Brazil Approves Betting Ad Restrictions Amid Legal Market Concerns

Brazil’s Senate has passed a controversial bill that places new limits on gambling advertisements. Bill 2,985/2023, approved under urgency, aims to regulate the booming sports betting sector. The legislation restricts when and where ads can appear and bans celebrity endorsements. Legal operators now warn that such strict rules could harm the regulated market and empower illegal platforms.

Originally pitched as a full advertising ban, the bill was softened by Senator Carlos Portinho. The final version permits limited sponsorships and narrowly timed broadcasts. Still, the restrictions are significant. Gambling ads are now banned during live sports, and only retired athletes may endorse brands—with a minimum five-year retirement period.

Industry and Football Clubs Sound the Alarm

Many legal operators and stakeholders believe the restrictions threaten the integrity of Brazil’s regulated gambling market. Udo Seckelmann, a gaming law expert, said the proposal could backfire. He pointed to Brazil’s Law No. 14.790/2023, which supports responsible gaming, noting that communication is vital for public awareness.

The Brazilian Institute for Responsible Gaming (IBJR) added that legal advertising helps inform players about safe platforms. Without it, consumers might shift to unregulated sites that lack oversight. Football clubs echoed these concerns, warning the bill could strip away crucial sponsorship income.

Top-tier football clubs projected losses of over BRL 1.6 billion (USD 281 million) if the ad rules are enforced. Smaller clubs may not survive the financial hit. The new ban on static stadium signage and team sponsorships could disrupt existing long-term contracts, triggering legal and operational challenges.

Global Lessons and the Road Ahead

Brazil’s new rules resemble Italy’s 2018 Decreto Dignità, which banned gambling ads but failed to curb problem betting. Instead, illegal betting flourished. Analysts worry Brazil could face the same outcome. Despite good intentions, the law might weaken the legal industry and help black-market operators gain ground.

The approved bill now moves to Brazil’s Chamber of Deputies for final consideration. If it becomes law, it will further shape Brazil’s evolving online gambling framework. The challenge now lies in finding the right balance—strong consumer protection without stifling the legal market. The coming months will determine if Brazil’s strategy pays off or creates new problems.