Brazil Senate Approves Betting Ad Restrictions

Brazil’s multi-billion-dollar betting market is facing unprecedented turbulence.

On the heels of the Senate’s approval of Bill 2,985/2023, harsh restrictions on gambling advertisements threaten the industry’s legal progress.

Operators, sports clubs, and legal experts are sounding the alarm: these measures may drive players toward illegal sites and strip clubs of crucial sponsorship revenue.

Learn why stakeholders are calling the bill “disastrous” and what lies ahead for Brazil’s regulated gambling market.

Brazil Betting Market in Crisis as Senate Passes Strict Advertising Bill

3 Key Points

• Advertising Restrictions Tighten: Celebrity endorsements, live sports ads, and static signage in stadiums face heavy limitations.
• Industry Backlash Grows: The IBJR and top football clubs warn the restrictions risk fueling the black market and undermining responsible gambling.
• Economic Impact Looms: Clubs could lose over BRL 1.6 billion in sponsorship revenue, with smaller teams at risk of financial collapse.

Brazil’s Gambling Industry Faces Major Setback with New Ad Restrictions

Brazil’s sports betting sector has taken a critical hit following the Senate’s recent approval of a controversial advertising bill—Bill 2,985/2023. The legislation, now passed by the Plenary due to procedural urgency, introduces sweeping limitations on betting-related advertisements across media, live events, and sports sponsorships.

At the core of the bill is a ban on the use of celebrities, influencers, and active athletes in advertising campaigns. Furthermore, betting ads are now confined to narrow time windows—between 7:30 pm and midnight on television and between 9 am–11 am and 5 pm–7:30 pm on radio. In stadiums, only one operator per team may advertise, provided they are the official sponsor.

These restrictions have drawn fierce criticism from all corners of the regulated market. Legal expert Udo Seckelmann of Bichara e Motta Advogados called the initial full ban proposal “disproportionate and disconnected” from Law No. 14.790/2023. Even after revisions, he warned that the bill still threatens to “compromise communication between licensed operators and players,” potentially handing the advantage to unregulated platforms.

The Brazilian Institute for Responsible Gaming (IBJR) echoed these concerns, stating that such “severe restrictions” hinder public awareness of safe, licensed operators. The organization noted that legal advertising plays a vital role in distinguishing regulated brands from black-market alternatives—essential in promoting safer gaming environments.

Brazil’s top football clubs are also voicing their disapproval. In a rare joint statement, several teams labeled the bill a “prohibition disguised as a limitation,” predicting a BRL 1.6 billion loss in annual revenue. They also highlighted legal liabilities stemming from the sudden disruption of long-term sponsorship agreements.

Senator Carlos Portinho, who amended the original proposal to soften the blanket ban, defended the bill by citing concerns over betting addiction. He stated, “Football clubs are addicted to betting. Communication companies are addicted to the money they receive. With this pandemic, it is up to us to impose discipline.”

However, critics argue that similar measures in Europe have proven ineffective. Seckelmann pointed to Italy’s 2018 Decreto Dignità, which banned gambling ads but failed to reduce problem gambling while boosting illegal operator traffic.

Under Portinho’s amendments, some sponsorship is still allowed—teams can retain a single betting partner for kit branding and stadium signage—but these are exceptions, not the rule.

The final version of the bill now poses a delicate balancing act. On one side lies a moral imperative to protect vulnerable populations. On the other, the very survival of Brazil’s fledgling regulated betting industry.

Brazil’s betting sector is at a critical crossroads. While efforts to protect consumers are valid, overly restrictive advertising rules may backfire—fueling the black market and crippling legitimate operators and football clubs alike. Stakeholders now await the next legislative steps with bated breath, hoping reason prevails before irreversible economic damage is done.

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