul CEO Fernando Garita hopes that the authorities maintain clarity and consistency in advertising enforcement. "It is necessary to convey a responsible message, but it should not stifle market vitality."
Controversy over influencer advertising
Despite existing regulations, influencer advertising remains a focal point. In the "Fortune Tiger" game incident, several internet celebrities were investigated and even arrested for misleading fans to download a scam game. Such incidents have prompted regulatory authorities to pay attention to influencer advertising.
In May, internet celebrity Virgínia Fonseca was summoned by the parliamentary committee for her published gambling content. Lawyer Felipe Maia stated that penalizing violators, including fines or even criminal responsibility, is a necessary step to reverse the industry atmosphere.
Excessive restrictions may lead to the risk of a black market
Experiences in Germany, Italy, and Argentina have shown that excessive restrictions on gambling advertising can stimulate the illegal market. For example, Germany's strict limits on advertising time and content resulted in nearly half of the users turning to black market platforms. Italy's complete ban also failed to suppress the growth of the black market.
"We cannot ignore the convenience of platforms like Telegram in spreading illegal gambling information," Garita warned, "Once legitimate operators lose advertising channels, illegal ones are more likely to attract users."
Advertising is also a key means for compliant operators to identify themselves. All legal advertisements must include warning labels and addiction tips, helping users recognize and choose regulated products. "Advertising is our tool for establishing a framework of trust and safety," Garita said.
The dual challenge of politics and public opinion
In recent years, the public's negative perception of gambling has gradually improved. According to DataSenado data from April, 60% of respondents support the legalization of physical gambling. However, in the political arena where anti-gambling voices are still strong, the advertising restriction bill reflects the pressure from conservative and religious groups.
Felipe Maia pointed out that this reaction stems more from a "political echo chamber," "Some politicians do not understand the industry and are merely catering to the fears of their voter base."
EstrelaBet executive Fraga believes that the gambling industry needs to proactively educate the government and the public. "Many people are unclear about the meaning of legal gambling; we need to explain, demonstrate transparency, and social responsibility."
Industry division weakens response capability
Currently, there are five different industry associations in the Brazilian gambling industry, with differing opinions and a lack of a unified voice. Maia noted that some legislators have said, "It is difficult to deal with the industry because each association has a different stance."
Garita also acknowledged that the lack of collaboration makes it more difficult to deal with excessive regulation. "We need to unite to represent the industry's interests."
At a Senate hearing, bill proponent Carlos Portinho even stated outright that the push for restrictions was because the industry "failed to effectively self-regulate."
Conclusion: The critical moment has arrived
Legal expert Seckelmann reminds that the formulation of advertising rules should be based on data, reality, and constructive opinions, rather than moral panic. "Responsible advertising placement is key to guiding users to legal, safe platforms."
Currently, the gambling advertising bill is about to enter the House of Representatives for consideration. Facing the storm of advertising restrictions, if the Brazilian gambling industry cannot integrate its strength and speak based on facts, it may not only lose advertising rights but also potentially shake the foundation of the entire regulated market.
