Brazil’s sports betting scene may encounter a new obstacle when a bill to ban celebrity endorsements is introduced. As the country edges towards legalizing sports betting, this legislation could present fresh challenges to the market’s development. The significance of ambassador marketing and its impact on the betting landscape in Brazil is up for debate, and our article provides a detailed examination of these issues within the Brazilian context.
What’s the Status of Sports Betting in Brazil
Brazil is poised to establish a legal and regulated sports betting market following the Chamber of Deputies’ favorable vote on a pivotal bill that has been a major focus in 2023. Notably, this legislation also paves the way for legalizing and regulating online casino games despite earlier resistance and modifications from the Senate.
The legislation, known as Bill PL3626/23, was revisited by the Chamber of Deputies on December 13 due to the Senate’s inability to resolve ongoing disagreements regarding the inclusion of online casino games, with substantial opposition from Liberal Party Senators.
After undergoing over 100 amendments since its initial review, the bill was ultimately endorsed by the Chamber of Deputies, with 261 members supporting the inclusion of online games and 120 opposing in the final vote.
To operate, companies must secure a five-year license costing BRL 30 million ($6 million), allowing them to run up to three brands nationwide. Requirements include a Brazilian-based operation and a legal representative in the country. Betting operations will be overseen by entities authorized by the Ministry of Finance, which must include a Brazilian board member with at least a 20% stake.
Over 130 companies have expressed interest in obtaining a Brazilian license. However, the licensing process awaits President Lula’s approval. His willingness to sign contrasts with the hesitation shown by former President Jair Bolsonaro at the end of 2022, which reset the legislative efforts for 2023.
The Bill to Ban Ambassador Advertising
Bill 3,405/2023 aims to ban celebrities’ involvement in sports betting advertising. Senator Eduardo Girao, a known opponent of gambling in Brazil, proposes amendments to prevent individuals deemed influential from participating in gambling marketing efforts.
According to Girao, the enactment of Bill 3,405/2023 is intended to safeguard Brazilian citizens from the potential emotional and financial dangers associated with gambling. Globally, celebrities often endorse various brands, capitalizing on their popularity and large followings. However, in many European countries, stringent regulations restrict celebrities from appearing in gambling advertisements, including those for sports betting. Brazil aims to adopt a similar approach to this bill.
Sports betting in Latin America is closely linked with endorsements from well-known public figures, including musicians, athletes, and actors, who often promote gambling operators. Notable examples include Paolo Guerrero as the Global Casino Ambassador for Betsson and Everson Felipe Marques Pires for Betmotion. The new legislative proposal aims to end such endorsements, with the authorities suggesting that gambling companies should rely on traditional advertising methods rather than leveraging the fame of sports and entertainment celebrities.
A Growing Trend in the Sports Betting Landscape
The legislation banning celebrities from endorsing betting advertisements echoes measures taken in other jurisdictions. For instance, the United Kingdom has already enforced a ban that prevents social media influencers and renowned athletes from appearing in gambling ads.
This regulatory shift occurred in 2022 when the UK introduced tighter controls over gambling advertising. The updated regulations barred gambling companies from targeting minors and from employing celebrities who possess a significant allure to the youth in their advertising campaigns.
Similarly, Ontario, Canada’s most populous province, unveiled plans last summer to implement rules that would bar celebrities and athletes from featuring in gambling advertisements. These regulations are anticipated to be enacted later this month. France has intensified its rules surrounding the advertisement of sports betting. The French gambling authority, l’Autorité Nationale des Jeux (ANJ), has made it illegal to use an athlete’s likeness in any gambling-related communications.
In July, Belgium implemented a comprehensive ban on gambling advertising, sparking controversy within the gambling industry. Critics argue that this ban might inadvertently bolster the illegal gambling market. On the same day as Belgium, the Netherlands banned gambling advertisements across most media outlets. However, the Dutch ban allows for targeted advertising under specific conditions, aiming to ensure that 95% of the audience for these ads is over 24.
Germany and Italy are already known for their stringent regulations on sports betting advertisements. In both countries, the gambling industry is advocating for a relaxation of these strict measures in the future.
Final Thoughts
Brazil hopes to finally start issuing sports betting licenses this year after the final details are straightened out. Even though the population is split on banning celebrities from promoting bookmakers, authorities seem determined not to back down. Even so, the good news is that regulated sports betting will finally come to the country after six years of back-and-forth.
