Senators propose tough new regulations for online gambling in Brazil
Six months on from the launch of regulated online gambling, a senate inquiry has proposed new rules for advertising and marketing.
Brazil.- The Senate’s Inquiry Commission (CPI) on online gambling has proposed a series of new measures following its hearings on the new market for regulated online sports betting in Brazil. Six months on from the launch of the market at the start of this year, senators have made 16 recommendations, including proposals for tighter restrictions on advertising and marketing.
The CPI proposes that the government explicitly ban online casino-style games, arguing that they have “exclusively harmful characteristics.” It also proposes a series of new advertising and marketing restrictions, including a ban on gambling ads during prime-time television and restrictions on welcome bonuses and “deceptive” promotional offers. It also calls for mandatory age and financial eligibility checks for players.
The CPI has also called for the financial intelligence unit COAF and the federal tax authority Receita Federal to investigate the role of influencers in promoting gambling. This recommendation was sparked by complaints that influencers were reinforcing irresponsible gambling behaviors and that some affiliate agreements tied influencer earnings to user losses.
Meanwhile, the commission proposes that the manipulation of sports events be formally criminalised under federal law. This would be overseen by a new National Sports Integrity Authority, which would monitor the automated systems used by betting platforms. The CPI also suggests the creation of a regulatory framework for technical audits to promote transparency in how odds are set as well as broader promotional practices.
The inquiry has also recommended the creation of data-sharing protocols between the COAF and gambling operators, alongside mandatory financial audits to monitor for illicit financial transactions.
Other measures recommended include integrating gambling addiction awareness and financial literacy into school programmes and launching national prevention campaigns supported by NGOs, and responsible influencers.
The CPI was established in January just weeks after the launch of regulated online sports betting in Brazil. Led by senators Soraya Thronicke (Podemos–MS) and Hiran Gonçalves (PP–RR), it was tasked with reviewing the financial risks and social impact of the sector’s regulation. In a series of hearings, it took testimony from gambling operators and other public and private stakeholders on topics such as fraud, money laundering, advertising and consumer protections.
The report’s recommendations will now require a vote in the Senate. Gonçalves has indicated that this will be delayed until next week to allow more times for senators to review the findings.
Meanwhile, finance minister Fernando Haddad has signed off on a provisional measure to increase gambling tax in Brazil from 12 to 18 per cent of gross gaming revenue (GGR). The measure was adopted as the most politically acceptable option to balance the federal budget. industry groups that warned that the move means the effective tax burden could surpass 50 per cent.
The new rate takes immediate effect but will need Congressional approval within 120 days to remain in force.
