Brazil Senate: Ban loyalty, refunds in online betting
The regulatory landscape in Brazil faces a new challenge with the introduction of a bill in the Senate that seeks to drastically restrict user incentive and retention mechanisms on betting platforms. The proposal, submitted on March 9 by Senator Eduardo Girão (Novo-CE), aims to eliminate fundamental loyalty marketing tools, such as cashback systems, reward programs, and any promotion conditioned on prior deposits.
Scope of the proposed restrictions
The legislative text intends to ban a wide range of operational strategies designed to encourage player recurrence:
- Loyalty and reward programs: Rewards based on the volume of activity or gambler behavior are prohibited.
- Gamification: The project seeks to eradicate mechanics that stimulate the constant repetition of bets.
- Personalized marketing: The sending of messages or notifications based on user behavior that urge them to resume activity or increase their financial exposure would be prohibited.
- Protection for at-risk players: Operators would be obliged to implement systems that prevent marketing communications from reaching profiles identified with high-risk patterns.
Rationale for the initiative
Senator Girão, a recognized critic of the sector, argues that these mechanisms do not constitute legitimate benefits for the consumer. According to the parliamentarian, it is a structured strategy to prolong individuals' stay in an economically unfavorable activity, functioning as tools for permanent inducement to spending.
Girão maintains that, given the current prohibition of prior welcome bonuses, operators have shifted towards indirect incentives that maintain a continuous cycle of losses for citizens.
Next steps and implementation deadlines
The legislative proposal still needs to begin its discussion process in Senate committees. If approved and enacted into law, sportsbooks will have a period of 90 days to dismantle their incentive programs and adjust to the new operational restrictions. It should be noted that the current document does not detail specific penalties for those who fail to comply with these measures.
Tags: Brazil, online betting Brazil, Brazil betting regulation, casino loyalty programs