Brazil Senate plans ambush of Bets Law on death sentence

Leonardo Biazzi As Senators back proposals to dismantle the commercial framework of the country’s regulated online gambling market. Leonardo Biazzi reports on another bruising week for the Bets Law, as gambling policy becomes a political battleground ahead of Brazil’s October elections. It appears that the script writers of Brazil’s daily drama on online gambling are simply not bothered anymore. Apathy screams out, as on Wednesday the Science and Technology Committee (CCT) approved a package of measures under the proposal titled “Brazil against Bets” bill. The bluntly titled bill was presented to the Senate by CCT chair Senator Damares Alves, who co-authored and endorsed articles alongside six senators. Senator Alves joins the ranks of political counterparts seeking to end the Bets regime in year two of its existence. One way or another, Bets will come to an end, as it seems that everyone wants their fingerprints on the murder weapon. There is no attempt to conceal the bill’s objective to “dismantle the commercial framework” of Brazil’s newly regulated online gambling sector. The modalities will impose a near-total advertising blackout, ending sportsbook sponsorships and potentially removing several popular online casino products from the licensed market. The committee also approved an urgency request, allowing the proposal to move quickly to the full Senate. A near-identical measure, Bill 2,478/2026, has been submitted separately to the Chamber of Deputies, giving the campaign a route through both houses of Congress. Alessandro Vieira, the bill’s original rapporteur, presented an amended text to the CCT. He portrayed the proposal as a response to mounting public concern about gambling-related harm, rather than an ideological campaign against betting. “This is a non-partisan initiative,” he said. “It stems from society’s current understanding of the extent of the damage caused by so-called betting.” That claim of consensus will be tested by the scale of the proposed intervention. Rather than merely tightening the rules governing gambling promotion, the bill would make licensed betting businesses almost invisible to the Brazilian public. Advertising is over The bill’s reach is striking. It would ban gambling advertising on television, radio, newspapers and magazines, as well as outdoor displays. Digital channels would receive the same treatment: streaming services, podcasts, social networks, video platforms, websites, apps and search engines would all be covered. Operators would also be prohibited from using targeted advertising, emails, text messages and push notifications. The restrictions would extend to affiliates, tipsters, esports and promotions placed within video games. In effect, licensed bookmakers would be denied most conventional means of reaching customers. The only remaining space for brand visibility would be determined by whatever limited exceptions survive the bill’s passage through Congress. The commercial restrictions would go further still. Bonuses, promotional credits, free bets, cashback, free spins and loyalty schemes designed to encourage betting would all be prohibited. Such measures would make Brazil an awkward experiment: a regulated market in which authorised operators can accept bets but have few opportunities to explain their products or distinguish themselves from illegal competitors. The tension is likely to feature prominently when the Senate debates the bill. Senate told to reject football pleas The most immediate financial consequences would be felt by Série A clubs. Licensed operators will be barred from sponsoring clubs, federations, leagues, competitions and sports broadcasts. Cultural events, concerts, educational projects and social initiatives would also be off limits. Naming-rights deals, brand licensing and ambassador agreements involving athletes, influencers, artists and celebrities would be prohibited. Existing sponsorship contracts would receive a 24-month transition period, after which they would have to end. Renewals and extensions during that period would be permitted only in narrowly defined circumstances, principally where an existing agreement expires within the transition window. Brazilian football has become deeply dependent on betting money. Most clubs in Série A feature a bookmaker as their principal sponsor, while both the Brasileirão and Copa do Brasil have operator partnerships. Removing this funding within two years would force clubs and competitions to find replacement revenue in a crowded sponsorship market. Lawmakers may regard that disruption as a necessary price for reducing gambling’s cultural visibility. Football executives are unlikely to agree. Products licensed on risk category The bill does not stop at advertising. It would establish a classification system based on the potential harm associated with different gambling products. Roulette, online slots, crash games and simulated virtual sports could be placed in an “excessive-risk” category and removed from the regulated market altogether. That would represent a substantial retreat from Brazil’s decision to permit online games alongside fixed-odds sports betting. This presents another regulatory dilemma. Prohibiting popular products does not necessarily eliminate demand for them. It may instead direct customers towards offshore websites, where Brazilian consumer protection, taxation and monitoring requirements carry little weight. The measure nevertheless pairs restrictions on licensed operators with tougher sanctions against the illegal market. Advertising an unauthorised betting service would become a criminal offence punishable by between one and five years in prison. Sentences could be increased by between one-sixth and two-thirds when the promotion is carried out by influencers, athletes or other prominent personalities. Mr Vieira also added a 24-month revolving-door restriction. Gambling executives would be prevented from moving directly into public bodies responsible for licensing, regulation and supervision. Officials working in those institutions would face the same quarantine before joining the betting industry. Sentencing is done The committee vote followed a public hearing at which government and industry representatives exposed the widening division over Brazil’s gambling policy. Ms Alves attacked one of the industry’s favoured expressions. “They present it in such a romantic way: “Responsible gaming’,” she said. “It’s not responsible gaming; it’s gambling, it’s responsible loss.” That language captures the mood behind the bill. Its supporters no longer appear interested in just correcting advertising excesses. They want to reduce gambling’s visibility, commercial appeal and range of products. In a wider context, does the intervention of the CCT even matter, as President Lula tells his PT ranks to prepare for the suspension and repeal of the Bets regime by the end of 2026? This week, it was reported that Lula held meetings with PT officials at the Planalto Palace to discuss a roadmap for dismantling Bets. Anxieties over the PT taking a hardened approach to online gambling have been strengthened by reports that the meeting featured no representatives from the Secretariat of Prizes and Betting (SPA) or the Brazilian Institute of Responsible Gaming (IBJR). Soundbites from the president’s office continue to blame Bets for the “rising debt levels of Brazilian families”, yet the president has still presented no factual evidence to support the claim – only campaign slogans. Evidence or rationale may no longer be required in the trial of the Bets Law, which appears to have been sentenced long ago. Its carcass is now being dragged through the streets in a political sideshow leading up to October’s election.