Brazil’s regulated betting sector faces potential operational changes following the introduction of a new legislative proposal aimed at restricting how operators engage and retain users. Lawmakers are reviewing a measure that would significantly alter customer retention practices across licensed platforms.
Proposed restrictions reshape user engagement tools
Senator Eduardo Girão submitted Bill No. 1018/2026 to amend Law No. 14,790/2023, which established the country’s regulated betting framework. The proposal introduces a broad prohibition on mechanisms designed to stimulate or maintain user activity on fixed-odds betting platforms.
The bill outlines a ban on several widely used engagement features. Operators would no longer be allowed to offer cashback incentives, even in fixed amounts. Loyalty schemes, points-based rewards systems, and any benefits linked to accumulated losses would also be removed under the proposed changes.
Additional limits extend to promotional structures tied to player behavior. Offers dependent on deposits, maintaining account balances, or continued activity would fall under the ban. The proposal defines these as retention strategies that increase betting frequency or financial exposure.
Gamification elements would also be eliminated. Platforms would not be permitted to include missions, challenges, or ranking systems tied to player performance or activity. These features, commonly used to encourage repeated engagement, are identified as contributing to extended user interaction.
Communication practices would face new restrictions as well. The bill allows only messages classified as “informative, institutional or educational.” Personalized outreach based on individual betting history, including emails or push notifications encouraging deposits, would be prohibited.
Operators would also be required to provide transparency regarding algorithms that influence user recommendations or behavior on their platforms.
Regulatory intent focuses on behavioral risks
The proposal builds on earlier regulatory actions in Brazil, where welcome bonuses have already been banned. According to Girão, operators have shifted toward indirect methods to maintain engagement, replacing traditional promotional offers with more complex retention systems.
In explaining the motivation behind the bill, Girão expressed concern about the broader effects of legalized betting. He stated that the sector has “ushered in a scenario of profound social, economic and institutional concern”.
He further emphasized the structural nature of gambling-related risks, noting: “This is an activity whose very economic logic depends on the repeated loss of the user, which imposes on the State the duty to act firmly to mitigate its harmful effects,” Girão said.
The proposal also includes provisions for the Ministry of Treasury to establish technical criteria aimed at identifying compulsive behavioral patterns linked to betting activity. These measures are intended to strengthen oversight of operator practices and reduce potential harm.
Girão added: “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.”
Transition period and broader political context
If approved by the National Congress, the legislation would grant licensed operators a 90-day period to comply with the new requirements. During this timeframe, companies would need to adjust platform functionality, revise marketing strategies, and update contractual frameworks.
The proposal arrives during a period of ongoing debate around gambling regulation in Brazil. Political leaders continue to express differing views on the sector’s role and impact.
Recent remarks from President Luiz Inácio Lula da Silva, who described gambling addiction as a “tragedy,” have added to the discussion. His call for stronger action against online betting has drawn responses from industry representatives.
Ramiro Atucha, founder and CEO of Atucha Strategic Advisory, criticized the approach and warned of unintended consequences. He stated: “I struggle to believe that someone as smart as [Lula]
will not know that the players are going to end up in the unregulated market. All the problems they are listing are to do with unregulated operators, not with regulated operators.”
The progression of Bill No. 1018/2026 will determine whether Brazil’s regulated market undergoes another structural shift, particularly in how operators manage customer relationships and long-term engagement strategies.
Source:
New bill wants to ban cashback, VIP programs and gamification on betting platforms, igamingbrazil.com, March 16, 2026.
