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The Science and Technology Committee of Brazil’s Senate has endorsed a bill that would strengthen a limit on gambling advertisements across the country.
The proposal modifies Brazil’s Sports Betting Law and has now been forwarded to the Constitution, Justice, and Citizenship Committee for further examination.
If in motion, the law will impact advertisements for sportsbooks and online betting on nearly all major platforms. This includes television, radio broadcasts, newspapers, magazines, online platforms, and sponsorships linked to sports teams and events
The proposed regulations would also clearly ban the promotion of election betting.
The active members of the legislation conclude that stricter regulations are important to mitigate social influence. Senator Damares Alves, a prominent supporter of the legislation, associated gambling promotion with increasing mental health problems in Brazil. She stated that the bill provides a “proportional legislative response” to the issues highlighted by the Senate.
Potential changes are still under consideration
Though the proposal is major, it may not be conclusive as it stands now.
A Senate announcement indicates that legislators may propose changes before the upcoming vote.
One potential change could allow sponsorships for clubs involved in Olympic sports, creating a particular exemption. Despite revisions, the legislation would enforce harsh penalties for infractions. Operators could incur penalties reaching $2 million, along with potential licence suspension or revocation. For licensed firms, the risk tied to conducting business in Brazil may rise significantly.
A Developing Industry With Growth
The fully licensed gambling sector in Brazil started operating in January 2025. 14 operators were permitted in the nation for the first, but that number has grown into more than 80. The industry generated about $7 billion in total gambling income in its first full year. The launch was mostly described as a success by the relevant experts in the field. The countries regulatory progress was praised, particularly by Udo Seckelmann, who oversees the crypto and gambling at Abvogados. He highlighted how quickly and comprehensively the law has changed during the past two years. The government’s main goal in regulating gaming was to reduce illicit activity. But today, some interested parties worry that limitations on advertising would defeat that goal. Unlicensed businesses may benefit from licensed brands’ limited visibility.
Increased taxes create additional strain
The discussion about advertising rose simultaneously with the recent adjustments to Brazil’s tax system. Last month, President Luiz Inácio Lula da Silva sanctioned a phased tax hike. Gambling taxes will increase from 12% by one percentage point annually until they hit 15% in 2028. Critics claim that increased taxes along with advertising restrictions may delay market expansion. They warn that too many limitations could drive players back to offshore sites. Regulators, nonetheless, assert that safeguarding consumers should be the main focus.
Brazil follows an international pattern
Brazil is not the only country viewing restrictions on gambling advertising. Various nations have applied either complete or partial bans on advertising. In 2023, Belgium prohibited the majority of gambling advertisements in public areas and various media across Europe.
The Netherlands has limited non-targeted gambling advertisements and is contemplating stricter actions. Since 2020, Spain has implemented stringent advertising regulations, including prohibitions on celebrity endorsements. Since 2018, Italy has finalized almost a complete prohibition on gambling advertisements. Besides EU, Canada and Argentina are also reviewing strict regulations. Brazil’s inicitiave indicates a wider international adaptation towards more strict regulation of gambling advertising.
What happens next
The advancement of the bill in Brazil’s Senate will be monitored attentively by operators globally. A conclusive choice may alter the competition landscape for licensed firms in one of Latin America’s biggest markets. Currently, the sector is anticipating the upcoming committee evaluation and any possible changes.
Source: Brazilian Senate
