Brazil Advances Legislation to Regulate Gambling Advertising

In an effort to combat the negative impact of unlicensed gambling on the younger population, Brazil's Chamber of Deputies’ Communication Committee has approved bill 3915/2023. This legislation specifically targets influencers and digital celebrities, restricting their promotion of unlicensed gambling products and companies. Lawmakers believe this measure will safeguard younger players and reduce the influence of the black market on the youth, potentially lowering problem gambling rates.

The proposed bill outlines stringent sanctions for entities violating its rules. Digital influencers and overseas companies targeting the local market are prohibited from promoting unregulated gambling on various platforms, including social media, video-sharing platforms, and livestreaming services. The bill also requires major digital media platforms to collaborate with local authorities to report and remove inappropriate content.

Under the provisions of bill 3915/2023, companies breaching promotion restrictions risk fines of up to 2% of their revenue, with a maximum cap of $10.2 million in USD. Online influencers may face a permanent ban for non-compliance.

Having received approval from the Chamber of Deputies’ Communication Committee, the bill now awaits consideration by the Finance and Taxation Commission. If given the green light by both entities, it will progress to the Constitution and Justice Commission for further evaluation and a plenary vote.

While Brazil grapples with disagreements and debates over ambitious amendments to sports betting legislation, the process faces delays. This uncertainty poses challenges for companies like Entain, which recently had to shut down unregulated operations in response to the slower pace of legislation in Brazil. The country's regulatory timeline may impact Entain's operations, raising concerns about the postponement of its exit date.