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The Senate Committee on Science and Technology (CCT) approved Bill 3,563/2024 on Wednesday, February 4, 2024, which is aimed at prohibiting sports betting and online gambling advertising, sponsorship, and promotional activities in Brazil. The bill is now set to move to the Constitution and Justice Committee (CCJ), where it will be further studied.
The rapporteur of the bill, Senator Damares Alves (Republicans–DF), kept the bill intact, despite Senator Efraim Filho’s (Union-PB) efforts to expand the discussion on the bill.
Scope of the Prohibition
The bill, which was authored by Senator Randolfe Rodrigues (PT-AP), seeks to modify the country’s sports betting law by imposing a ban on all forms of communication regarding fixed-odds betting in Brazil.
The bill targets all types of advertisements on the radio, television, press, magazines, billboards, internet, and social media, including sponsorships of sports events, civic events, cultural events, sports, civic, cultural, or any kind of club or institution.
The bill also targets indirect forms of advertising, including product placements on television programs, films, internet formats, sports broadcasts, native advertising on digital media, subliminal advertising, commercial promotions, social media publications, and advertising on the internet.
The bill also targets the pre-installation of betting applications on electronic devices such as smartphones, tablets, computers, smart TVs, and any other electronic device.
Ban on Election-Related Betting
Another significant feature of the bill is the prohibition of betting activities regarding the election results for Executive and Legislative Branch Offices, as well as referendums and plebiscites, at all government levels.
The bill includes a new article that reads: “Art. 33-A. The operation of physical or virtual fixed-odds betting whose object is the result of an election for positions in the Executive or Legislative Branch is prohibited.”
The fine for offenses regarding election betting can vary from R$50,000 to R$500,000, depending on the economic capacity of the offender and the gravity of the offense.
Heavy Penalties for Non-Compliance
The bill outlines severe penalties for non-compliance with the provisions of the law. The penalties include a warning, a fine from R$5,000 to R$10,000,000, temporary suspension of authorization to operate the fixed-odds betting, and permanent revocation of the operating license.
The bill includes: “Art. 16-A. The advertising of fixed-odds sports betting is prohibited throughout the national territory”, which includes all communication means.
Next Steps in the Legislative Process
The progress of the bill is subject to deliberation by the CCJ. Senator Damares Alves states that Senator Portinho (PL–RJ) is expected to play an essential role in proposing changes to the bill during the next stages.
The deliberation is expected to be part of a broader working group that will analyze this and other similar bills that the Senate is currently analyzing.
The bill, if approved in its current form or with the proposed changes, is set to introduce one of the most restrictive advertising regulations for betting and online gaming in Latin America, which will significantly impact the operating environment for betting companies in Brazil.
Source: BNL Data
