A committee in the Brazilian Senate has recently advanced a bill that could drastically change the marketing landscape of the country's gambling industry. The bill aims to amend the "Sports Betting Law" by proposing a nationwide ban on advertising for sports betting and online gaming, while strictly prohibiting the use of the electoral environment for related betting promotions. The proponents link problem gambling to the deterioration of national mental health, viewing this move as a proportionate legislative response to a serious social issue. However, this potential strict ban is colliding head-on with a newly established, $7 billion regulated market. Balancing public protection and ensuring the competitiveness of the legal market has become a new challenge for Brazilian regulators.
Core Content and Legislative Background of the Ban
The bill, passed by the Senate Committee on Science and Technology, has an extremely broad scope of restrictions aimed at significantly erasing gambling's enticing information from the public view:
•Media coverage: Includes television, radio, newspapers, magazines, social media, and sponsorship ads for sports events and clubs.
•Severe penalties: Violators could face fines of up to $2 million, and even suspension or revocation of operating licenses.
•Potential exemptions: According to the bill, future amendments may allow sponsorships for Olympic sports clubs.
The bill's promoter, Senator Damares Alves, emphasizes that this is a legislative response to diagnosed severe social issues, aimed at setting clear boundaries for the commercial behaviors of gambling companies and preventing the electoral environment from being exploited by such activities. The bill will next be submitted to the Committee on Constitution, Justice, and Citizenship for review.
Market Status and Regulatory Contradictions
This ban proposal comes at a delicate moment. Brazil's regulated online gambling market only officially started in January 2025, initially with only 14 operators, but the number of licensed operators has now surged to over 80. In its first year, it generated approximately $7 billion in total gambling revenue (GGR). A Brazilian lawyer commented, "I think the market is a huge success... Everything Brazil has done in the past two years, all the regulations, federal laws, and all progress have been great."
However, the success of the market comes with new regulatory concerns. One of the main goals of legalizing the gambling industry in Brazil was to eliminate the illegal market. But the industry is worried that the proposed advertising ban, along with the recently approved tax increase policy (gambling tax will increase from the initial 12% by 1% each year until it reaches 15% in 2028), might weaken the competitiveness of legal operators, giving the illegal market a breather. As PASA's official website points out in its compliance analysis, emerging market regulatory policies need to precisely balance "protection" and "guidance".
International Perspective: Global Convergence in Advertising Regulation
Brazil is not the only country scrutinizing gambling advertising; several jurisdictions worldwide have implemented varying degrees of restrictions, creating a clear regulatory trend:
Europe:
•Belgium (2023): Bans all gambling advertising on television, radio, newspapers, and public places.
•Netherlands: Bans non-targeted advertising, with new motions possibly requiring a complete elimination of gambling ads.
•Spain (2020): Strictly limits gambling ads on television and prohibits celebrity endorsements and jersey sponsorships.
•Italy (2018): Completely bans gambling ads on television, radio, and digital platforms.
Americas:
•Canada: Since the legalization of sports betting in 2022, over 40 senators are actively pushing for a nationwide advertising ban or strict restrictions.
•Argentina: Also considering a complete ban on gambling advertising and sponsorships.
This international trend provides a reference background for Brazil's legislative discussions and indicates that the global gambling marketing environment is moving towards stricter and tighter directions.
————
This article is from "PASA-Global iGaming Leaders" gambling news channel: https://t.me/pasa_news
Original in-depth gambling channel: https://t.me/gamblingdeep
Free data reports: @pasa_research
PASA Matrix: @pasa002_bot
PASA official website: https://www.pasa.news
