Senacon Demands Immediate Ban on Betting Bonus Ads and Gambling Promotions Targeting Minors

The National Consumer Secretariat (Senacon), Brazil’s federal agency for consumer protection, has issued a preliminary directive calling for the immediate suspension of all advertising related to betting bonuses and any betting promotions directed at minors. The directive, announced on 19 November under Order No. 2,344/2024, urges swift implementation of these restrictions as the country prepares for the official launch of its regulated online betting market on 1 January 2025.

This measure is the latest in a series of regulatory actions aimed at tightening oversight of the gambling sector. Last week, a two-day Supreme Court hearing was held to assess the constitutionality of the betting law passed in December 2023. Following the hearing, the court ruled that funds from the Bolsa Familia social welfare programme cannot be used for gambling purposes.

The court’s ruling is supported by findings from a Central Bank study conducted in July, which revealed that 20% of Bolsa Familia funds allocated in August were spent on online gambling. Additional surveys highlighted that many individuals are diverting money intended for essential needs such as medicine, food, and clothing towards gambling, raising serious concerns about the social impact of betting activities.

Under the new order, all advertising of betting bonuses must cease, covering both igaming and sports betting promotions, regardless of whether the ads are solely intended to publicize or promote betting. Advertisements for fixed-odds betting aimed at children and adolescents are also explicitly banned. The restrictions apply to operators listed on the Secretariat of Prizes and Bets’ (SPA) registry of approved companies, which are authorized to operate during the transitional period from 1 October to 31 December 2024.

Operators failing to comply with the new rules will face a daily fine of BRL 50,000 (approximately £6,863/€8,210/$8,671) until full compliance is achieved. The order also mandates that a report analyzing the implementation of these measures be submitted within 10 days of the directive’s issuance.

Senacon has emphasized the need to protect vulnerable populations, particularly children and adolescents, stating that the measures aim to ensure “the safety of vulnerable people in the consumer relationship, with special attention to hyper-vulnerable people such as children and adolescents.”

As Brazil approaches the launch of its legal online betting market, these measures reflect the government’s determination to address the risks associated with gambling and safeguard at-risk groups from exploitation.

By fLEXI tEAM