On 4 February, the Science and Technology Committee of the Brazilian Senate (CCT) approved Act No. 3563/2024, which aims at the total prohibition of advertising, sponsorship and promotion of sports games and online gambling in Brazil. The bill has now been submitted to the Constitutional and Judicial Council (CCJ).
The purpose of the Act is to amend the current Brazilian law on sports lottery and to completely prohibit all dissemination related to a fixed rate of compensation. The scope of application covers advertisements in all media, such as radio, television, newspapers, magazines, outdoor billboards, the Internet and social media, and prohibits sponsorship of sporting events, civic events, cultural activities and sports, civics, cultural groups or institutions. In addition, the Act places restrictions on indirect forms of advertising, including the implantation of television programmes, films, web content, products in the rebroadcasting of sports events, primary advertisements in digital media, subconscious advertisements, commercial promotions, social media announcements and Internet advertisements. The Bill also explicitly prohibits pre-assembly applications in smartphones, tablets, computers, smart television and other electronic devices. Another important element of the bill is a general ban on the campaign for the results of elections at all levels of government and legislative bodies, as well as the referendum and referendum. The new article specifies that: “Article 33-A: Prohibits the operation of an entity or virtual fixed rate of compensation for which the results of elections to public office in an executive or legislative body are the subject of a statement.”
Violations of the ban on voting are subject to fines ranging from R$50,000 to R$550,000 (approximately RMB 7,500 to RMB 75000), the amount to be determined on the basis of the financial capacity of the offender and the gravity of the violation. The bill establishes severe penalties for violations of the ban on advertising, including warnings, fines ranging from 50 to 10 million yuan (approximately 750 to 1.5 million yuan RMB), suspension of the operating authorization of the fixed rate of compensation and permanent revocation of the operating licence plate. The new article of the Act states: “Article 16-A: Prohibition of sporting advertising at a fixed rate throughout the country” and covers all channels of communication. Follow-up consideration of the bill will be the responsibility of the Constitutional and Judicial Council. The review is expected to be incorporated into the special working group currently being set up in the Senate to analyse the bill and other similar legislative proposals in an integrated manner. The bill, if finally adopted in its current or revised form, would be the most stringent regulatory challenge in Latin America to the regulation of gaming and online games advertising, with far-reaching implications for the business environment in Brazil.
