Brazil's gaming sector remains in disarray following President Lula's provisional criminalization of gambling – with the TV industry now also preparing for the potential ramifications.
Indeed, the Brazilian Association of Radio and Television Broadcasters (ABERT) has now formally warned its members against continuing to run betting advertisements, explaining further that it is considering submitting a lawsuit against the government's provisional ban.
The potential lawsuit, however, would not be submitted in protest of the decision – but rather to ensure the protection of the association's rights and the rights of its member network.
As part of its full statement, ABERT outlined: "In view of the immediate entry into force of the ban, ABERT recommends that broadcasters immediately stop new advertising and sponsorship of bets or, in the face of any operational impossibility, as soon as possible, with a limit on the full withdrawal of advertising material and sponsorship signs until October 5."
Further, discussing the potential legal action currently being considered, the association stated: "The measure safeguards content published, disclosed or displayed before the publication of the MP in which advertising or commercial advertising of betting appears in an accessory way. Failure to comply with the new rules is qualified by the MP as abusive advertising and subjects offenders to the administrative sanctions provided for in the Consumer Protection Code, without prejudice to civil and criminal liability.
"The new rules have immediate impacts on advertising and sponsorship contracts currently held by broadcasters with betting companies. ABERT is analyzing the effects of the Provisional Measure and will evaluate the adoption of any appropriate measures for the protection of the rights and interests of its associated broadcasters."
Following the implementation of Brazil's betting ban, which is currently set for October 6, regulated gambling in Brazil would have lasted just 22 months. The industry reaction to President Lula's announcement that Brazil plans to axe the gambling industry has differed on a global scale, with the likes of Entain and Kambi rushing to reassure shareholders of limited financial impact – while Betano is reportedly preparing legal action to protect its rights under the five-year license agreement.
The nation's football industry has warned of annual losses in revenue upwards of $80m following Brazil's gambling ban
