Brazil’s Ministry of Justice and Public Security has implemented sweeping measures to regulate gambling advertisements through Order No. 2,344/2024. This initiative, spearheaded by the National Consumer Secretariat (SENACON), aims to eliminate promotional practices tied to gambling bonuses while safeguarding vulnerable populations, including children and adolescents.
Key Provisions of the Ban
The newly issued order prohibits all forms of gambling incentives, including bonuses, sign-up offers, and promotional credits, even if framed as general advertising. It also mandates the suspension of fixed-odds betting advertisements targeted at minors. These restrictions are part of a broader effort to mitigate risks such as problem gambling, consumer exploitation, and financial instability.
Bonuses, often used as marketing tools to attract players, are seen as potentially harmful for encouraging excessive gambling. “The safety of vulnerable people in the consumer relationship, with special attention to hyper-vulnerable people such as children and adolescents,” is a central focus of the directive.
Operators who fail to comply face daily fines of R$50,000 (approximately €8,000). To avoid penalties, companies must submit a transparency report detailing their compliance measures within 10 days.
Broader Regulatory Efforts
The order builds on earlier measures, such as Ordinance No. 615 issued by the Ministry of Finance, which banned welcome bonuses and upfront incentives for gambling. According to the ordinance, operators are prohibited from granting “advancements, bonuses, or prior advantages, even for promotional purposes.”
As part of the regulatory framework, licensed operators must also adhere to stricter guidelines regarding payment systems, player protections, and advertising content. The Secretariat of Prizes and Bets (SPA) oversees this transition, ensuring operators meet requirements during the licensing period.
Protecting Vulnerable Groups
This crackdown reflects the government’s commitment to shielding at-risk individuals from gambling-related harm. Studies conducted earlier this year revealed troubling trends, such as welfare funds being misused for online gambling. The Ministry aims to address these issues by limiting exposure to gambling promotions, particularly for minors.
In addition to banning bonuses, the measures aim to reduce the societal costs of gambling, including problem gambling and financial distress among consumers. Advocates argue these regulations are necessary to foster a safer and more sustainable betting environment.
Implications for Operators
With Brazil’s regulated betting market set to launch officially on January 1, 2025, these measures will significantly impact operators. Campaigns relying on bonus incentives will require a complete overhaul, and compliance with these stricter advertising standards will be critical for maintaining operational licenses.
Regis Dudena, President of the SPA, confirmed that final licensing procedures are underway. By the end of December, qualified operators will be announced, and they will have 30 days to meet all authorization requirements, including paying an upfront concession fee of R$30 million (€5 million).
Source:
“Brazil moves to ban marketing of betting bonuses“, igamingbusiness.com, November 19, 2024.
