Brazil propose tighter regulations on online sports betting, new legislative package targets advertising limits

A group of Brazilian lawmakers has introduced a set of legislative proposals aimed at tightening regulations surrounding online sports betting, commonly referred to in Brazil as “Bets.” The initiative includes four separate bills and a recommendation to the Ministry of Health, with the goal of protecting vulnerable individuals, limiting advertising, reducing conflicts of interest, and combating gambling addiction.

The proposals were announced by six federal deputies, Duda Salabert, Camila Jara, Dorinaldo Malafaia, Duarte Jr., Tabata Amaral, and Pedro Campos, along with Senator Alessandro Vieira. The move comes as the subject of sports betting continues to draw national attention, including ongoing investigations by a Parliamentary Commission of Inquiry (CPI) in the Federal Senate. 

This week, the CPI heard from social media influencers Virgínia Fonseca and Rico Melquiades regarding their involvement in betting-related promotions.

In a joint statement, the legislators stressed that the National Congress must take a “firm and preventive stance” to regulate the betting industry responsibly. They talked about the importance of safeguarding mental health and protecting children, adolescents, and other vulnerable groups from the risks associated with gambling.

One of the proposed bills seeks to impose strict restrictions on betting activity for certain at-risk individuals. These include people enrolled in CadÚnico (Brazil’s federal registry for low-income families), individuals listed on credit protection registries, business owners involved in bankruptcy or judicial recovery proceedings, persons with court-imposed suspensions, and those facing precarious legal situations. 

Under the bill, such individuals could face capped monthly betting transfers or even a total ban on participation.

Another bill targets the advertising of betting platforms. It proposes a ban on all forms of promotional content related to betting, whether for products, services, or gambling activities. Exceptions would apply to on-site advertisements in betting establishments, provided these include visible warnings about the risks of gambling and bar any marketing to individuals under 18.

A third bill introduces a compulsory savings mechanism. Under this measure, betting operators would be required to automatically divert 25% of each user’s deposited funds into a personal savings account held in the user’s name. Lawmakers say the intention is to foster a savings habit and reduce financial harm from excessive gambling. The provision is described as an educational initiative rather than a punitive one.

A fourth proposal aims to prevent conflicts of interest by barring individuals in certain government positions from holding stakes in betting companies. This includes people in management, advisory, or oversight roles within federal agencies, as well as executives of companies partially funded by public money. 

Lawmakers say the rule is designed to prevent misuse of insider information, favoritism, or undue influence over the betting sector’s regulation and licensing processes.

In addition to the legislative measures, the group submitted a recommendation to the Ministry of Health. It calls for the development of specialized programs to train healthcare professionals in Brazil’s Unified Health System (SUS) to identify and treat gambling addiction. 

The recommendation also encourages partnerships with local governments to improve access to care for individuals suffering from betting-related mental health issues.