Brazil has officially moved to tighten its gambling rules, with a new regulation banning all gambling bonuses and imposing stricter advertising controls. The government’s latest effort aims to protect vulnerable populations, curb excessive gambling, and reduce the societal risks linked to online betting.
Key Provisions of the Ban
In a bold move to protect consumers, the Brazilian Ministry of Justice and Public Security has enacted Order No. 2,344/2024, which specifically targets gambling bonuses. The order, put forth by the National Consumer Secretariat (SENACON), prohibits a range of promotional incentives such as sign-up bonuses, credits, and other gambling-related perks. Even generic gambling advertisements are not spared if they carry these types of incentives.
The motivation behind this decision stems from concerns about the potential harms these promotions cause, particularly when it comes to problem gambling. Research has shown that these bonuses can encourage excessive gambling, putting players, especially vulnerable groups like children and adolescents, at risk. The government’s approach is clear: ensure that gambling advertisements no longer glamorize risk-taking behaviors and exploit those most susceptible to addiction.
The newly-imposed restrictions also target fixed-odds betting ads, which will no longer be allowed to target minors. Operators who flout these rules will be hit with fines of up to R$50,000 (approximately €8,000) per day. To avoid these penalties, companies will need to submit detailed transparency reports within 10 days, outlining their compliance with the new regulations.
Broader Regulatory Efforts
This ban is not Brazil’s first attempt at controlling the gambling industry. It builds on previous regulatory actions, such as Ordinance No. 615, which already prohibited welcome bonuses and other upfront gambling incentives. The latest measures ensure that these changes are enforced across the entire sector.
Under the new rules, gambling operators must comply with more rigorous standards regarding payment systems, consumer protection, and advertisement content. The Secretariat of Prizes and Bets (SPA) will oversee the entire process, ensuring that operators follow these enhanced rules as part of their licensing conditions.
The overarching goal of these measures is to address the societal costs of gambling—issues like financial instability, consumer exploitation, and the escalating problem of addiction.
Protecting Vulnerable Groups
This regulatory crackdown is particularly focused on protecting those at the greatest risk from gambling harm. Earlier studies had revealed concerning patterns, including the misuse of welfare funds on online gambling sites. The government’s new regulations aim to limit exposure to these types of promotions, especially among minors and young adults.
Gambling, if left unchecked, can spiral into a serious problem, leading to financial distress and addiction. Brazil’s intervention seeks to tackle these risks by reining in marketing tactics that are considered predatory or overly persuasive. By eliminating gambling bonuses, the hope is to reduce the overall appeal of betting for vulnerable groups.
Many advocates believe these measures are a necessary step toward creating a safer betting environment for all. They argue that while the gambling industry is undeniably profitable, the societal costs—both financial and emotional—can be too high to ignore.
Implications for Operators
The latest regulatory changes will significantly impact the operators within Brazil’s gambling market. With the official launch of the regulated betting market set for January 1, 2025, these new rules will force companies to reassess their marketing strategies. The long-standing practice of offering gambling bonuses as a major incentive will no longer be a viable tool. As a result, many operators will have to reconsider their promotional tactics in a way that ensures they comply with the updated regulations.
The government has made it clear that any operators caught violating these new rules will not only face fines but could lose their operational licenses entirely. By the end of December, the government will announce which operators are officially licensed, giving them a brief 30-day window to ensure they meet all regulatory requirements. One key stipulation is the payment of an upfront concession fee of R$30 million (€5 million), which will secure their place in the market for the long term.
As the market prepares for these changes, it’s clear that Brazil is prioritizing consumer safety and sustainability over profits in the gambling sector. But it’s still unclear how operators will adjust to this shift in the regulatory landscape.
