This new year of 2024 begins with significant developments in the betting market, which, since its legalization in 2018, has been experiencing pronounced growth. Data indicates that, in 2023 alone, the sector invested over R$ 3.5 billion solely in Brazilian football (between sponsorships and advertisements), and there was a 140% increase in the number of companies engaging in this activity.
Furthermore, just between January and July 2023, Brazilians would have spent over R$ 30 billion on overseas betting sites – an increase of 13 times compared to the same period in 2022.
The exponential growth of this sector has accompanied many discussions regarding its regulation – especially regarding advertising and marketing actions, which progressed slowly.
Law 13,756/2018, which legalized the sector, only established that advertising and marketing actions should be guided by "best practices of social responsibility." But what would these "best practices" be?
In turn, Provisional Measure (PM) 1,182/2023 limited itself to adding the need to promote awareness actions for bettors and prevent pathological gambling disorder (gambling addiction), and determined that the regulation of advertising and marketing actions would be the responsibility of the Ministry of Finance and Conar – National Council for Self-Regulation Advertising. Such measures were implemented only at the end of 2023, further supplemented by the provisions of the recently sanctioned Law 14,790/2023, popularly known as the Betting Law.
Despite being independent texts, there are many points of connection regarding the regulation of advertising and marketing actions, in order to materialize the aforementioned "best practices." In this sense, four pillars can be identified:
Each pillar has its own specificities, briefly outlined below, without intending to exhaust the topic.
The pillar of advertising identification highlights the need for advertising actions to be easily identifiable and recognizable in the market, in order to clarify their commercial nature, distinct from editorial content.
Thus, the advertising nature of the communication piece must be readily recognizable by the bettor, including, explicitly, the expressions "advertising notice," "advertisement," or similar terms.
The pillar of truthfulness of information aims to represent the necessary truthful presentation of the service offered. In this sense, the advertising piece should not present misleading or unrealistic information regarding the probability of winnings, or the level of risk involved, nor suggest that an increase in the number of bets represents an increase in the possibility of winning.
Likewise, the advertising piece cannot induce the bettor to understand that the bet will lead to enrichment, constitute a form of income, or lead the bettor to believe that they can control the results. Additionally, the advertiser must indicate the amounts involved in the national currency, as well as information on any applicable taxes and other fees.
The pillar of protection of vulnerable individuals deals especially with the protection of children and adolescents, who cannot participate in advertising pieces or be the target audience of the advertiser. Therefore, the pieces must indicate that the activity is prohibited for minors, and refrain from portraying betting activity as a sign of maturity.
As a consequence of these concepts, advertising pieces cannot be aired in schools and universities, nor can they use language or symbols belonging to the child and adolescent universe or be broadcasted on channels or time slots aimed at minors.
Finally, the pillar of social responsibility and responsible gambling represents measures to prevent gambling addiction and indebtedness. Consequently, advertising pieces cannot associate betting activity with success (understood broadly, in social, professional, or financial contexts, involving, for example, admiration from others, superiority, attractiveness, or signs of courage or virtue), and must combat excessive, exaggerated, or irresponsible betting. Similarly, advertising pieces cannot associate this activity with problem-solving (personal, professional, or financial).
It is worth noting that the operator of the games must have internal control mechanisms and systems that allow the bettor to establish, for example, a daily limit on playing time or betting and a maximum loss limit.
The connection between the pillars converges on the need to include, in advertising pieces, warning clauses about the harms of gambling, in a legible, conspicuous, and prominent manner. The regulation issued by Conar suggests adopting one of 10 suggestions, such as "gamble responsibly," "sports betting: practice safe gambling," and "know when to bet and when to stop."
Now, the framework of rules for advertising and marketing actions in the betting market is more evident, and there is a visible structuring in search of "best practices of social responsibility." Does this mean the issue is closed? Certainly not – quite the contrary. The meaning of "best practices of social responsibility" will evolve alongside society, so changes (and, perhaps, improvements) may occur over the next few years. This story is just beginning.
Julia Pereira Klarmann
Postgraduate in Business Law from FGV-Law, partner at Souto, Correa, Cesa, Lummertz & Amaral Advogados
Rodrigo Ustárroz Cantali
Attorney in the Consumer and Product Liability area at Souto Correa Advogados
