Brazil Issues Ban on Casino Bonus Ads and Marketing Targeting Minors

This move aims to protect vulnerable groups, particularly minors, and curb problem gambling. The directive, published in the Official Gazette of the Union, marks a significant step in tightening the country’s gambling advertising policies.

Key Measures Under the Order

The new order prohibits advertisements featuring gambling bonuses, including those framed as promotions, and bans marketing directed at children or adolescents. These restrictions target all forms of fixed-odds online gambling ads perceived to appeal to underage audiences.

Vitor Hugo Do Amaral Ferreira, Director at the Ministry of Justice and Public Security, emphasized the importance of this measure, highlighting its role in preventing gambling addiction, excessive debt, and exploitation of vulnerable consumers. The regulation underscores a commitment to safeguarding individuals classified as "hypervulnerable," such as minors, from the adverse effects of gambling-related advertising.

Penalties and Compliance

Non-compliance with these rules will attract severe financial penalties. Operators found in breach face daily fines of R$50,000 (approximately USD 8,665.66) until they rectify the violation. The order grants a 20-day period for companies to address infractions following an initial warning.

These rules will apply to gambling operators authorized by the Ministry of Finance's Secretariat of Prizes and Betting. This includes Stake Brazil Ltda., the regional subsidiary of global gambling company Stake, which was recently added to the approved list. Stake Brazil Ltda. is expected to establish a São Paulo office and appoint a local manager as part of its operational obligations.

Broader Context

This development builds on Brazil's earlier moves to regulate the gambling sector. In May 2024, the government voted to ban promotional free bets, signaling a trend toward stricter controls on gambling incentives. The current order further reinforces this regulatory approach, aiming to balance industry growth with consumer protection.

By tightening restrictions on gambling ads, Brazil seeks to create a safer environment for consumers, particularly those most at risk of harm from predatory marketing practices.