As Brazil prepares to launch its regulated iGaming market on January 1 2025, the government’s evolving regulatory framework is set to pose challenges for gaming affiliates and operators. The latest update from the National Consumer Secretariat (Senacon) reveals that bonus promotions will be banned in Brazil — affecting how operators and affiliates market to consumers.
The measure, which is designed to protect vulnerable groups and minimize problem gambling risks, has begun to set the tone for what many believe will become one of the world’s largest, and most competitive gambling markets.
Already, over 180 brands are attempting to receive online gambling licenses in Brazil. For affiliates, banning bonus promotions presents a clear challenge in terms of how they will promote operators on site and beyond.
How the bonus ban will impact affiliates
Bonuses —whether free bets, matched deposit bonuses, or free spins— have long been a crucial part of lead-generation campaigns, both for operators and affiliates. However, Senacon has announced a complete ban on bonuses, introducing fines of BRL 50,000 (approximately $8,672) per day for non-compliance.
The ban applies to all operators who want to join Brazil’s regulated betting market. This is defined by the Secretariat of Prizes and Betting (SPA/MF). The directive was signed by Senacon’s director and consumer protection advisor, Vitor Hugo do Amaral Ferreira, who personally advises the Ministry of Justice and Public Security.
This builds on a previous directive —Ordinance No. 615— which prohibits all forms of welcome bonuses, stating:
“Operators are forbidden to grant, in any form, advancements, bonuses, or prior advantages, even for promotional purposes, related to betting.”
In an already overly-competitive market, affiliates now face the additional challenge of finding new ways to create value for operators, and attract Brazilian players. It also remains to be seen how (if at all) loyalty and VIP schemes will work— and Senacon may well take a similar stance as the UK, which effectively outlaws such programs.
Plenty of opportunities remain, despite challenges
Despite regulatory hurdles, like the ban on bonuses, Brazil remains a highly-promising market for affiliates. With a population of more than 200 million, and a culture that focuses itself on sports, betting, and gaming, the country offers a significant opportunity for those who’re able to master it.
While the bonus ban will have a clear impact on how affiliates can market to potential consumers, there remain numerous strategies —including creating educational resources, influencer partnerships, and personalized pre/post-match analysis— that are likely to prove effective.
Affiliates who will succeed in Brazil will also need to stay ahead of the game —and competitors—by being informed about policy changes, which we could well see more of before the year is up. Innovative and out-of-the-box marketing strategies are also likely to succeed.