A new bill Brazilian federal deputy Kim Kataguiri brought to the country’s National Congress makes illegal gambling advertisements a crime and punishes anyone who carries this out with tough penalties. PL706-2025 amends Brazil’s Penal Code to criminalize posting ads for illegal betting sites. The law focuses on ads targeting vulnerable audiences, and penalties can extend up to eight years in prison.

If enacted, the legislation puts violators at risk of prosecution for promoting unlawful gambling activities. The minimum punishment includes a jail term of one to four years and possible financial penalties.

There would also be tighter sanctions in some instances, though. The penalty for ads aimed directly at children is double. The bill gives the same penalty boost for cases where operators employ marketing practices to exploit individuals facing economic hardship.

Likewise, public figures and net influencers who use their followers to promote illegal gambling businesses would also be liable to greater fines, plus anyone who earns a financial return based on a commission or percentage of proceeds generated by the illegal gambling business they publicize.

In his justification of the bill, Kataguiri referred to the dangers illegal gambling businesses pose, highlighting their capacity to exploit consumers and act as conduits for financial crimes such as money laundering.

“The regulation of gambling has been a recurring theme in Brazil, but the proliferation of illegal and unauthorized betting platforms poses serious risks to society,” Kataguiri said. “The creation of the crime of promoting illegal gambling, as per this proposal, is essential to curb the dissemination and incentive of activities that harm consumers, encourage money laundering, and exploit social vulnerabilities.”

Brazil offers subdued approach to gambling

Gambling advertisements have been contentious in Brazil, primarily since the government introduced new regulatory guidelines on Jan. 1, 2025. Various bills in the National Congress over the last few months of 2024 sought to implement stricter controls on gambling marketing.

Before officially opening the country’s licensed gambling market, Brazil’s gambling authority, the Secretariat of Prizes and Bets (SPA), added new restrictions in Dec. 2024. The limits included banning commercials aimed at children and young adults and commercial campaigns using photos, symbols, or themes appealing to children.

Despite government attempts to encompass the gambling business under its control, illicit wagering remains an emerging challenge. The National Telecommunications Agency (Anatel) confirmed it’s struggled with censoring access to illegal bookmaking websites the SPA highlighted.

Nevertheless, SPA chief Régis Dudena believes the new regime system will ultimately diminish the authority of illegal gambling syndicates. In interviews with EXAME on Jan. 3, Dudena stated he was sure that sooner or later, the cost and risk of operating in defiance of the law would be greater than the profit. He pointed to ongoing regulatory enforcement efforts and industry adjustments as key factors that will make illegal gambling increasingly unviable in Brazil.

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