Brazil Moves to Restrict Betting Incentive Tools

A new legislative proposal in Brazil could significantly alter how licensed betting operators engage with customers, with a focus on restricting tools commonly used to drive user activity. Senator Eduardo Girão has introduced Bill No. 1018/2026, which aims to amend the country’s existing betting framework under Law No. 14,790/2023.

The proposal would prohibit operators from creating or promoting mechanisms designed to encourage or sustain gambling behavior. This includes widely used retention strategies such as cashback offers, loyalty programs, and points-based rewards systems. If adopted, the bill would also outlaw promotions tied to deposits, account balances, or continued use of betting platforms.

The measure expands beyond financial incentives to include gamification features. Operators would no longer be allowed to implement elements like missions, challenges, or ranking systems that track player progress or activity. These features have typically been used to increase engagement and extend the time users spend on platforms.

Limits On Communication And Operational Changes

The proposed legislation also introduces restrictions on how operators communicate with users. Messages tailored to individual betting histories — such as emails or push notifications encouraging further deposits — would be banned. Under the bill, only communication deemed “informative, institutional or educational” would remain permissible.

Additionally, companies would need to disclose how recommendation algorithms influence user behavior, adding a layer of transparency to digital operations. Authorities would also require the Ministry of Treasury to define technical standards aimed at identifying patterns associated with compulsive gambling.

Should the bill pass, licensed operators would face a limited adjustment window. The proposal grants a 90-day transition period for companies to update their systems, marketing strategies, and contractual terms to comply with the new rules.

Lawmaker Cites Social And Economic Concerns

In presenting the bill, Girão argued that earlier restrictions on welcome bonuses have led operators to adopt indirect methods of incentivizing users. He claims these newer tactics create a continuous cycle of engagement that may heighten risks for vulnerable individuals.

Girão described the broader impact of legalized betting in stark terms, stating it has “ushered in a scenario of profound social, economic and institutional concern”.

He further emphasized the intent behind the proposal, saying: “Given this scenario, the approval of this proposal represents a necessary measure to mitigate the socially adverse effects of the activity, preserve the economic dignity of the Brazilian population, and improve the regulatory balance of the sector.”

Ongoing Debate Over Gambling Regulation

The bill arrives amid broader political divisions over gambling policy in Brazil. The issue has drawn attention at the highest levels of government, with President Luiz Inácio Lula da Silva recently urging collective action to ban online betting altogether. He characterized gambling addiction as a “tragedy,” intensifying the debate around regulation.

Industry representatives have pushed back against such positions. Ramiro Atucha, founder and CEO of Atucha Strategic Advisory, criticized calls for stricter bans and warned of unintended consequences.

As discussions continue, the proposed bill highlights growing scrutiny of how betting platforms operate and the balance policymakers seek between regulation and market stability.

Source:

“Senado Federal Projeto DE Lei N° 1018, DE 2026”, legis.senado.leg.br, March 2026