The Brazilian government has tightened regulations on betting advertisements, as announced in the official DOU gazette on July 10. Two new orders were issued: one from the Secretariat for Prizes and Betting of the Ministry of Finance (SPA) and an interdepartmental order from the Ministry of Finance, the Ministry of Justice, and the Secretariat for Social Communications.
Key highlights of the new regulations include mandatory warnings and content restrictions:
Mandatory Warnings (Effective July 17):
- Each advertisement must include one of three phrases: 'The Ministry of Finance warns: betting can cause addiction,' 'The Ministry of Finance warns: you lose money when betting,' or 'The Ministry of Finance warns: betting is not an investment.'
- The warning must be displayed horizontally, clearly, and legibly, occupying at least 10% of the advertisement's area.
Content Restrictions (Effective July 10):
- Promotion of operators without SPA authorization.
- Expert analysis, predictions, and betting advice within editorial content that encourages betting.
- Portraying betting as a source of income, investment, or a way to recover losses.
- Advertising easy wins and betting as a sign of personal or financial success, including through influencers.
- Encouraging immediate betting and excessive gambling.
- False information about winning probabilities, including claims about the influence of player skills and experience.
- Sexualized imagery, discriminatory messages, and insults to the country's cultural traditions.
- Any advertisements targeting minors.
Responsibilities for Platforms and Advertisers:
- Before entering into advertising contracts, platforms must verify the advertiser's SPA authorization.
- They must store the advertiser's name, tax number, and authorization number and disclose them in their interface.
- Social media must block betting advertisements from accounts belonging to minors.
- App stores and operating systems must restrict access to betting apps for underage accounts without age verification.
Sanctions:
- Operators may face fines of up to 20% of their turnover.
- Authorization can be suspended for up to 180 days, with repeated violations leading to cancellation.
- Advertisers may incur fines of up to $2.73 million under consumer protection laws.
- For influencer violations, the operator is responsible, and the content must be removed.
These new regulations expand the responsibility for advertising beyond just operators, now encompassing the entire distribution chain, including media, influencers, social networks, and app stores, which must independently verify advertisers' authorizations.