The realm of Brazilian football is set for a significant change as the Brazil Football Confederation’s (CBF) 2024 General Competition Regulations, consisting of 143 articles, have introduced specific directives regarding sports betting advertisements encapsulated within article 114. Scrutinizing these new regulations reveals a tightening grip on sports betting ads, delineating a scope that aligns with Law 14,790, previously known as Bill 3,626, the legislative framework that sanctioned igaming and sports betting in the country.
Since the Bill’s approval in December of the preceding year, regulatory actions have been at the forefront of fully legitimizing the market. The new set of rules issued by the CBF stipulates that any form of advertising from sports betting entities, including those on World Cup team jerseys, must adhere to the guidelines instituted by Law 14,790 and the ministry of finance.
These measures have been bolstered by recent developments from the Ministry of Finance, which just last week released a timeline outlining the gradual enforcement of Bill 3,626’s provisions. Within this framework, the SPA, or the Regulatory Policy of the Prizes and Betting Secretariat, has been instated as the overseeing regulator.
The plan is segmented into four distinct phases, with advertisements’ surveillance systems scheduled for installation in the third phase, targeted to wrap up by the close of June.
Bill 3,626 proscribes unauthorized operators from disseminating gambling ads and sets stringent prohibitions against any deceptive claims regarding winning odds. Furthermore, it outlaws advertisements depicting betting as an endorsed societal activity or as a solution for financial quandaries.
Another substantial portion of the Bill is the ban on celebrity and public figure endorsements in gambling promotions—a topic poised for Senate discussion in Brazil as early as February.
The new guidelines distill down to simple terms for licensed operators desiring to showcase sports betting at CBF events—they shall be required to submit an explicit declaration of innocence concerning any match-fixing associations, extending to both the company and its workforce.
CBF asserts its authority to banish adverts from operators that do not concur with its policies or are under suspicion of involvement in match-fixing.
Infringing clubs will not be spared as they will face monetary penalties if they exhibit sports betting ads non-compliant with these rules.
Already in motion, the first stage of the Ministry’s regulatory unveiling will extend till April’s conclusion, and it encompasses the publication of rules on technological, payment, and security specifications for licensed operations.
Following this, Stage Two is expected to end by May, with the SPA providing guidelines for the prevention of money laundering, terrorism funding, and other illicit activities such as fraud and the proliferation of weapons of mass destruction.
The last phase, concluding at the end of July, will allocate contributions from the industry to socially responsible initiatives. Upon completion of this timeline, it is anticipated that Brazil’s igaming and sports betting sector will be wholly regulated.
Reflecting on the path to current developments, the journey has been far from straightforward. Bill 3,626 experienced numerous impediments, with igaming being temporarily detached from the legislation and the finalizing vote facing repeated postponements.
Nonetheless, some solace came through the lowering of the controversial 18% tax rate to a more agreeable 12%. This move potentially signifies a maturing understanding and acceptance of the sports betting domain within Brazil’s regulatory environment, paving the way for an efficient, transparent, and responsible betting scene tethered to the ever-passionate sphere of Brazilian football.
