Brazil Cracks Down on Gambling Bonus Marketing

In a decisive move to regulate its burgeoning gambling industry, Brazil’s National Consumer Secretariat (Senacon) has published Order No. 2,344/2024, introducing stringent restrictions on promotions within gambling in the country, maintaining adequate protections for vulnerable groups. The order mandates an immediate nationwide ban on the marketing of betting bonuses and ads aimed at problem gamblers or minors.

Uncompliant Operators Face Hefty Fines

The new regulation encompasses all iGaming and sports betting offerings, signaling a significant shift in Brazil’s gambling sector. These updates are effective immediately, and operators must file a detailed transparency report within 10 days detailing the measures they took to comply with the new restrictions. Non-compliant companies face a fine of R$50,000 ($8,700) daily until they regain compliance.

Monitoring of online gaming and betting market on bonuses and advertising of betting games. Preventing and combating over-indebtedness. Guaranteeing the safety of vulnerable people in consumer relations, with special attention to hypervulnerable people such as children and adolescents.

Order No. 2,344/2024 excerpt

These measures critically apply to operators that have been white-listed to continue operating during the gambling sector’s transition period between 1 October and 31 December as Brazil prepares to launch its regulated market on 1 January 2025. They will remain in place after that period, ensuring robust safeguards against the proliferation of gambling harm.

Brazil Remains Committed to a Fair and Sustainable Industry

This development aligns with Brazil’s broader efforts to balance stakeholder interests and customer protections. The government recently introduced more emergency regulations, banning the use of state-issued welfare cards for gambling-related transactions. Recent data by the Central Bank of Brazil revealed that 20% of welfare funds were spent on online gambling in August.

Despite their abrupt nature and possible disruptions to gambling operators, such updates remain critical to shielding vulnerable households from the financial strain caused by unregulated gambling habits. Justice Luiz Fux, who championed many of these measures, highlighted mounting evidence of rising gambling harm, necessitating the government’s urgent response.

Senacon’s directive highlights rising concerns regarding gambling’s broader social impact in Brazil. The government recently launched a Parliamentary Commission of Inquiry (CPI) to investigate the financial consequences of online betting on family budgets, identifying issues and hopefully alleviating concerns. The last two rounds of emergency regulations indicate that the government may have more such measures planned as the 1 January deadline fast approaches.

Brazil’s proactive stance on gambling regulations may provide an example for other nations facing similar issues. However, the rapid regulatory changes may cause uncertainty among gambling operators, potentially leading to economic setbacks and hampering their marketing efforts. The nation must thus walk a fine line between protecting vulnerable groups and fostering a fair and sustainable industry.