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Senator proposes ban on cashback and gamification in Brazil betting sector

New bill would require operators to remove VIP programs and engagement mechanics within 90 days.

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Key Points
Bill proposes banning cashback, VIP programmes and gamification
Operators would have 90 days to comply
Ministry of Finance to define enforcement criteria

A new bill introduced by Brazilian Senator Eduardo Girão seeks to prohibit the use of cashback offers, VIP programs and gamification features across betting platforms in Brazil.

The proposal aims to amend existing legislation by introducing stricter controls on commercial practices used by fixed-odds betting and online gaming operators. 

If approved, companies would be given a 90-day period to adjust their platforms, contracts and promotional strategies.

The text outlines the previous definition of prohibited mechanisms, including loyalty programs, deposit-linked promotions and performance-based rewards. It also targets gamification elements such as missions, rankings and progression systems designed to increase user engagement or retention.

To justify the ban, Girão argues that such practices may influence player behavior by encouraging increased betting frequency, higher spending and longer periods of activity. 

He described the current regulatory environment as a source of "deep social, economic and institutional concern," citing risks related to debt and mental health.

The proposal also assigns a regulatory role to the Finance Ministry, which would be responsible for defining technical criteria to identify and restrict inducement mechanisms. 

Additional provisions include restrictions on personalized communications based on user behavior, as well as requirements for transparency around automated systems that may influence betting activity.

The bill comes amid broader discussions around betting regulation in Brazil, including parallel proposals targeting advertising restrictions and market oversight.

The proposal will first be reviewed by Brazil’s Federal Senate before potentially advancing to the Deputy Chamber for further consideration.

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Industry bodies warn that stricter restrictions could push users toward illegal betting markets that operate outside responsible gambling guidelines

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