Brazil: Pelotas Restricts Betting Advertising in Municipal Public Spaces

Brazil.- 15 September 2026 | www.zonadeazar.com Pelotas, in the Brazilian state of Rio Grande do Sul, has joined the growing number of municipalities imposing local restrictions on betting advertising.

The city has enacted legislation preventing fixed-odds betting operators from using municipal public assets and facilities to display their brands, promote gambling services or carry out commercial activations.

The law was sanctioned on 3 September and will take effect 90 days after publication.

Scope of the Restriction

The prohibition specifically applies to property and facilities controlled by the municipal government.

These include:

• Public buildings.
• Squares.
• Parks.
• Municipal schools.
• Health facilities.
• Transport terminals.
• Other municipal public assets.

Physical and Digital Advertising

The law covers a broad range of advertising formats.

Restricted material includes:

• Physical advertising.
• Electronic advertising.
• Digital advertising installed on public property.
• Panels.
• Billboards.
• Banners.
• Totems.
• Screens.
• Other commercial display formats.

Branding Is Also Covered

The rules extend beyond conventional advertisements.

Municipal public property cannot be used to display betting brands, logos, slogans or other elements intended to commercially promote gambling activity.

Sponsored Events Are Included

The law also restricts events sponsored by betting operators when they take place on municipal property and involve commercial brand exposure.

The restriction covers the display of:

• Logos.
• Slogans.
• Brand identities.
• Promotional material.

Journalism and Education Excluded

Purely journalistic and educational content is not covered.

This allows public authorities to continue discussing gambling in information and prevention campaigns.

Concessions Are Covered

The restriction remains applicable where advertising rights over public assets are managed through:

• Concessions.
• Permissions.
• Authorisations.
• Use agreements.
• Similar arrangements.

This prevents betting advertising from appearing on municipal assets merely because commercial management has been transferred to a third party.

Municipal Proposal

The measure was introduced by councillor César Brisolara of the PSB.

Consumer protection, public health and local public interest were cited among its objectives.

90-Day Transition

The law does not take effect immediately.

A 90-day implementation period provides time for contracts, advertising assets and commercial arrangements to be reviewed.

Not a City-Wide Advertising Ban

A crucial distinction is that Pelotas has not prohibited all betting advertising within the municipality.

The law is limited to municipal public assets and facilities.

Private Advertising Remains Outside the Measure

The municipal legislation does not directly prohibit advertising in:

• Private establishments.
• Private commercial property.
• Television.
• Internet.
• Digital media generally.

Other federal, state or local rules may apply separately.

Educational Campaigns

The legislation also provides for municipal educational initiatives focusing on:

• Gambling addiction prevention.
• Responsible consumption.
• Social risks.
• Economic risks.
• Public awareness.

Public Health Rationale

Public health appears explicitly among the stated policy goals.

This reflects a growing trend among Brazilian authorities to approach betting as more than a purely commercial or licensing issue.

Consumer Protection

Consumer protection is another key justification.

Advertising exposure in locations controlled directly by public authorities has become an increasingly prominent policy concern.

Public Spaces as Protected Environments

The underlying principle is to reduce betting marketing in spaces where the government itself controls the commercial environment.

Schools and health facilities are particularly sensitive under this approach.

Rio de Janeiro as Inspiration

Pelotas drew inspiration from measures previously adopted in Rio de Janeiro.

The city of Rio helped trigger a wider municipal movement towards local betting-advertising restrictions during 2026.

Municipal Movement Expands

Several cities have moved towards similar policies.

The trend demonstrates that gambling advertising is increasingly being addressed at local-government level.

Different Municipal Models

The policies are not identical.

Some municipalities focus only on public property.

Others have gone further into outdoor advertising or privately operated assets requiring municipal permission.

Pelotas Uses a Limited Model

Pelotas has adopted a relatively clearly defined approach.

It is restricting advertising primarily where the municipality exercises direct legal control.

Rio Grande do Sul Context

The city measure sits within an already complex regulatory environment in Rio Grande do Sul.

The state adopted broader gambling-advertising legislation earlier in 2026.

State Law No. 16,508/2026

State Law No. 16,508/2026, sanctioned in April, introduced wider requirements for betting advertising.

These include risk warnings.

Advertising Hours

The state framework restricts certain gambling advertising across:

• Television.
• Radio.
• Streaming.
• Video on demand.

Advertising is limited to the period between 9pm and 6am.

Sports Venues

Rio Grande do Sul also imposed restrictions covering:

• Stadiums.
• Sports halls.
• Sports facilities.
• Public entertainment venues.

Sponsorship Exceptions

The state rules nevertheless include exemptions.

Official sponsors, naming-rights partners and official sponsors of participating teams may receive different treatment.

Live Broadcast Incentives

The state law also restricts promotion of:

• Bonuses.
• Odds.
• Winning incentives.

The rules apply during live broadcasts directed at Rio Grande do Sul.

Protection of Minors

Advertising close to schools and locations frequented by minors is also restricted.

State Law Faces Court Challenge

The wider Rio Grande do Sul framework is currently being challenged before Brazil‘s Supreme Federal Court.

The Associação Nacional de Jogos e Loterias, ANJL, filed a Direct Action of Unconstitutionality.

Jurisdictional Debate

The underlying legal question is how far states and municipalities can impose additional advertising rules on an industry primarily regulated at federal level.

Industry bodies argue that some local measures may intrude on federal legislative authority.

No Supreme Court Decision Yet

The Rio Grande do Sul case is being handled by Justice Cármen Lúcia.

No hearing date has yet been announced.

Legal Uncertainty

The result is a regulatory environment in which further local restrictions may be adopted while constitutional questions remain unresolved.

Operator Impact

For betting operators, the proliferation of subnational rules makes marketing increasingly localised.

A campaign permitted in one city may not be permitted in another.

Agency Impact

Advertising agencies and activation companies will also need to assess the legal status of each venue.

The distinction between municipal property and private property may determine whether a campaign can proceed.

Sponsorship Under Scrutiny

Municipally hosted events become particularly sensitive.

Even when an operator is federally licensed, use of a public venue may trigger local restrictions.

Existing Contracts

The 90-day transition gives companies time to review relevant contracts.

Operators and concessionaires will need to identify any affected advertising inventory.

Institutional Communication

The law also creates a clear distinction between commercial advertising and educational information.

This is relevant for future municipal prevention programmes.

Gambling Harm Moves Into Local Policy

The authorisation for ludopathy-prevention campaigns demonstrates how gambling issues are increasingly being incorporated into local public-health strategies.

Regulation from Multiple Levels

Brazil has a federal framework governing fixed-odds betting.

However, advertising and use of public property are generating additional responses from states and municipalities.

Regulatory Fragmentation

That overlap can increase compliance complexity substantially.

A single national campaign may require different treatment across cities and states.

Territorial Compliance

Betting marketing is therefore becoming increasingly geography-dependent.

Compliance involves not only knowing whether an operator holds a federal licence, but also where and how its brand can be promoted.

Industry Context

Brazil is going through a broader reassessment of betting’s presence in public life.

While the federal regulated market continues operating, local authorities are establishing additional controls over gambling visibility.

Pelotas is now part of that wider movement, focusing specifically on public property managed by the municipal government.

Next Steps and Impact

The Pelotas law will become effective 90 days after publication.

Once implemented, betting operators will no longer be able to use municipal buildings, squares, parks, schools, health facilities, transport terminals and other public assets to display advertising or conduct promotional activities.

Sponsored events in those locations will also be restricted where betting brands, logos or slogans are commercially displayed.

The law does not constitute a blanket prohibition of betting advertising throughout the city and does not directly cover television, internet or private commercial property.

For operators and agencies, the immediate task will be to review advertising inventory, sponsorship agreements and activation plans connected with municipal infrastructure.

The measure reinforces a wider Brazilian trend: alongside federal debate over gambling advertising, states and municipalities are increasingly developing their own controls over the sector’s commercial visibility.

Editó: @fonta