Brazil’s Ministry of Justice and Public Security has carried out sweeping measures to control playing commercials by way of Order No. 2,344/2024. This initiative, spearheaded by the National Consumer Secretariat (SENACON), goals to get rid of promotional practices tied to playing bonuses whereas safeguarding susceptible populations, together with youngsters and adolescents.
Key Provisions of the Ban
The newly issued order prohibits all types of playing incentives, together with bonuses, sign-up affords, and promotional credit, even when framed as common promoting. It additionally mandates the suspension of fixed-odds betting commercials focused at minors. These restrictions are a part of a broader effort to mitigate dangers corresponding to drawback playing, shopper exploitation, and monetary instability.
Bonuses, typically used as advertising instruments to draw gamers, are seen as probably dangerous for encouraging extreme playing. “The safety of vulnerable people in the consumer relationship, with special attention to hyper-vulnerable people such as children and adolescents,” is a central focus of the directive.
Operators who fail to conform face day by day fines of R$50,000 (roughly €8,000). To keep away from penalties, firms should submit a transparency report detailing their compliance measures inside 10 days.
Broader Regulatory Efforts
The order builds on earlier measures, corresponding to Ordinance No. 615 issued by the Ministry of Finance, which banned welcome bonuses and upfront incentives for playing. According to the ordinance, operators are prohibited from granting “advancements, bonuses, or prior advantages, even for promotional purposes.”
As a part of the regulatory framework, licensed operators should additionally adhere to stricter tips concerning cost techniques, participant protections, and promoting content material. The Secretariat of Prizes and Bets (SPA) oversees this transition, making certain operators meet necessities throughout the licensing interval.
Protecting Vulnerable Groups
This crackdown displays the federal government’s dedication to shielding at-risk people from gambling-related hurt. Studies performed earlier this yr revealed troubling traits, corresponding to welfare funds being misused for on-line playing. The Ministry goals to handle these points by limiting publicity to playing promotions, notably for minors.
In addition to banning bonuses, the measures purpose to scale back the societal prices of playing, together with drawback playing and monetary misery amongst customers. Advocates argue these laws are essential to foster a safer and extra sustainable betting atmosphere.
Implications for Operators
With Brazil’s regulated betting market set to launch formally on January 1, 2025, these measures will considerably influence operators. Campaigns counting on bonus incentives would require a whole overhaul, and compliance with these stricter promoting requirements will likely be crucial for sustaining operational licenses.
Regis Dudena, President of the SPA, confirmed that closing licensing procedures are underway. By the top of December, certified operators will likely be introduced, and they’re going to have 30 days to fulfill all authorization necessities, together with paying an upfront concession charge of R$30 million (€5 million).
Source:
“Brazil moves to ban marketing of betting bonuses“, igamingbusiness.com, November 19, 2024.
