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Foto: Marcelo Camargo/Agência Brasil

The regulation of sports betting has significantly impacted the way clubs, championships and federations deal with betting companies behind the scenes. Especially when it comes to advertising and brand activations.

Recently, on February 7, the National Advertising Self-Regulation Council (Conar) introduced an annex dedicated exclusively to the regulation of advertising by betting companies. Thus, directly affecting sporting entities.

According to Fernanda Meirelles, lawyer and partner at FAS Advogados, the content of this document is similar to regulations that have long been established in the advertising market, such as drinks.

In the case of non-compliance with advertising rules, the sanctions imposed are of an administrative nature, and may include the removal of certain advertisements from the air or the request for changes to gifts distributed to fans in stadiums, as well as in the clubs’ promotional actions.

A fundamental rule is that such activities are not intended for minors. Furthermore, anyone can send complaints to Conar, which, in turn, does not have the power to impose fines, a prerogative of the Ministry of Finance.

Clubs must evaluate sponsorships from sports betting houses

To date, the Federal Government has not yet determined how this penalty will be carried out. However, clubs and federations may be subject to fines.

The law stipulates that only companies registered in the country can operate in Brazil, and advertising by entities not authorized by the government is prohibited.

Therefore, it is up to the clubs to evaluate the sponsorships they accept and whether the companies comply with the legislation.

Therefore, those who explore the Brazilian market without a license will be committing an illegal activity, including both the company in question and third parties involved.

Although it is not yet clear whether the Ministry of Finance will fine the clubs, it will seek to hold everyone involved in this practice accountable.

In other words, even if clubs do not receive fines directly, they will face indirect punishments. Banning advertising may affect revenue from sponsorships.