Google Ads updates betting policy for Brazil: new rules from September 30

In response to new regulatory requirements in Brazil, Google has announced significant changes to its Google Ads Gambling and games policy. These updates, set to take effect on September 30, 2024, will impact advertisers in the sports betting and online gambling sectors operating in the Brazilian market.

Google's policy update aligns with Brazil's new regulations on sports betting and online gambling. The primary changes include:

1. Authorization Requirement: Advertisers must now demonstrate that they have requested authorization from the Brazilian Ministry of Finance to operate online sports betting or online gambling services.
2. Certification Process: To continue advertising after September 30, 2024, advertisers must apply for and obtain certification through Google's online gambling application form.
3. Reapplication for Existing Operators: Current horse racing and lottery operators need to reapply for certification to maintain their ability to advertise in Brazil.
4. Ban on Aggregators: Gambling aggregators of any kind will no longer be permitted to advertise in Brazil after the September 30 deadline.

Impact on Different Sectors

Sports Betting and Online Gambling

These sectors face the most significant changes. Operators must prove they've requested authorization from the Brazilian government and obtain Google certification to continue advertising.

Horse Racing and Lottery

While the core requirements for these sectors remain unchanged, operators must go through a re-certification process with Google to ensure compliance with the new regulatory landscape.

Gambling Aggregators

This category of advertisers will be completely prohibited from advertising on Google's platforms in Brazil after the deadline.

Timeline and implementation

• Announcement Date: September 27, 2024
• Implementation Date: September 30, 2024

The short window between the announcement and implementation suggests that Google expects advertisers to act quickly to comply with the new requirements.

Certification process

Google has not provided detailed information about the certification process in the policy update. However, it's likely to involve:

1. Submission of proof of authorization request to the Brazilian Ministry of Finance
2. Completion of Google's online gambling application form
3. Possible review of the advertiser's websites and apps to ensure compliance with Brazilian law and Google's policies

Broader context

Google's policy update comes in direct response to Brazil's new regulatory framework for sports betting and online gambling. The Brazilian government's measures, announced on September 17, 2024, aim to create a more controlled and transparent betting market in the country.

Key aspects of Brazil's regulations that likely influenced Google's policy include:

• A transition period until December 31, 2024, for companies that have submitted authorization requests
• Requirement for operators to use the Brazilian internet domain with the extension "bet.br" from January 1, 2025
• A licensing fee of R$30 million (approximately US$6 million) for approved companies

Potential impacts on advertisers

1. Reduced Competition: With stricter requirements and the ban on aggregators, the number of advertisers in this space may decrease, potentially leading to changes in ad costs and reach.
2. Increased Compliance Burden: Advertisers will need to navigate both Google's certification process and the Brazilian government's authorization procedures.
3. Potential Market Exit: Smaller operators or those unable to meet the new requirements may be forced to cease advertising or exit the Brazilian market entirely.
4. Shift in Marketing Strategies: With limitations on Google Ads, some operators may explore alternative marketing channels to reach Brazilian customers.

Future outlook

As Brazil's betting market continues to evolve, further updates to Google's advertising policies may be necessary. Advertisers should stay informed about:

1. Any clarifications or adjustments to the certification process
2. Potential changes to ad formats or targeting options for gambling-related content
3. Updates to Google's policy as Brazil's regulatory framework is fully implemented in 2025

Key dates to remember:

• September 27, 2024: Google's policy update announced
• September 30, 2024: New policy takes effect
• December 31, 2024: End of Brazil's transition period for betting operators
• January 1, 2025: Full implementation of Brazil's new betting regulations

Google's policy update represents a significant shift in the advertising landscape for betting and gambling services in Brazil. As the country moves towards a more regulated betting market, digital advertising platforms like Google play a crucial role in ensuring compliance and supporting the transition to the new regulatory environment.

The Brazilian Ministry of Finance has announced strict new measures to regulate the sports betting and online gambling industry, set to take effect from October 1, 2024. This move aims to establish a more controlled and transparent betting market in the country.

Key changes in regulation

The Secretariat of Prizes and Bets (SPA) of the Ministry of Finance published Ordinance No. 1,475/2024 on September 17, 2024, outlining the new regulatory framework. The ordinance establishes conditions and deadlines for companies operating fixed-odds betting to comply with the new regulations.

According to the Secretary of Prizes and Bets, Regis Dudena, the primary objectives of these regulations are to protect the mental, financial, and physical health of bettors, and to prevent fraud and money laundering in the betting industry.

Deadline for authorization requests

Companies currently operating in the Brazilian betting market had until September 17, 2024, to submit authorization requests to the Ministry of Finance. Those who failed to do so by this deadline will face suspension of their operations nationwide starting October 1, 2024.

Transition period

The ordinance allows for a transition period until December 31, 2024, but only for companies that have already submitted their authorization requests. During this period, these companies must inform the SPA about their active commercial brands and the respective internet domains they use.

New operating requirements

Starting January 1, 2025, only authorized betting operators will be allowed to operate in Brazil. These operators will be required to use the Brazilian internet domain with the extension "bet.br".

Outright ban and withdrawal period

Companies that have not requested authorization are prohibited from offering fixed-odds betting services in Brazil from October 1, 2024. However, these companies must keep their websites operational until October 10, 2024, to allow bettors to withdraw their deposited funds.

Enforcement and penalties

The SPA will be responsible for enforcing these new regulations, in coordination with other relevant authorities. Companies found operating without proper authorization after October 11, 2024, will face blocking and removal of their betting apps and websites.

Impact on existing laws

The ordinance emphasizes that during the adjustment period, all existing laws remain applicable, including:

1. Law No. 8,069 of July 13, 1990 (Child and Adolescent Statute)
2. Law No. 8,078 of September 11, 1990 (Consumer Protection Code)
3. Law No. 7,492 of June 16, 1986 (Financial Crimes Law)
4. Law No. 9,613 of March 3, 1998 (Money Laundering Law)

Licensing fee and operational requirements

Approved companies will be required to pay a licensing fee of R$30 million (approximately US$6 million) to begin operations. From January 2025, they must comply with all regulations related to fraud prevention, anti-money laundering measures, and responsible advertising practices.

Google Ads policy update

In response to these new regulatory requirements, Google has announced an update to its Google Ads Gambling and Games policy for Brazil, effective September 30, 2024. Key changes include:

1. Advertisers must demonstrate that they have requested authorization from the Brazilian Ministry of Finance to run ads for online sports betting or online gambling services.
2. Advertisers must apply for and obtain certification via Google's online gambling application form.
3. Horse racing and lottery operators need to re-apply for certification to continue advertising in Brazil.
4. Gambling aggregators will no longer be allowed to advertise in Brazil after September 30, 2024.

Consumer protection measures

The Ministry of Finance emphasizes that these regulations aim to protect consumers by ensuring that betting operators adhere to strict standards of fairness and transparency. The new rules also include measures to prevent underage gambling and promote responsible gambling practices.

Economic impact

The Brazilian government expects the regulated betting market to generate significant tax revenue and create new job opportunities in the country. However, the full economic impact of these regulations remains to be seen as the industry adapts to the new operating environment.

Future outlook

As Brazil moves towards a fully regulated betting market, industry experts anticipate a period of consolidation as smaller operators either partner with larger companies or exit the market. The success of these regulations will likely be closely watched by other countries in Latin America considering similar measures.

Key Facts

• Deadline for authorization requests: September 17, 2024
• Suspension of unauthorized operators: October 1, 2024
• Transition period end: December 31, 2024
• Full implementation of new regulations: January 1, 2025
• Licensing fee: R$30 million (approx. US$6 million)
• Required domain extension for authorized operators: .bet.br
• Google Ads policy update effective date: September 30, 2024