Industry Pushbacks in Brazil As Senate Approves Restrictions

São Paulo – June 2, 2025 — The Brazilian Senate has approved a bill imposing new restrictions on gambling advertising, drawing sharp criticism from industry stakeholders who warn the measures could strengthen the black market and undercut legal operators.

Bill 2,985/2023, advanced urgently to the Senate Plenary in the absence of a Communication and Digital Law Committee, passed with amendments that softened—but did not eliminate—the proposed restrictions. Key changes include a partial allowance for advertising during designated time slots and limited sponsorships for sports teams and venues.

Senator Carlos Portinho, who introduced the amendments, defended the legislation as a necessary check on what he described as an unregulated and increasingly harmful betting environment. “One year after this law was passed, our society is sick,” Portinho said during the Senate session. “Football clubs are addicted to betting. Communication companies are addicted to betting, to advertising, to the money they receive from betting.”

Industry Reaction

Despite the softened language, industry figures and legal experts argue the bill still threatens the viability of Brazil’s nascent regulated betting market. Udo Seckelmann, head of gambling and crypto at law firm Bichara e Motta Advogados, called the initial version of the bill “disproportionate” and emphasized that its restrictions remain problematic even in revised form.

“The initial proposal for a complete ban on gambling advertising was disconnected from the regulatory reality established by Law No 14.790/2023,” said Seckelmann. “A blanket ban would have jeopardised the development of the legal market, driven bettors toward unregulated platforms and significantly harmed stakeholders.”

Seckelmann added that international precedent offers a cautionary tale. He cited Italy’s 2018 Decreto Dignità, which imposed a comprehensive ad ban but failed to reduce problem gambling while reportedly aiding black market growth. Brazilian football clubs, major beneficiaries of betting sponsorships, have been among the most vocal critics. In a joint statement, several top-tier clubs warned the bill could cost the sports sector up to BRL 1.6 billion (USD 281 million) in lost revenue.

“The prohibition of brand exposure from operators on static signage in sporting venues removes crucial revenue streams from clubs,” the statement said. “The financial losses will be significant even for major clubs,” it added, noting the impact could be existential for smaller teams. The statement also raised the issue of potential legal liabilities, as clubs would be forced to renegotiate or terminate long-term contracts already signed with betting operators.

Under the amended bill, the following measures will apply:

• Time Limits: Betting ads on TV and online media are allowed only from 7:30 p.m. to midnight; radio ads are restricted to 9:00–11:00 a.m. and 5:00–7:30 p.m.
• Endorsements: Use of celebrities, athletes, and influencers is banned, except for retired athletes who have been out of professional sports for at least five years.
• Stadium Sponsorships: Advertising in sports venues is restricted but permitted for one official sponsor per team, including on uniforms.
• Live Event Restrictions: Ads during live broadcasts of sports events are prohibited.
• Calls for Balance

The Brazilian Institute for Responsible Gaming (IBJR) expressed concern that the restrictions would weaken the legal sector’s ability to communicate with consumers. In a statement, the organization argued that regulated advertising helps steer users toward safer platforms and promotes responsible gambling practices.

“The proposal weakens communication between legalised betting companies and bettors, compromising the sustainability of a regulated sector,” the IBJR stated.

The proposal weakens communication between legalised betting companies and bettors, compromising the sustainability of a regulated sector committed to responsible gaming.

Outlook

With Senate approval secured, the bill is now positioned to reshape how betting companies operate and advertise in Brazil. However, the debate over the bill has exposed deeper tensions between public health concerns, regulatory goals, and economic interests in the country's booming sports and gaming industries.

While the amended law seeks to impose structure on a rapidly expanding sector, opponents argue it may inadvertently create conditions for the illegal market to thrive—an outcome lawmakers had hoped to avoid.