Last Wednesday, the Brazilian Federal Senate approved the Bill that establishes limitations on the dissemination of fixed-odds sports betting advertising.
While the concern regarding compulsive gambling is legitimate, the Bill’s approval has raised questions about the consequences of its accelerated passage and limited discussion.
The legislative proposal, which in its original version stipulated a complete ban on betting advertising, now defines specific periods for ad broadcasting, prohibits the participation of public figures, and introduces a series of other restrictions not contemplated in Law 14,790/2023.
However, the Bill’s approval process was rushed, lacking in-depth technical debate and disregarding the potential side effects of the measure. Below, we highlight the three main consequences that the Bill’s approval may entail:
1. Boosting the Illicit Market: By imposing severe restrictions on the advertising of legalized betting houses, the bill may, paradoxically, discourage the formalization of the sector. This weakens ethical competition and, contradictorily, boosts illegal operators, who will continue to operate without any oversight or limits. These clandestine platforms are precisely those that benefit most from the absence of regulation and profit from the forced invisibility of licensed companies. Brazil risks repeating the mistakes of countries like Spain and Italy, which, after restricting betting advertising, had to reverse the measure due to the growth of the illicit market.
2. Legal Instability and Market Repercussions: Less than a year after the enactment of Law 14,790/2023, the National Congress is already discussing its structural reformulation. This legal volatility compromises the business environment, deters investments, and undermines the country’s institutional credibility.
3. Alteration of Business Viability: The proposed changes can significantly affect the revenue of fixed-odds betting companies, which rely on advertising to foster their activities. This may reconfigure the economic viability of the business, which was established when the initial legislation was created, and after considerable investments were made to obtain operating licenses in Brazil.
In conclusion, it is evident that despite the legitimate concern with problematic gambling, the approval of Bill 2985/23 raises serious questions about its implications. It is crucial that the Chamber of Deputies thoroughly analyzes the potential consequences for consumers, the legal betting market, and Brazil’s image itself. A debate based on concrete data and an open dialogue with those involved in the sector are crucial for the legislation to genuinely serve the public interest without generating adverse effects.
