Brazil’s Ministry of Justice and Public Security has issued Order No. 2,344/2024, marking a significant step towards regulating gambling advertisements. This preliminary order aims to curb advertising practices that promote gambling bonuses and target vulnerable demographics, such as children and adolescents. The order, published in the Official Gazette of the Union, prohibits advertisements containing bonuses for casinos, even if framed as promotions. Additionally, it restricts advertising related to fixed-odds online gambling targeted at minors.

Key objectives of ban

The regulation seeks to mitigate issues like problem gambling, over-indebtedness, and consumer vulnerability. It prioritises protecting hyper-vulnerable groups, including children, ensuring a safer gambling environment for all. The order specifically targets promotions tied to gambling bonuses. Bonuses often include free credits, sign-up rewards, or promotional incentives aimed at attracting gamblers. The ban considers all such promotions harmful if they encourage excessive gambling behaviours.

The publication explains that this measure aims to prevent and combat problem gambling and over-indebtedness. It also seeks to ensure the safety of vulnerable individuals in consumer relationships, with a particular focus on protecting highly vulnerable groups like children and adolescents.

For operators, this restriction significantly limits their ability to market through common promotional strategies. Campaigns that hinge on bonus incentives will need a complete overhaul. Protecting younger audiences remains a central focus of this regulation. By preventing exposure to gambling advertisements, the Ministry ensures that children and adolescents are shielded from the potential harms of early gambling influences.

Operators failing to comply with the new rules will face steep penalties, including a daily fine of R$50,000 until the violations are rectified. The order allows companies 20 days from the date of the precautionary warning to make necessary adjustments. Non-compliance beyond this period will result in escalating consequences.

Gambling regulation in Brazil

The Ministry plays a pivotal role in regulating Brazil’s gambling sector, focusing on balancing consumer safety with industry growth. The Secretariat monitors and authorises operators, ensuring compliance with evolving regulations like the advertising ban.

As one of the latest companies authorised by the Secretariat, Stake Brazil Ltda must adapt swiftly. The company plans to establish an office in São Paulo as part of its compliance efforts and operational expansion. The order addresses the societal costs of gambling by reducing the prevalence of problem gambling and financial instability among consumers. Supporters argue that the order is a necessary step to curb gambling addiction and safeguard public welfare.

This order may pave the way for more comprehensive gambling regulations, including stricter controls on online platforms and additional advertising restrictions. As gambling becomes a growing industry in Brazil, finding a balance between economic benefits and societal safeguards remains crucial.

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