Brazil at a Crossroads: Can the Betting Sector Resist New Advertising Restrictions?

Mounting Pressure on Brazil’s Legal Betting Industry

Brazil’s newly regulated online betting market has faced growing pressure in its infancy, and now, a fresh legislative challenge is underway. On 28 May 2025, the Brazilian Senate passed Bill 2,985/2023, which aims to tighten gambling advertising regulations. This includes bans on advertising during live sports broadcasts and strict limits on the use of celebrities, influencers, and athletes in promotional content.

While the most severe proposal—a total advertising ban—was removed from the bill, the amended version still introduces sweeping changes that many operators believe could hamper the sector’s growth. The legislation now moves to the Chamber of Deputies for final review, and, if approved, is expected to take effect in 2026.

Legal Experts Raise Concerns Over Lack of Evidence

Udo Seckelmann, head of gambling and crypto at Bichara e Motta Advogados, welcomed the removal of the blanket ban but warned that the remaining proposals lack a foundation in empirical data.

“The motivations, although well-meaning, must be weighed against real-world outcomes,” said Seckelmann. “The evidence suggests that informed, responsible regulation is more effective than prohibition.”

What Brazil’s Current Gambling Ad Laws Say

Brazil already has advertising rules in place under Normative Ordinance No. 1,231, introduced by the Secretariat of Prizes and Bets (SPA) in July 2023. These rules prohibit operators from promoting betting as a glamorous or socially attractive activity, forbid content that targets children or adolescents, and require all ads to include an “18+” warning and responsible gambling messaging.

Many believe these measures are already adequate. Luiz Felipe Maia, founding partner at Maia Yoshiyasu Advogados, argues that with Brazil only recently launching its regulated market, it is vital for licensed operators to be allowed to advertise openly to build consumer awareness.

“When you have a new regulated market, it’s important to allow operators to advertise and become known to the public,” said Maia. “Too many restrictions could prevent players from identifying legal platforms.”

Operators Split on Whether More Rules Are Needed

EstrelaBet’s Chief Business Officer, Fellipe Fraga, agrees with Maia: “I believe the current laws are enough. Politicians must understand that online betting is a global trend, and Brazil can handle it with responsibility.”

But Betsul CEO Fernando Garita wants clearer, more consistent rules. “A better balance is needed—one that enables responsible messaging without stifling legitimate commercial activity,” he argued.

Influencer Advertising: From Tool to Target

Gambling promotion by digital influencers became a hot-button issue in 2024 following the “Fortune Tiger” scandal. The game was widely advertised by social media personalities, many of whom were later investigated or arrested after it was revealed they had promoted illegal operators. Players lost large sums of money on fraudulent platforms.

This led the SPA to increase oversight of influencer advertising. Notably, Virgínia Fonseca—a popular Brazilian content creator—was summoned by a parliamentary inquiry in May to testify about her gambling-related endorsements.

Felipe Maia says enforcement, not overregulation, should be the focus: “If influencers who break the rules face real consequences—fines, legal penalties—we’ll see behaviors shift without needing stricter laws.”

Overregulation Risks Driving Players to the Black Market

Brazil isn’t alone in navigating this issue. Countries like Germany and Italy serve as cautionary examples. In Germany, gambling ads are banned between 9pm and 6am, and further restrictions apply to sports-related ads. Yet studies show nearly 50% of German bettors still use black market sites.

Italy, which introduced a blanket ban on gambling ads in 2018, continues to struggle with illegal operators. The same pattern is emerging in Argentina. Industry leaders warn that excessive restrictions could drive Brazilian players to unregulated platforms, particularly via encrypted apps like Telegram.

“Blanket bans reduce visibility of legal operators, while illegal ones continue unchecked,” said Garita. “Experience from countries like Italy proves this.”

The Importance of Advertising in Building Legitimacy

Legal operators argue that advertising is a key signal to the public that a platform is regulated and trustworthy. Required elements like the “18+” symbol and risk disclosures allow advertising to serve a protective function, not just a promotional one.

“Advertising allows us to build trust, educate users, and promote safety,” said Garita. “Removing that visibility blurs the line between legal and illegal operators.”

Even in mature markets like Sweden, many players still struggle to distinguish licensed platforms from black market ones—making ad visibility even more crucial in Brazil’s early regulatory phase.

Negative Perceptions Fueled by Political Echo Chambers

Despite a recent DataSenado survey showing that 60% of Brazilians support legalizing land-based gambling, some politicians maintain a hardline stance. In November 2024, Brazil’s Supreme Federal Court held a hearing prompted by a trade union that claimed new betting laws were unconstitutional due to concerns over addiction and financial harm.

Maia believes this stems more from political image management than data: “Politicians are responding to their echo chambers—whether religious or conservative. They’re not reflecting the facts or the public.”

Fraga agrees, adding that decades of gambling prohibition in Brazil have led to widespread misunderstandings about the industry: “There’s a lot of education needed. Many politicians simply don’t know what this industry really offers the country.”

Industry Representation: A House Divided

One obstacle to meaningful dialogue with policymakers is the betting industry’s fragmented representation. With five different associations lobbying for the sector, lawmakers often receive conflicting input.

“One congressman told me it’s difficult to know who speaks for the industry,” said Maia. “This fragmentation weakens our ability to advocate effectively.”

Garita echoed the need for unity: “Lobbying efforts and collective action by responsible operators are essential. We must coordinate to defend our shared interests.”

Self-Regulation as a Path to Credibility

As the bill moves closer to becoming law, Felipe Maia urges the sector to take initiative. “Self-regulation shows maturity and social responsibility,” he says. “If the industry creates viable solutions, it reduces the risk of poorly designed government intervention.”

Seckelmann agrees, noting that a proactive, data-driven response could help counteract political fears. “It’s essential to show how responsible advertising can protect consumers and strengthen the legal market,” he said.

The Critical Next Step

With the Chamber of Deputies set to review Bill 2,985/2023, Brazil’s betting sector faces a decisive moment. Without a unified, evidence-based counterproposal, the restrictive approach may prevail.

Stakeholders argue that, at this early stage in market development, cutting visibility for regulated platforms could be disastrous—not only for business but for consumer protection. The industry now has a narrow window to respond with coordination, clarity, and confidence.