The Brazilian Finance Ministry has marked a significant regulatory milestone for sports betting with the issuance of Ordinance No. 1,300/2023 on October 27.
This regulation establishes a comprehensive framework for both national and international companies seeking to operate in the Brazilian sports betting market. The ordinance outlines minimum requirements for obtaining authorization for the commercial exploitation of sports betting activities, applicable to both domestic and foreign legal entities, with the latter required to have a regular formal presence in Brazil. The regulatory framework also emphasizes the lawful nature of resources supporting a company's share capital and imposes strict legal fitness criteria for individuals accountable for the company, its partners, ultimate beneficiaries, and key executives. Notably, professional athletes, members of technical and refereeing committees, or managers of Brazilian sports teams are prohibited from participating in the corporate structure of such entities.
In terms of communication, advertising, and marketing initiatives aimed at promoting sports betting services, the ordinance introduces several restrictions and mandates. Advertising content must include warning clauses regarding the potential dangers associated with gambling, prominently featuring phrases like "Play with Responsibility" or equivalent messages emphasizing social responsibility. The regulation imposes stringent restrictions on advertising and marketing content, prohibiting activities within educational institutions, portraying gambling as socially desirable, using statements by celebrities and influencers suggesting that gambling contributes to personal or social success, featuring messages of a sexual nature, or objectifying physical attributes. Additionally, all advertising must include age restriction warnings, incorporating the "18+" symbol or the warning "prohibited for children under 18."
As part of the regulatory landscape, the National Council of Advertisement Self-Regulation (CONAR) may establish additional restrictions and guidelines, issuing specific recommendations for communication, advertising, and marketing actions, as per Provisional Measure No. 1,182/2023, article 33 §2. The regulatory framework aims to ensure responsible and transparent practices within the sports betting industry while addressing potential risks associated with gambling activities.
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Joseph Vrachimis CEO at BetConsultant.Cy