Regulatory Radar | Fixed-Odds Betting – Ed. 08

It was a week of regulatory tightening on several fronts. New mandatory warnings on betting ads took effect, the SPA/MF barred betting on youth (academy) sport categories, a court ordered an operator suspended for failing to control access by minors, and yet another city restricted advertising. In Congress, new bills poured in. Below are the points that deserve your attention.

Betting ads must now carry risk warnings

As of today, every betting ad must carry a warning such as “Betting can cause addiction”, “Betting makes you lose money” or “Betting is not an investment”. The message must be clear, displayed horizontally, and take up at least 10% of the size of the piece. The rules come from two federal ordinances published this month and are not aimed at operators alone: they reach platforms, agencies, media outlets and anyone who boosts content. Commentators are also barred from recommending bets during broadcasts. Penalties range from fines to suspension and license revocation.

What this means: This is the change with the greatest immediate impact of the week and it affects the entire client base. It is worth reviewing your live creatives now, along with contracts with agencies and affiliates and your media-approval flows. Liability has been spread across the whole chain, so the risk no longer sits with the operator alone.

Use of athletes’ images in individualized betting markets: a risk to watch

Some football players have begun going to court over the use of their names in individualized betting markets – the “player to score a goal” or “to receive a card” type. The lawsuits are recent and the outcomes have been mixed. They ask for two things: that the platform stop using the athlete, and that it pay compensation for the unauthorized use of his image. The sensitive point is the second. The Superior Court of Justice (STJ) has already settled that the unauthorized commercial use of a person’s image gives rise to compensation even without proof of loss – and, in Brazil, this right requires the athlete’s individual authorization; agreements with clubs or governing bodies are not enough. If this reasoning is extended to betting, the risk stops being an isolated ruling and becomes one of high-volume claims.

What this means: More than an order to pull a market, what could weigh most is the multiplication of compensation claims. It is worth mapping where the operation individualizes athletes and sizing that exposure – watching closely, but without treating the first, still-unstable rulings as the final word.

Betting on “Under” age categories and university sport: the regulator has closed the door

The Secretariat of Prizes and Betting, the sector’s regulator, notified all operators this week that betting on youth (academy) competitions is off the table – and made the scope clear. The ban covers “Under-20”, “Under-21”, “Under-22” and “Under-23” competitions, their equivalents, and also university sport, both domestic and international. The ban itself is not new: the Betting Law and a Ministry of Sport rule already blocked betting on youth categories and on events involving only minors. What changed is the official reading that it makes no difference whether the Under-23 or the Under-21 field adult athletes; what counts, in the regulator’s view, is the developmental nature of the competition.

What this means: Although we disagree with the official reading – since some of these categories involve exclusively professional, adult athletes – if your operation offers these markets, now is the time to review. It is worth sweeping the youth-football catalogue (the Olympic tournament, for example, is Under-23) and university events.

Rio de Janeiro and Belo Horizonte restrict betting advertising

Rio de Janeiro published a decree banning, across the entire city, betting advertising in public spaces and street furniture subject to municipal authorization, effective immediately and requiring the removal of ads already in place. A few days later, Belo Horizonte issued a similar rule, which further bans advertising within a hundred-metre radius of schools and facilities for children and adolescents. São Paulo and Recife are discussing comparable measures. The cities rely on their power to regulate land use and the urban landscape.

What this means: It is no longer an isolated Rio case; it has become a trend. For those investing in out-of-home media, the effect is practical and already in force, with short deadlines to adapt contracts, and each market has its own rule. Legally, the angle is one of competence – a municipality restricting advertising of an activity regulated by the Union opens room for challenge, and the outcome will likely hinge on the judgment of a Rio Grande do Sul state law already before the Federal Supreme Court (STF).

Court orders operator suspended for failing to control access by minors

A court in Paraíba ordered an authorized operator to take its platforms offline within 48 hours until it proves effective mechanisms to prevent access by minors, under a heavy daily fine. The decision is first-instance and can be appealed, but it is the first order to fully suspend an authorized house on that ground. In the same week, the Public Prosecutor’s Office continued filing class actions over abusive advertising involving influencers.

What this means: Age and identity verification has stopped being a paper-compliance item and become a business-continuity risk. It is worth reviewing your verification flows now (biometrics, liveness/proof-of-life, KYC) and the documentation that proves their effectiveness – that is what the courts are demanding.

Federal Revenue finalizes tax rules on commissions paid by betting operators

Earlier this month, the Federal Revenue Service detailed the withholding of income tax at source on commissions, brokerage and other payments made by the platforms. The rule targets payments to third parties in the chain, not the bettor: for the individual placing bets, nothing changes.

What this means: Anyone paying commissions to affiliates, partners and service providers should check that withholding flows are aligned with the new rule, to avoid assessments. It is a fiscal-routine adjustment for operators and their partner network, with no change to the burden on the player.

Congress files a new wave of betting bills

This week alone, seven new betting bills were filed in the Chamber of Deputies and the Senate. The toughest range from banning all advertising to repealing the Betting Law itself, including one that seeks to remove electronic random-outcome games – online “casino” – from the fixed-odds regime. Others target monthly deposit limits, restrictions on sports sponsorship, and the blocking of bettors who owe child support. Nothing has been voted on, but the volume shows which way the wind is blowing.

What this means: The legislative environment points to more restriction, especially in advertising, sponsorship and online casino products. It is worth following closely to anticipate changes that could affect product offering, marketing and sponsorship.

Looking ahead

Our team is available to discuss the impact of any of these topics on your business.

This material is for informational purposes only and does not constitute legal advice. The analyses reflect the team’s understanding as of the date of publication and may be revised as regulations or case law evolve. For specific guidance on concrete situations, please consult a lawyer on the team. © Souto, Correa Advogados — Betting Regulation Practice.