Brazilian Senate Approved Bill Restricting Gambling Ads

The Brazilian Senate has approved Bill PL 2.985/2023, introducing new limitations on gambling-related advertising, despite many voices from the spots sector warning that this could have negative financial consequences.

Brazilian Senate Passes the Bill

Initially, the bill proposed a complete ban on all gambling advertisements. However, it was later revised to specifically restrict the promotion of fixed-odds betting. The restrictions will cover direct advertisements, as well as promotional activities involving athletes, artists, media personalities, influencers, or public figures.

Talks of reviewing some gambling rules have been circulating in the Brazilian political sphere for quite some time. Discussion on limiting gambling advertisement picked up in pace in April as Senator Styvenson Valentim pushed it forward. He also noted the harmful impact of gambling, stating that many individuals are degrading themselves, losing their assets, developing psychological issues, and even falling victim to suicide or pressure from loan sharks.

Valentim further highlighted that these individuals are often misled into believing they can build wealth or become rich through betting, influenced by deceptive portrayals on social media or television. According to Valentim, such advertisements often feature influencers or public figures flaunting luxury cars, expensive watches, and designer clothing. This creates a false impression that this lifestyle is attainable through gambling, according to the senator.

What Will the Bill Restrict?

Bill PL 2.985/2023 outlines several specific prohibitions on gambling advertisements. These include ads during live sports broadcasts, the display of updated betting odds during events, and advertisements in print media. It also bans direct or indirect sponsorship of referees, the use of drawings, animations, mascots, or characters, as well as unsolicited messages, calls, or notifications sent to customers.

Furthermore, advertising campaigns must not portray betting as a desirable aspiration, a source of income, a solution to financial problems, or a way of life. The bill also prohibits the use of gambling tutorials or instructional content, whether direct or implied.

Additionally, the bill prohibits any advertising containing sexist, misogynistic, or discriminatory content, including the objectification of the human body or the promotion of gender stereotypes. Advertising in stadiums or other sports venues is also not allowed under the new rules.

Some Oppose the Changes

Despite the bill passing in the Senate, some parties, both state and private, have criticized it. Notably, the Brazilian Institute for Responsible Gaming (IBJR) expressed serious concern, cautioning that its “severe restrictions” could create opportunities for the illegal gambling market to expand. According to the IBJR, legal advertising plays a crucial role in informing the public and enabling individuals to distinguish between regulated platforms, which offer a safer gaming experience, and unregulated, black market alternatives.

Various soccer clubs have also stood up against the new regulations, as many fear incoming economic perils. In a joint statement with Games Magazine Brazil, they said that the Brazilian sports sector could face an immediate annual loss of approximately R$1.6 billion (around USD $310 million) if the proposed law is implemented. The statement also says that the new rules could be detrimental to the survival of smaller clubs.

The joint statement ends with clubs appealing to the Senate committees reviewing the bill to proceed with caution, responsibility, and an understanding of the potential damage it could cause to football and Brazilian sports, both considered vital cultural assets of the nation.