In recent years, sports betting houses have experienced an exponential growth in Brazil, driven by the growing popularity of the sporting universe, especially football. This phenomenon attracted the government’s prompt attention, leading it to direct its efforts towards regulating sports betting advertising.
According to a survey published in 2023 by Datahub, sports betting grew by more than 360% in Brazil. Between the years 2020 and 2022, the number of companies in this sector increased from 51 to 239 in the country.
This “boom” directly reflects on the nation’s most popular sport: football. Currently, more than 95% of Serie A and B clubs are sponsored by sport betting sites. According to Estadão, companies in the sector invest approximately R$3.5 billion in this modality, through sponsorships of clubs, players, specific competitions and even in support of organised fan groups.
PL 3626/2023
As previously mentioned, the significant growth of sports betting houses has generated the need for a more rigorous approach regarding the supervision and regulation of this sector.
Signifying the implementation of specific guidelines aimed at regulation of sports betting and the functioning of these platforms in national territory.
Given this scenario, on December 30, 2023, the Official Gazette of Union published the sanction of President Luiz Inácio Lula da Silva, a bill regulating betting activities of companies in the Brazilian market.
With the implementation of betting regulation, the federal government seeks to increase revenue through taxation of sums invested in betting and its prizes. Betting companies are now required to pay a 12% fee on revenue to the government.
In turn, bettors will be responsible for a 15% tax on the value of prizes received. Although the text approved by the chamber initially exempted prizes with a value of less than R$2,112, this section was vetoed during presidential sanction.
What are the new advertising regulations for sports betting houses?
Along with the presidential sanction, the National Council of Advertising Self-Regulation (CONAR) published the “Anexo X”, which establishes guidelines for sports betting advertisements.
The text is based on five principles:
General rule
Betting and gaming advertising must be socially responsible, avoiding appeals for pressure to take part in the game, encouragement of exaggeration, repetition and excessive or irresponsible gambling, due to the restricted and inappropriate nature of these products.
Principle of advertising identification
Sports betting advertising must be easily identifiable and evident to consumers. When disclosed by third parties, such as influencers, affiliates, “ambassadors” or partners, the advertising content must be clearly highlighted and distinguishable from editorial content.
Principle of veracity and information
Advertising must truthfully present the service offered and, if predictions are involved, they should avoid promises of guaranteed gains and results.
Principle of protection for children and adolescents
Betting advertisements will not include children and teenagers as participants or target audience. Based on this principle, advertisers and their agencies will take special precautions when developing their marketing and structure its advertising messages in the following ways:
* “all advertising must clearly contain an ‘18+’ symbol or warning ‘not for children under 18 years of age’”;
* “people who appear in advertisements for the segment, practicing bets, playing a significant or prominent role, must be and appear to be over 21 years of age”;
* “advertisements should never invite children and teenagers to play or suggest that they can play or place bets online or offline”;
Principles of social responsibility and responsible gaming
Sports betting advertisements must be directly related to promoting responsible gambling, therefore, encouraging excessive practice, or irresponsible or immoderate betting is prohibited, and one should also avoid instigating situations of uncontrolled or compulsive gambling.
In addition to the principles mentioned above, all sports betting advertisements must now include a standardized alert message according to the criteria mentioned in the “Anexo X”. The message can be any of the phrases that Conar suggests, such as:
1. Play with responsibility.
2. Betting is an activity with the risk of financial loss.
3. Betting can lead to the loss of money.
4. Chances are you’re about to lose.
What can a bookmaker do to achieve success in Brazil?
With the recent rules and legislation implemented, sports betting houses will need to adapt to the imposed changes and find legal means and concrete measures to continue promoting their products in a reliable and responsible manner, without this affecting the business.
The comfort and ease of betting and/or playing at any time makes companies in this sector naturally attractive to enthusiasts. However, it is necessary to act transparently in the face of possible risks and financial and psychological impacts of games.
The search for a strategy that combines attractive campaigns with transparency can be optimized by involving a public relations agency in Brazil. At Sherlock Communications, we specialize in communications strategy, we have the ability to develop impactful campaigns, maintaining the integrity and transparency necessary to meet new regulatory demands of the sports betting sector.
This way, sports betting houses can benefit from expertise in creating persuasive messages while ensuring compliance with both ethical and legal standards. This approach will effectively promote the products and will also contribute to building and maintaining a positive image in the market.
Additionally, Sherlock Communications can play a fundamental role in reputation management in Latin America, providing insights about public expectations and helping to formulate methods for mitigating potential risks, as well as ensuring a lasting and ethical presence in the scene of sports betting in Brazil.
Source: Helena Victoretti - Sherlock Communications
