SBC News Brazil Consumer Secretariat bans all-forms of gambling bonuses
Shutterstock

Brazil Consumer Secretariat bans all-forms of gambling bonuses

SENACON, the National Consumer Secretariat of Brazil, has issued an order demanding that all forms of customer incentives, such as bonuses and sign-up offers, be excluded from regulations related to gambling activities.

Filed as Order No. 2,344/2024, SENACON has mandated the removal of gambling incentives “throughout the national territory, any advertising of rewards related to advances, upfront payments, bonuses, or prior advantages, even under the guise of promotions, marketing, or advertising, for the purpose of placing bets.”

The order further requires the suspension of “any advertising of fixed-odds online betting games (bets) targeting children and adolescents.”

Operators are obligated to submit a transparency report within 10 days, detailing the measures taken to comply with the suspension of bonuses and rewards. Failure to adhere to the measure will result in a daily fine of R$ 50,000 (approximately €8,000).

The measures apply to all active operators listed among applicants seeking participation in the betting market, as outlined by the Secretariat of Prizes and Betting (SPA/MF).

The directive to eliminate all forms of bonuses was signed by Vitor Hugo do Amaral Ferreira, director of SENACON, acting as the consumer protection advisor for Brazil’s Ministry of Justice and Public Security (MJSP).

In addition to SENACON’s order, the use of welcome bonuses and sign-up incentives had already been prohibited by Ordinance No. 615 of the SPA and Ministry of Finance.

Published in April as the “Ordinance on Payments,” the SPA and MF clarified: “It is forbidden for the operating agent to grant, in any form, advancement, anticipation, bonus, or prior advantage, even if merely for promotion, dissemination, or advertising, for placing bets.”

In further developments related to the launch of the Bets market, Regis Dudena, President of the SPA, announced yesterday that the secretariat had initiated the final procedures for licensing operators.

The SPA will announce all qualified operators by the end of December. These operators will then have a 30-day period to fulfill the final authorization requirements, which include the payment of an upfront R$30 million (€5 million) concession fee and the completion of checks on certified platforms.

Check Also

SBC News GTI scrutiny could expose Brazil Bets to 'Retroactive Taxes'

GTI scrutiny could expose Brazil Bets to ‘Retroactive Taxes’

A further tax conundrum is emerging for licensed operators in the newly launched Brazil Bets …

SBC News SPA assigns 'GTI unit' to scrutinise fiscal compliance of Bets

SPA assigns ‘GTI unit’ to scrutinise fiscal compliance of Bets

The Secretariat for Prizes and Betting (SPA) has established a new ‘strategic unit’ to oversee …

SBC News Regis Dudena: SPA needs specific tools to protect Brazil's poor from gambling harms

Regis Dudena: SPA needs specific tools to protect Brazil’s poor from gambling harms

Regis Dudena, the President of the Secretariat of Prizes and Betting (SPA), has endorsed the …