Brazil Backs Betting Ad Curbs Amid Black Market Fears

Brasília — Brazil’s Senate has passed a new bill introducing sweeping restrictions on gambling advertisements, sparking concern among industry stakeholders who warn the move could inadvertently benefit illegal betting operations.

On Wednesday, the Sports Commission approved Bill 2,985/2023, which includes a series of advertising curbs aimed at regulating the country’s rapidly growing betting sector. The bill bypassed the still-unformed Communication and Digital Law Committee and went directly to a Senate plenary vote, where it was passed under urgency.

While the original proposal sought a total advertising ban, Senator Carlos Portinho amended the bill to allow limited sponsorships and restricted advertising time slots. Still, the revised bill imposes significant constraints, including a ban on celebrity endorsements and advertising during live sports broadcasts. It also sets narrow windows for ads on TV, radio, and online platforms.
Legal Market Advocates Warn of Unintended Consequences

Legal operators and regulatory experts have raised alarms about the legislation’s potential to undermine the regulated market and empower unlicensed operators.

Udo Seckelmann, head of gambling and crypto at Brazilian law firm Bichara e Motta Advogados, said the initial proposal for a blanket ban was “disproportionate” and misaligned with existing gambling legislation under Law No. 14.790/2023. “A blanket ban would have jeopardised the development of the legal market, driven bettors toward unregulated platforms and significantly harmed stakeholders such as sports entities, media outlets and marketing agencies,” Seckelmann told iGB.

The Brazilian Institute for Responsible Gaming (IBJR) echoed this view, saying the bill’s “severe restrictions” compromise the regulated sector’s ability to educate consumers about legal betting options. “Legal advertisements inform the public and help citizens to identify regulated platforms that are providing a safer gaming environment,” the IBJR said in a public statement. “The proposal weakens communication between legalised betting companies and bettors.”

Football Clubs Warn of Financial Fallout

Opposition has also come from Brazil’s football clubs, which stand to lose significant sponsorship revenue. In a joint statement to Games Magazine Brasil, top-tier clubs described the bill as a “prohibition disguised as a limitation,” estimating collective losses of BRL 1.6 billion (approximately USD 281 million).

Clubs warned the ban on static in-stadium signage and other forms of brand exposure would strip teams of vital income streams. Smaller clubs, in particular, could face existential threats, they said. Additionally, teams that have already signed long-term contracts with betting sponsors may face legal and financial complications due to the abrupt policy shift.

“The financial losses will be significant even for major clubs,” the statement read. “For smaller clubs, the survival of the institution itself may be compromised.”

Lessons from Abroad

Seckelmann pointed to international examples, such as Italy’s 2018 Decreto Dignità, which imposed a similar ban on gambling ads. According to government data, the measure failed to reduce problem gambling rates but did lead to a surge in illegal betting. “International experience shows that such restrictions often fail to deliver the intended public health outcomes,” he said. “Instead, they end up harming regulated operators while illegal betting continues to thrive.”

Under the amended legislation, gambling ads will be permitted only between 7:30 p.m. and midnight on television and subscription-based media. Radio ads are allowed in two daily windows: 9:00–11:00 a.m. and 5:00–7:30 p.m. Celebrity endorsements, including the use of influencers and athletes, are largely banned. An exception is made for former athletes who have been retired for at least five years.

Sports venue advertising is generally prohibited, but teams and stadiums may feature branding from a single betting operator if it is an official sponsor. The same limit applies to team kits. Senator Portinho defended the restrictions, citing what he described as the betting industry’s failure to self-regulate.

A blanket ban would have jeopardised the development of the legal market, driven bettors toward unregulated platforms and significantly harmed stakeholders such as sports entities, media outlets and marketing agencies.

Conclusion

“One year after this law was passed, our society is sick—it is completely addicted to betting,” Portinho said during debate. “Football clubs are addicted to betting. Communication companies are addicted to advertising and the money they receive from betting.”
What’s Next?

With Senate approval secured, the bill is now expected to move to the Chamber of Deputies for consideration. If enacted into law, the new rules would add to Brazil’s broader regulatory framework for online gambling, which has been evolving rapidly in recent years.

Industry players warn that the balance between regulation and overregulation is delicate. As Brazil attempts to control gambling-related harms, many in the sector stress that overly stringent ad restrictions could drive consumers away from the legal market—potentially undoing progress made in formalizing the industry.