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Silvia Pavlof December 21, 2023 3 min read
Brazil Advances Measure Against Influencers Promoting Unregulated Gambling
The proposal, which passed the committee's scrutiny, is now set to undergo further evaluation in the Finance and Taxation, Constitution and Justice, and Citizenship committees, before potentially reaching the plenary session for broader discussion
The Communication Committee of Brazil’s Chamber of Deputies has given the green light to a proposal prohibiting social media influencers from advertising unregulated gambling sites.
Brazilian Legislators Unveil Strict Guidelines for Influencers
The approved proposal, introduced by Federal Deputies Fred Linhares and Ricardo Ayres, places the responsibility on influencers to ensure that their content does not promote unregulated gambling through videos, stories, or any other online communication channels.
Failure to comply with these guidelines may result in penalties for the influencers, ranging from warnings to suspensions lasting up to six months, with the possibility of extension, reported Brazilian media outlet CartaCapital. Social media platforms could also face fines of up to 2% of their revenue for non-compliance.
The proposal, known as PL 3915/23, was presented as a substitute by Congressman Fred Linhares, who emphasized the necessity of preventing the unwarranted promotion of betting companies by influencers. Linhares stressed the considerable impact such public figures have on their followers, influencing behaviors and decisions.
The substitute proposal goes beyond just restricting influencers from promoting unregulated gambling. It also bans advertising of regulated games directed at minors and introduces several additional measures to ensure responsible advertising practices.
Influencers are required to disclose the commercial nature of their content, provide information about the funding source for betting activities, and inform audiences about the negative consequences associated with gambling.
Brazil Enforces Influencers to Establish Contracts with Gambling Operators
Additionally, the substitute proposal mandates that influencers establish written contracts detailing the nature of their advertising work with clients. It also addresses the issue of foreign providers, specifying that advertising by foreign entities must be conducted through their representatives in Brazil.
The federal government aims to further its efforts in promoting responsible gambling through this proposal by encouraging awareness campaigns about the risks associated with gambling. These campaigns are proposed to be developed collaboratively with educational institutions and healthcare professionals.
This move comes amidst Brazil’s ongoing process of regulating sports betting. While sports betting was legalized in 2018, the regulated market is yet to be launched.
Brazil’s Senate has approved regulated sports betting but rejected the inclusion of iGaming in the latest version of Bill 3,626/2023. The bill, which also discarded a proposed tax hike, will now undergo further approvals in the Chamber of Deputies before potentially becoming law under President Luiz Inácio Lula da Silva.
While some welcome the move towards regulated sports betting, critics argue that excluding iGaming may inadvertently benefit the black market.