It hasn’t taken long for some Brazilian legislators to get tired of gambling advertising less than a year into the existence of the country’s new regulated gambling market, while operators continue to up marketing activity.

Robério Negreiros, a Representative in the Legislative Chamber of the Federal District (CLDF) for the Social Democratic Party (PSD), has introduced a bill looking to ban betting and gaming advertising in the region.

The Federal District contains the capital city of Brasilia, and is the 20th largest of Brazil’s federative units with a population of just under three million. Negreiros’ proposal would see sponsorship deals significantly cut back in the state.

As with other major betting markets, Brazil has seen an explosion in advertising activity and sponsorship deals, many of the latter pre-dating the regulated ‘Bets’ market’s launch on 1 January 2025.

Various prominent football clubs have signed deals with betting companies, such as Flamengo with Betano, Vasco da Gama with Betfair and Estrella Bet, and São Paulo with SuperBet, among others.

Negreiros’ proposed bill seeks to ban such sponsorship deals between sports organisations and betting operators within the Federal District. It also targets advertising in television, radio, newspapers and magazines, digital advertising, and sponsorship of official events hosted by public authorities.

The Representative explained his rationale, as reported by SBC Noticias: “Individual freedom of choice will be maintained, but it will eliminate the constant advertising pressure that can induce compulsive behavior. 

“This is a proportional measure that balances economic freedom with social protection.”

Negreiros main concern seems to be the impact of gambling on families, particularly those on lower incomes. This is a concern that has been shared with the Federal Government, and is one which has translated into direct policy.

The Ministry of Finance, which oversees the country’s gambling regulator the Secretariat of Prizes and Bets (SPA), took a huge step earlier this year by banning people receiving Bolsa Familia benefits from gambling – equating to some 30 million Brazilians.

Negreiros remarked on his proposed bill: “Recent data shows that virtual gambling platforms have contributed significantly to the increase in debt among families in Brasília, especially among the lower-income classes, who commit a substantial portion of their family income to gambling in the expectation of quick wins.”

Ban not concrete but shows discontent

The PSD is a small-to-medium sized political force in Brazil, holding 42 seats in the 513-seat Chamber of Deputies and 16 in the 81-seat Federal Senate. In the Federal District legislature, it has just one member – Negreiros, though he does sit as part of a governing coalition.

This means that the bill’s passage into law is far from a guarantee. However, it may be indicative of general discontent towards the gambling sector, or certainly some of its practices and the way in which it is governed, early on in the Bets’ regime’s existence.

In August, the SPA Secretary Regis Dudena took note of the increase in advertising activity seen in Brazil over the previous months, adding that government intervention may be required at some point.

“When people criticise, they are often looking at stadium activations, football club shirts, TV commercials,” he said. “At some point this may need to be controlled more closely, with some restrictions.”

There is the risk that Brazil may reach a point seen in established European markets like the Netherlands and Belgium, where public and political criticism of gambling advertising has led to very strict clampdowns.

Discourse around advertising is not deterring operators from engaging in marketing activity and planning new campaigns, however. Flutter Entertainment is in the process of finding a new marketing agency, for example, appointing international consultancy SCOPEN to conduct the search.

The company, the most valuable betting and gaming group in the world by market cap, was already active in Brazil via its Betfair exchange, but significantly amped up its presence by acquiring NSX, the parent firm of Betnacional, earlier this year.

Alvaro Garcia, Chief Marketing Officer (CMO) at Flutter Brazil, said: “We have been working to consolidate our leadership in a highly competitive market, while reaffirming our commitment to innovation, creativity, responsibility, and actions that create real connections with sports, entertainment, and the Brazilian people.”