Brazil’ s sports betting industry could be worth BRL13.8 billion this year according to H2 Gambling Capital; Bet Nacional have 4 % of the market
by DataSenado revealed 60 % of the population is now in favour of legalising land-based gambling. Part of the industry’ s frustration lies in the belief that politicians are responding to public pressures, rather than to the data and global sector experiences that prove why ad restrictions could have unwanted consequences.
But some politicians, particularly the rapporteur of the new advertising restrictions bill, have adopted a negative rhetoric around gambling, insisting that it is negatively impacting public health and finances.
Felipe Maia believes there isn’ t a negative public perception of gambling in Brazil and warns politicians are simply repeating the concerns of specific groups.“ Basically, they’ re responding to their echo chambers,” he says.
“ If they’ re religious, they are responding to the groups they represent, if they’ re more conservative, they are saying [ these things ] because this echoes well to their public. What you have is an opportunistic approach by some politicians to use this for propaganda purposes.”
The situation is complicated further by Brazil’ s long history of gambling prohibition, with the sector essentially made illegal in 1946. This has resulted in a lack of political understanding.
“ We’ re trying to make them understand and, of course, in Brazil, with 80 years with cultural prohibition of gambling, they don’ t really know yet what our industry does, what you can provide for the country,” says Fraga.“ It’ s a process for us to teach them, to explain to them [ how our industry works ] and to avoid those views, because many of these bills are talking about misconceptions.”
WHAT’ S THE SOLUTION?
Ultimately, an effective response to Bill 2,985 / 2023 from Brazil’ s betting sector could be handicapped by fragmented representation of the industry.
According to Felipe Maia, there are five trade associations that represent betting companies, causing a lack of coordination, and likely a weakening of the industry’ s response to any perceived overregulation.
“ I had this complaint from a congressman. What they say is it’ s very hard to deal with this industry, because they get different inputs from different associations, and then they don’ t know who to trust,” Felipe Maia declares.
Collaboration is the way forward in Garita’ s view. He agrees there is fragmentation in industry representation and that complicates the formulation of an effective response.
“ Lobbying efforts and collective action by responsible operators and associations will be crucial,” Garita adds.“ We need unity and coordination to defend common interests.”
During the Sports Commission hearing to approve Bill 2,985 / 2023 on 28 May, Senator Portinho said the changes were necessary due to the sector’ s inability to police its own advertising activities.
Felipe Maia urges operators to selfregulate where possible, to prove they are good actors.“ I think self-regulation shows social responsibility, maturity. And it allows you to come up with solutions that work for the industry before someone comes with an idea that will not work,” he says.
CRITICAL JUNCTURE COMING
As Seckelmann explains, an assertive but constructive approach to advertising regulations could help mitigate the negative opinion of politicians.“ It is essential to emphasise that advertising, when done responsibly, plays a key role in channelling users toward licensed, safe operators and away from illegal sites,” he reiterates.
As it stands, those seeking to restrict gambling look to be edging the battle, especially with the industry’ s current inability to form a collective, datadriven response that effectively warns against the perils of overregulation on advertising witnessed in other markets. The industry’ s point is clear: overly restrictive measures on ads at this point in Brazil’ s regulated online journey could prove disastrous and drive players out of the licensed sector.
As the Chamber of Deputies, legislation’ s final hurdle, prepares to evaluate Bill 2,985 / 2023, Brazil’ s betting sector must act quickly to make its case against the perceptions that threaten to damage the legal market’ s progress.
iGB L! VE 2025 • ISSUE 138 • 63