Zona de Azar Brazil – Brazil: Senator Advocates Ban on Sports Betting Advertising

Brazil, December 11, 2024 www.zonadeazar.com Senator Damares Alves (Republicanos-DF) defended in a report the prohibition of advertising and sponsorships by sports betting operators.

Damares’s report is the result of merging two projects, one by Randolfe Rodrigues (PT-AP) and another by Jorge Kajuru (PSB-GO), both focused on restricting the operations of betting companies. As the rapporteur, her final text will be submitted for a Senate vote, expected to take place next week with a decisive outcome, according to Folha de S. Paulo.

Senator Randolfe’s proposal aims to ban all forms of betting company advertising, including sponsorships for clubs and sports events. Kajuru’s proposal seeks to prohibit operators from offering bets on election results, a measure already formalized in September during municipal elections by the Superior Electoral Court (TSE). The senator wants to extend this ban to both state and federal elections.

Damares highlighted that betting revenues in Brazil surged from R$ 500 million in 2018 to R$ 240 billion in 2024. Despite this significant volume, she noted that approximately R$ 55 billion is sent abroad annually as profits, often to tax havens. She argued that this outflow represents a “leakage of resources” from Brazil’s economy, unlike sectors such as soybean exports, which generate foreign exchange and jobs domestically.

If approved, the project will move directly to the Chamber of Deputies after passing through two committees: the Commission on Communication and Digital Law (CCDD) and the Commission on Constitution, Justice, and Citizenship (CCJ). Lawmakers involved believe the text is likely to gain approval, at least in the CCDD.

The senator justified the ban by citing studies linking betting to financial losses and mental health issues. A survey by the Locomotiva Institute revealed that 86% of bettors are in debt, and 64% have negative credit scores. Additionally, half of those who started betting did so in 2024, which, according to Damares, demonstrates the impact of advertising in this market.

The report proposes a series of strict restrictions, including:

• A ban on advertising, marketing, and communication promoting betting, whether by companies or digital influencers.
• Prohibition of sponsorships for sports, cultural, or any other events.
• Blocking indirect or subliminal betting-related advertisements.
• Prohibition of pre-installing betting apps on electronic devices manufactured in Brazil.

Penalties for non-compliance include warnings, fines ranging from R$ 5,000 to R$ 10 million, temporary suspension, and revocation of authorization to operate betting activities in Brazil.

Damares emphasized the need to protect the population from the negative impacts of betting and criticized the dependency of sports and media on funding from this sector. The final report will serve as a starting point for a broader debate on the future of sports betting in the country.

Editor: @_fonta www.zonadeazar.com