Brazil’s National Consumer Secretariat (SENACON) has imposed a groundbreaking directive targeting gambling incentives, aiming to safeguard consumers and prevent exploitation. The new regulations, detailed in Order No. 2,344/2024, ban all forms of customer bonuses, upfront rewards, and promotional offers tied to betting activities. Furthermore, advertising targeted at minors has been strictly prohibited. These measures signal a decisive move to enforce transparency and accountability among operators in the growing online betting market. Here’s a detailed breakdown of the policy and its implications.

Key Provisions of SENACON’s Directive

1. Ban on Gambling Incentives Across Brazil
SENACON has mandated the removal of all customer rewards associated with gambling. These include bonuses, upfront payments, promotional advantages, and other incentives designed to attract players. The directive applies universally across Brazil’s national territory. Operators are now barred from advertising or offering such rewards, even under the guise of promotions, marketing, or other advertising strategies.

2. Protection of Minors from Gambling Advertisements
The directive explicitly prohibits advertising of fixed-odds betting games targeting children and adolescents. This measure addresses concerns about the vulnerability of young individuals to gambling promotion, fostering a safer digital and social environment.

Enforcement Measures and Obligations

3. Mandatory Transparency Reports
Operators must submit detailed transparency reports within 10 days, documenting steps taken to eliminate banned incentives. These reports are intended to ensure compliance and provide evidence of adherence to the directive.

4. Penalties for Non-Compliance
Failure to comply with SENACON’s order will incur a hefty fine of R$ 50,000 (approximately €8,000) per day. This serves as a deterrent against potential violations and underscores the government’s commitment to enforcing the rules.

Regulatory Framework and Complementary Ordinances

5. Alignment with SPA and Ministry of Finance Ordinances
SENACON’s directive aligns with Ordinance No. 615, issued by the Secretariat of Prizes and Betting (SPA) and the Ministry of Finance. Published in April, this ordinance already prohibited welcome bonuses and sign-up incentives, further strengthening Brazil’s regulatory framework for gambling operations.

Upcoming Developments in the Betting Market

6. Licensing of Operators Underway
The SPA, under President Regis Dudena, has begun the final procedures to license gambling operators. Qualified operators will be announced by December’s end. They must fulfill all authorization requirements within 30 days, including a R$30 million (€5 million) concession fee and platform certification checks.

Conclusion: A Pivotal Shift in Brazil’s Gambling Landscape

SENACON’s directive marks a pivotal moment in Brazil’s approach to regulating the gambling industry. By banning customer incentives and protecting minors, the government aims to promote ethical practices and transparency in the rapidly expanding betting market. These measures, coupled with strict licensing procedures, are poised to redefine the sector’s standards and reinforce consumer protection.