A major move has been taken by the National Consumer Secretariat (SENACON) to protect vulnerable groups as Brazil gets ready to open its legal online betting industry on January 1, 2025. Order No. 2,344/2024, a new directive released by SENACON on November 20, 2024, attempts to limit advertising related to gaming and eliminate incentives intended to promote betting. This is a component of Brazil’s larger endeavor to successfully control the nascent gaming sector.
The main goal of SENACON’s mandate is to outlaw commercials that advertise gambling incentives such bonuses, awards, and advance payments. The ruling expressly forbids any marketing, promotions, or ads that provide bettors an edge before they place their wagers. This action is thought to be a means of stopping gaming operators from luring customers into possibly hazardous playing with alluring offers.
Additionally, SENACON has implemented a strict ban on advertising that targets minors, especially in the context of fixed-odds betting. In a bid to protect children and adolescents, the directive aims to eliminate gambling-related content from channels accessible to younger audiences. Operators who fail to comply with these measures will face daily fines of R$50,000 (approximately $2,762). Companies are also required to submit a transparency report within 10 days to confirm their adherence to the new regulations.
Wider Regulatory Efforts and Upcoming Licensing
This directive builds on previous efforts by the Ministry of Finance and the Secretariat of Prizes and Betting (SPA). In April 2024, SPA introduced Ordinance No. 615, which already prohibited welcome bonuses and other promotional incentives for gambling. The ordinance emphasized: “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 actions come amid growing concerns about gambling’s impact on Brazil’s most vulnerable. A recent study by the Central Bank revealed alarming trends, including the use of welfare funds from the Bolsa Família program for gambling. This prompted a ruling from Brazil’s Federal Supreme Court Justice Luiz Fux, who prohibited social welfare recipients from using funds for betting activities.
Regis Dudena, President of SPA, confirmed that the licensing process for operators is nearing completion, with the final list of qualified operators expected by December 2024. The licensing process includes a substantial concession fee and platform certification, which will be crucial for operators entering Brazil’s regulated market.
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