Gambling ads cause problems for Google, TikTok and Facebook in Brazil
Just days after the streaming platform was sailing Italy over gambling ads, Facebook, Google and TikTok are now in trouble elsewhere. Brazil has also targeted social media and tech giants over the same issue.
The Ministry of Finance (MoF) has issued notices to the three companies for non-compliance with established Gambling Advertising guidelines. The ministry has previously held four meetings with the companies to emphasize the need for compliance. However, ongoing breaches have led to further action, media outlet Olhar Digital reported.
The Treasury Department found that a significant portion of communications, advertising and marketing activities in the sports betting sector did not comply with applicable regulations. In particular, most media broadcasts do not mention any age restrictions or warning clauses.
The ministry also found a lack of clear age verification mechanisms to allow minors to easily access and interact with sports betting platforms. This raises concerns about underage gambling.
What’s next
In response to these violations, the ministry has directed the tech giants to take immediate corrective measures to ensure compliance with the laid down guidelines. This includes including clear age restriction notices and warnings in all sports betting advertising, particularly on social media platforms and online platforms.
The Treasury also warned companies that further violations could result in administrative sanctions. This could include fines and possible removal of its platform from the Brazilian market.
The move is intended to set a precedent for other tech companies operating in Brazil and encourage them to prioritize responsible advertising practices. This is in line with a regulation that establishes a regulatory framework for the certification of sports betting sites and sets out the Responsible Gambling Code to promote safe and ethical gambling practices.
The regulations prohibit sports betting advertising in schools and colleges and ensure that teenagers are not exposed to gambling messages prematurely. A clearly visible warning or prohibition seal is also required to indicate that the advertisements are not suitable for minors.
Furthermore, the regulation prohibits any information that refers to gambling as a source of income, an investment or a means of compensating for financial losses or unemployment. This is essential to prevent individuals from gambling in order to recoup losses or resolve financial difficulties.
The regulations also ban the use of sexual attractiveness or virtues such as courage and maturity in gambling advertising. These strategies can target emotional triggers and exploit vulnerable populations, further reinforcing the need for responsible marketing practices.
Influencers have less influence
To curb misleading advertising and unrealistic expectations, the regulations also prohibit marketing that falsely increases the likelihood of winning or suggests that gambling is a path to personal or financial success. This also includes advertising with celebrities or influencers who support gambling activities.
This is in line with wider legislation covering influencers and their relationship with gambling in Brazil. Last Tuesday, the Communications Committee of Brazil’s House of Representatives approved a proposal requiring influencers to ensure that their videos, stories and other forms of communication do not promote unregulated gambling.
Influencers and social media platforms will face penalties if they do not comply with the new regulations. Influencers who break the rules face warnings or suspensions from their activities for up to six months, which can even be extended in some cases.
Social media platforms may also be held liable. If they allow influencers to promote unregulated gambling on their platforms, they could face fines of up to 2% of the company's revenue.
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Source: www.casino.org
