Brazil has recently implemented a ban on the advertising of all customer incentives for gambling companies, including bonuses and sign-up offers. SENACON, the National Consumer Secretariat of Brazil, issued the order, which excludes all bonuses from existing gambling regulations. The regulator also required the suspension of any gambling activities targeted at children or adolescents. Companies found in breach of the order will face a daily fine of BRL50,000 ($8,659).
Operators have been given ten days to submit a transparency report outlining the measures taken to comply with the order. The move comes as Brazil prepares to launch a new regulated gambling market on January 1, 2025, aimed at increasing tax revenues and eliminating unlicensed operators from the country. However, concerns have been raised about the surge in money spent on gambling sites, addiction issues among Brazilians, and the potential economic impact.
Renato Meirelles, head of the Locomotivo Institute, expressed worries that money that would have supported local businesses is now being used for gambling instead. Gabriel Galipolo, the incoming governor of Brazil’s central bank, highlighted the disconnect between income growth and savings/consumption, suggesting that money may be leaking into gambling activities.
The ban on advertising gambling bonuses is part of a broader crackdown ahead of the legal market launch. The Brazilian Supreme Court recently held a hearing to address concerns about the market’s constitutionality and prohibited gambling with Bolsa Familia welfare checks. Additionally, the Brazilian telecoms agency Anatel has blocked over 5,000 betting sites in the country.
SENACON emphasized the importance of protecting vulnerable individuals, especially children and adolescents, in consumer relationships. The new measures aim to ensure the safety of these groups amidst the changes in the gambling landscape in Brazil.