Brazil’s Proposed Gambling Legislation: A Cautious Approach to a Growing Sector
Senator Humberto Costa has taken a significant step by introducing a bill that aims to elevate the legal gambling age in Brazil to 21 years. In addition to this age restriction, the bill introduces a host of limitations designed to address social concerns related to gambling.
The Key Provisions of PL 3,754/2025
The PL 3,754/2025 bill intends to modify various components of Law 14,790/2023, which governs fixed-odds betting within the country. A central feature of this proposal is a mandated maximum monthly betting limit for players, set at BRL1,518 (approximately $276), representing the minimum wage for one month. This cap applies to all licensed gambling operators, aiming to mitigate potential gambling-related financial distress among players.
Costa’s legislation also seeks to restrict gambling advertisements aggressively. Commercials will be prohibited on radio, television, and internet platforms outside the hours of 10 PM to 6 AM. The legislation goes further by banning sponsorships and brand representations in public sporting, cultural, and artistic events, effectively curbing exposure to gambling marketing in these widely attended settings.
Another critical aspect of the bill is its strict prohibition on advertising aimed at individuals under the age of 21 in educational institutions. This measure underscores the aim to protect vulnerable populations, particularly students, from potential gambling influences.
A Voice of Concern
During a recent Senate session, Costa was vocal about the urgent need for this legislation, describing it as a “wake-up call” in response to what he deems a social epidemic, particularly affecting youth. He emphasized the importance of focusing on education and personal growth rather than being lured by the false promises often associated with gambling.
The bill is currently awaiting further processing, and upon its ratification, its regulations would come into effect 90 days post-publication.
The Regulated Gambling Scene Under Pressure
The introduction of Costa’s bill is indicative of the growing scrutiny faced by Brazil’s then-nascent regulated gambling sector. Just this January, the sector was officially established, and it has since encountered various challenges, including a proposed tax hike from 12% to 18% on gross gaming revenue (GGR) for licensed operators. Congress is set to vote soon on whether to solidify this increase.
In addition, similar restrictions on advertising are under consideration following Senate approval, aimed at curbing excessive promotion of gambling-related activities.
Recently, Brazil’s Finance Minister Fernando Haddad expressed his willingness to support a complete ban on gambling should a proposal arise in the Chamber of Deputies. Echoing this sentiment, Costa articulated concerns regarding the negative implications of betting on society, linking the activity to addiction and other social issues.
The Debate Over Regulation vs. Black Market Growth
As the legislative landscape shifts, operators within the licensed gambling sector are becoming increasingly anxious about the ramifications of stringent regulations. There are fears that overregulation could bolster the black market, undermining the very purpose of creating a controlled and safe gambling environment.
Fernando Vieira of the Brazilian Institute of Responsible Gaming has pointed out that maintaining industry sustainability requires increasing the channels that fight against illegal gambling. He notes that the long-term health of the regulated market hinges on addressing and reducing illicit activities.
The debate surrounding Brazil’s gambling regulations reflects broader concerns about societal impacts, particularly on vulnerable populations. As lawmakers grapple with these issues, it remains to be seen how the balance between regulation and market viability will unfold in the coming months.