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Brazil authorities draws a line on social gambling features

Rio de Janeiro, Brazil
Credit: Donatas Dabravolskas / Shutterstock

The Secretariat of Prizes and Betting (SPA) of Brazil will move to impose restrictions on the use of social interaction features and engagement mechanisms by licensed online gambling platforms.

The inbound restrictions were confirmed to operators licensed under Brazil’s Bets regime via an SPA notice, issued in its capacity as the governing authority for gambling under the Ministry of Finance.

The decision follows a query submitted by Kaizen Gaming, which sought to clarify whether its flagship brand Betano could apply “social interaction” features to engage with registered customers.

The submission detailed that Betano sought to activate features of an “integrated social environment” within its online platform, available exclusively to registered users.

Betano sought to allow customers to share betting slips, reference favourite casino and slot games, and display customer wins under user profiles.

However, the SPA rejected the proposal, concluding that such functions are incompatible with the regulatory framework governing the compliance of online gambling platforms.

Of significance, the SPA deemed that the functions sought by Betano could exert undue influence on customers to gamble or shift their behaviour towards riskier play.

According to the SPA, the publication of betting slips, casino wins or gambling activity constitutes a form of data sharing between users, regardless of whether direct communication takes place. As such, the regulator determined that social media-style functions fall within the scope of the existing prohibition.

Social engagement features could encourage longer playing sessions and higher levels of engagement by mirroring behavioural features commonly associated with mainstream social media platforms.

The response, signed by Renato Perez Pucci, General Coordinator of Betting Supervision, stated that Ordinance SPA/MF No. 722/2024 expressly prohibits the incorporation of social interaction tools on digital betting platforms.

The SPA response concluded by warning that “operators found to be in breach of the ordinance could face administrative sanction proceedings.”

As it stands, the framework of the Bets Law allows online gambling platforms to maintain loyalty programmes and reward schemes for customers.

However, these schemes must follow strict guidelines and cannot incentivise a customer to play more or change their gambling habits, as set out under Article 42 of Ordinance SPA/MF No. 1,231/2024.

The SPA made clear that its interpretation should be regarded as guidance for all licensed operators under the Bets regime, and not just Betano and Kaizen Gaming.

The ruling will form a further adjustment for licensees of the Bets market, which continue to revise customer engagement mechanisms after welcome bonuses and incentives were banned from the outset of the market on 1 January 2025.

The rules and guidelines governing Brazil’s Bets framework are likely to undergo further revision before the end of 2026, as President Luiz Inácio Lula da Silva‘s government and political blocs in both the Chamber of Deputies and the Senate remain dissatisfied with the current framework and its consumer protection safeguards.

Both houses of Congress are reviewing a series of legislative proposals that would amend the Bets Law, introducing stricter licensing and compliance requirements, tighter advertising controls and new responsible gambling provisions. Among the measures backed by President Lula are proposals to prohibit gambling with borrowed money or credit and to strengthen protections for vulnerable consumers.

Bets licences, have been given notice to to prepare for full-scale overhaul of the Bets Law market to be embraced as of 2027, following the conclusion of the 2026 general election.