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This week saw further efforts by Brazilian legislators to reinforce safeguards for children and teenagers in the gambling industry. The Committee on Social Security, Social Assistance, Childhood, Adolescence, and Family in the Chamber of Deputies voted for a bill banning the use of minors in advertising products such as lottery draws and betting sites.
Lawmakers stated that the initiative intends to toughen existing guarantees in physical spaces as well as on digital platforms where gambling-related content is becoming more prevalent via social media channels, mobile applications and video platforms.
The bill approved this week represents a substitute text prepared by Congresswoman Meire Serafim in connection with Bill 3724/24, presented to the Chamber by Deputy Túlio Gadêlha. The new proposal was developed following discussions in Congress to improve provisions introduced by Law 14.790/23 and the Child and Adolescent Statute (ECA).
As explained by Congresswoman Serafim during the submission of her report, “Even though consumption and purchases were already prohibited, there was no law specifically dealing with advertising.” “And that’s precisely what this project does, prohibiting this kind of publicity on any digital or communication platform“, she added.
Focusing on Online Gambling Promotions and Social Media Stars
One of the key features of the proposed legislation is a ban on promotional activities through online gamblers or teenage creators and content producers who are active on various social media platforms.
Under the proposal, advertising activities that promote betting products to underage audiences would become an administrative offense. At the same time, lawmakers are concerned about the potential influence of internet celebrities promoting gambling-related products.
The draft also fits into ongoing discussions in Brazil about the regulation of responsible gambling, control over digital promotions and advertising activities related to the regulated betting market in the country.
Legislators supporting the bill noted that there are certain restrictions preventing minors from buying or using gambling products. At the same time, there is no prohibition on promotional activities targeting underage users indirectly on digital platforms.
Significant Penalties for Operators, Agencies and Representatives
The proposed text introduces significant penalties for companies, betting agencies and representatives involved in the organization of advertisements featuring minor players.
In case of violating the rules, organizations would have to pay administrative fines ranging between BRL 3,000 and BRL 10,000. However, the new regulations include additional aggravating circumstances in case of repeat violation within 12 months or commercial transactions.
If the violation is committed again, then the fine amount would be doubled. Even more serious penalties could apply to representatives of betting companies or minors’ parents who organize the advertisement of gambling products.
Violations in these situations would be punishable by a fine increased tenfold. However, the highest financial penalties would apply to betting operators who arrange advertisements with the participation of minor players. This category could include fines multiplied by one hundred.
Next Steps Needed for New Rules
Now, according to the Brazilian concluding procedure, the bill can proceed to further stages in Congress without having to be immediately voted on by the plenary chamber unless challenged by legislators.
First, the legislation would need to pass an examination in the Committee on the Constitution and Justice (CCJ), which is expected to examine the constitutional aspects of the project.
Once approved, the restrictions and penalties proposed in the draft bill would enter into force only after receiving final approval by both chambers of Congress, as well as a signature from the president of the republic.
The initiative is arriving amid a growing regulatory discussion concerning gambling-related ads and exposure of minors to online gambling platforms.
Source: iGaming Brasil
