Brazil Sports Commission Questions Tight Restrictions

Worried stricter gambling ad rules could backfire? Brazil’s Sports Commission just debated two bills that toughen betting advertising limits. Critics say it could spur illegal play. You seek balanced policy that protects consumers without driving them into the shadows. The Commission aims to find that sweet spot. Read on to discover how Brazil’s lawmakers and industry leaders argue over the future of betting promotions.

Brazil’s Gambling Ad Showdown: Sports Commission Warns of Black Market Risks

3 Key Points

1. PL 2,985/2023 bans all betting ads. PL 3,405/2023 limits influencer and celebrity endorsements.
2. Officials say current rules are ineffective. Yet some fear new restrictions push bettors toward illegal sites.
3. Operators cite Italy’s ban as cautionary. They argue ad bans harm consumer awareness and boost unregulated markets.

Brazil’s Sports Commission (CEsp) convened on Wednesday (9 April) to examine two proposed bills that would tighten gambling ad restrictions. The session spotlighted ongoing worries that current rules do not adequately protect the public. Attendees also raised concerns over potential pitfalls if regulations become too strict.

The Secretariat of Prizes and Bets (SPA) introduced Normative Ordinance No 1,231 last year to govern advertising for Brazil’s newly regulated betting market. These rules require ads to promote social responsibility, limit targeting of minors, and clarify sponsor messages. However, Senator Carlos Portinho, rapporteur for PL 2,985/2023, claims these measures have produced “little results” so far. He believes predatory ads still saturate the market, exposing children to gambling.

Portinho wonders how officials can proclaim they have a “restrictive ordinance” when ads remain widespread. He notes that minors still see promotional campaigns, which runs counter to the intended audience. His sentiments mirror those of other lawmakers who think the SPA’s enforcement is slow or inconsistent. They want concrete changes—like those in PL 2,985/2023, which bans all gambling ads across broadcast and online channels.

On the other side, PL 3,405/2023 proposes banning celebrities, athletes, and social media influencers from endorsing gambling brands. Its backers say high-profile endorsements push casual viewers into risky behavior. Sports teams could also be barred from featuring betting sponsors on jerseys or stadium signage. Supporters argue these steps cut gambling’s glamorization, particularly for younger fans.

Critics of these proposals highlight unintended consequences. Alexandre Fonseca, SuperBet Brazil’s CEO, spoke during the hearing. He stressed that illegal platforms represent a graver threat, with around 20,000 such sites operating in Brazil. Many lack responsible gaming policies or ID checks. He argues heavier ad restrictions on legal companies do little good if consumers still encounter unregulated channels.

Others fear a scenario similar to Italy’s. Pietro Cardia Lorenzoni, legal director of the National Association of Games and Lotteries (ANJL), explained that Italy’s blanket ad ban hurt consumer awareness. Players could not distinguish between authorized brands and illicit operators. As a result, the black market rose, offering no consumer protections or funding for social programs.

Lawmakers and stakeholders remain divided. Some think tough marketing laws protect vulnerable groups. Others fear blanket bans stifle legitimate operators, inadvertently boosting rogue websites. The current regulations require disclaimers, age-verification systems, and limited promotional content. However, enforcement is an ongoing challenge. SPA’s Daniele Correa Cardoso said the digital sphere complicates oversight. Removing illicit ads or preventing them from reaching minors can be slow.

Public defender Thiago Henrique Cunha Basílio believes a simple “play responsibly” tagline is insufficient. He urges thorough guidelines that address the unique vulnerabilities of some gamblers. Yet Fonseca insists the real issue is the unlicensed market. He sees no point in further clamping down on licensed operators while ignoring underground operators.

As the legislative process continues, the Sports Commission’s debate underscores Brazil’s struggle to strike a balance. Lawmakers want to shield consumers from aggressive or deceptive advertising. Industry leaders want fair competition, robust enforcement, and a chance to inform players about regulated options. Observers say the next steps will likely revolve around refining the bills to address both concerns.

Brazil’s Sports Commission is grappling with how far gambling ad restrictions should go. Two new bills propose sweeping limitations, prompting fierce debate about their real impact. While some worry about advertising’s influence on minors, others warn a total or partial ban could nudge bettors toward illegal markets. For now, lawmakers must weigh responsible marketing strategies against the risk of driving gamblers into unregulated spaces.