The National Consumer Secretariat of Brazil (SENACON) has issued a directive to eliminate gambling-related incentives and restrict advertisements targeting minors. The decision, formalized as Order No. 2,344/2024, is part of ongoing regulatory efforts as Brazil prepares to launch its legal online betting market on January 1, 2025.
In its order, SENACON has mandated the removal of gambling incentives “throughout the national territory, any advertising of rewards related to advances, upfront payments, bonuses, or prior advantages, even under the guise of promotions, marketing, or advertising, for the purpose of placing bets.”
The directive also bans all advertising of fixed-odds betting targeting children and adolescents. Failure to comply will result in significant penalties. Operators face a daily fine of R$50,000 (approximately $2,762) for non-compliance. Additionally, companies are required to submit a transparency report within 10 days, detailing their adherence to the new regulations.
This move aligns with earlier measures introduced by Ordinance No. 615 of the Secretariat of Prizes and Betting (SPA) and the Ministry of Finance. The ordinance, published in April as the “Ordinance on Payments,” had already prohibited welcome bonuses and similar incentives.
The SPA clarified: “It is forbidden for the operating agent to grant, in any form, advancement, anticipation, bonus, or prior advantage, even if merely for promotion, dissemination, or advertising, for placing bets.”
SENACON’s director, Vitor Hugo do Amaral Ferreira, signed the new directive, emphasizing its intent to protect vulnerable consumers, particularly children and adolescents. The measures are part of a broader regulatory clampdown.
A recent study by the Central Bank revealed concerning trends, such as welfare funds from the Bolsa Familia program being used for gambling. Reports also highlighted instances of individuals gambling with money intended for essential needs like medicine, food, and clothing.
Meanwhile, Regis Dudena, President of the SPA, announced that the licensing process for operators in Brazil’s legal betting market is nearing completion. Qualified operators will be announced by the end of December, with a 30-day window to fulfill final requirements, including paying a concession fee of R$30 million ($1.6 million) and completing platform certification checks.
Last week, Brazil’s Federal Supreme Court Justice Luiz Fux issued a ruling prohibiting recipients of social welfare benefits, such as Bolsa Família, from using these funds for gambling activities. Fux’s decision, announced on Wednesday, mandates that the Ministry of Finance enact “immediate measures” to ensure that government assistance funds are not spent on betting.
Original article: https://www.yogonet.com/international/noticias/2024/11/20/85934-brazils-consumer-secretariat-orders-ban-on-gambling-bonuses-and-ads-targeting-minors
