Brazil’s regulated online betting market is entering another phase of regulatory change as authorities introduce tighter limits on player engagement features while lawmakers and government officials continue debating broader restrictions on gambling advertising and consumer protection.
The latest developments reflect a shift in priorities following the launch of the country’s regulated Bets market. After focusing on licensing operators and establishing the legal framework, policymakers are increasingly directing attention toward reducing gambling-related risks, strengthening responsible gambling measures and limiting the ways operators interact with customers.
SPA blocks social interaction tools on betting platforms
Brazil’s Secretariat of Prizes and Betting (SPA), which operates under the Ministry of Finance, has informed licensed operators that social media-style interaction features cannot be incorporated into regulated online gambling platforms.
The clarification followed a formal request from Kaizen Gaming, which sought guidance on whether its Betano brand could introduce an integrated social environment available only to registered users.
According to the submission, the operator wanted customers to share betting slips, highlight favourite slot and casino games and display gambling wins through their user profiles.
The SPA concluded that these functions conflict with Brazil’s existing regulatory framework for licensed gambling operators.
Regulators determined that allowing users to publish betting activity or gambling results amounts to sharing gambling-related data between customers, regardless of whether the platform includes direct messaging. Officials also concluded that these features could influence gambling behaviour by encouraging greater engagement or riskier play through mechanisms commonly associated with social media platforms.
The response, signed by Renato Perez Pucci, General Coordinator of Betting Supervision, cited Ordinance SPA/MF No. 722/2024, which expressly prohibits social interaction tools on digital betting platforms.
The regulator also warned that “operators found to be in breach of the ordinance could face administrative sanction proceedings.”
While rejecting social engagement features, the SPA confirmed that loyalty programmes and customer reward schemes remain permitted under the Bets framework. Those programmes must comply with Article 42 of Ordinance SPA/MF No. 1,231/2024 and cannot encourage customers to gamble more frequently or alter their gambling behaviour.
The authority added that its interpretation serves as guidance for every licensed operator in Brazil’s regulated market rather than applying only to Betano and its parent company.
The latest clarification adds another compliance adjustment for licensed operators, who have already adapted their customer acquisition strategies after Brazil prohibited welcome bonuses and promotional incentives when the regulated market opened on 1 January 2025.
Government and Congress examine tighter advertising controls
Alongside the SPA’s latest guidance, Brazil’s Executive branch and Congress continue evaluating further changes affecting the gambling industry, particularly advertising practices.
Finance Ministry official Dario Durigan said the government is considering restricting betting advertisements during FIFA World Cup broadcasts. The proposal would align gambling promotion more closely with existing restrictions applied to alcohol and tobacco advertising.
Durigan also suggested mandatory health-style warnings for betting promotions, stating: “The Ministry of Finance warns: betting sites are harmful to your health and cause you to lose income.”
Authorities have increasingly focused on advertising after the National Consumer Secretariat (Senacon) launched an investigation into the display of sports betting odds during broadcasts on CazéTV.
Legal experts believe the regulatory emphasis has shifted away from questioning the industry’s existence toward strengthening operational rules.
“The most likely scenario is not a ban on betting companies, but the strengthening of the sector’s operating rules, particularly regarding advertising,” explained Lorena Dinarowski, lawyer at Bruno Boris Advogados.
Industry representatives, however, have expressed concern that additional advertising restrictions could unintentionally benefit illegal operators.
Plínio Lemos Jorge, president of the National Association of Games and Lotteries (ANJL), said: “Any initiatives aimed at restricting advertising by betting companies will only contribute to an increase in the market share of illicit sites.”
Debate continues over the future of Brazil’s betting market
The discussion surrounding advertising forms part of a wider policy debate as Brazil balances tax revenue generated by the regulated market against concerns over consumer protection.
During the first five months of 2026, the sector generated nearly R$6 billion in federal revenue, increasing pressure on policymakers to reconcile fiscal interests with public health objectives.
Juliana Sene Ikeda, from Campos Thomaz Advogados, described the challenge facing policymakers.
“The greater the reliance on tax revenue, the less political room there tends to be for measures that reduce the volume of betting.”
Meanwhile, Congress continues reviewing more than 230 legislative proposals related to gambling regulation.
According to Caio Ruotolo, partner at Silveira Advogados, different priorities remain evident within Brasília.
“The Ministry of Finance tends to advocate for a revenue-focused model, whereas Congress seeks to moderate the political, economic, and social impacts of the regulation.”
Henrique Gasparino, executive director of NimbusTax, also cautioned against excessive regulation, saying overly restrictive rules could produce unintended consequences and “encourages bettors to migrate to underground platforms.”
Further changes appear likely before the end of 2026. Brazil’s government and lawmakers have already indicated that the Bets framework requires additional revisions, with proposals covering stricter licensing standards, enhanced responsible gambling measures, stronger consumer protections and tighter advertising controls. Among the initiatives supported by President Luiz Inácio Lula da Silva are measures that would prohibit gambling with borrowed money or credit while expanding safeguards for vulnerable consumers.
Licensed operators have also been advised to prepare for a broader overhaul of Brazil’s regulated betting framework that is expected to take shape after the 2026 general election, with implementation targeted for 2027.
Source:
“Brazil authorities draws a line on social gambling features“, sbcnews.co.uk, June 29, 2026.