Brazilian Senator Eduardo Girão, who has long opposed gambling, proposed Bill No. 1018 this week, aimed at banning specific incentives and retention mechanisms in the iGaming sector, including loyalty programs and cashbacks. The bill seeks to amend Law No. 14,790, which legalized gambling in December 2023. If passed, licensed operators will not be allowed to "establish, maintain, or disclose" mechanisms that incentivize, retain, or stimulate gambling. In plain terms, even common operational methods like point rebates are to be banned.
Core of the Bill: Complete ban on loyalty programs, cashbacks, and gamification
Bill No. 1018 will prohibit operators from setting up loyalty, reward, or point programs, as well as offering cashbacks to bettors. Promotions based on deposits, account balance maintenance, or continuity of platform activities will also be banned. Gamification features are equally doomed, with operators not allowed to set goals, tasks, or challenges, nor rank players based on betting activities. Personalized communication will be strictly limited to "informative, institutional, or educational" interactions to prevent inducements based on players' historical betting behavior. If the bill becomes law, licensed operators will have 90 days to adjust their platforms and contracts.
Girão's stance: Legalization has brought "profound social concerns"
Girão has consistently held an anti-gambling stance, repeatedly calling for the overturn of online gambling regulations. In his bill justification, he states that legalization has "brought about a profound social, economic, and institutional concern scenario." Although welcome bonuses have been banned, he believes further restrictions are necessary to prevent operators from retaining players based on their historical behavior. He points out that the economic logic of this activity itself relies on users' repeated losses, and the state has a responsibility to act to mitigate its harmful effects.
Political background: The aftermath of Lula's remarks, delicate situation for the industry
The licensed gambling sector has become a divisive topic in Brazilian politics. Earlier this month, President Lula called for government unity to ban online gambling, describing gambling addiction as a "tragedy," which sparked a strong backlash from the industry. Industry consultants warn that such remarks disrespect investments in the Brazilian market and that bans only help to boost black market activities. Girão's new bill is proposed against this backdrop, further intensifying the uncertainty of industry regulation. Want to know the latest developments in Brazilian gambling policy? PASA official website keeps track.
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This article is from "PASA-Global iGaming Leaders," a gambling industry news channel:https://t.me/pasa_news
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