Pompilio explained that the private entity works in partnership with the Secretariat of Prizes and Betting (SPA), a federal government agency that oversees the sector, to adapt to the new reality of digital communication and the legalization of betting.
“A ‘system of consequences’ is being developed in which [problematic cases identified by Conar] will generate a list for the Secretariat, which has police powers, so that further measures can be taken. Most likely, the consequence, in addition to a fine, will be the suspension of the [betting company’s] license,” he said.
In response to the rapporteur of the Parliamentary Inquiry Committee (CPI), Senator Soraya Thronicke, Pompilio stated that “there is not yet a finalized and aligned system of consequences” with the SPA to curb abuses by influencers in promoting bets. Advertising rules in the sector are based on Law 14.790 of 2023 and Ordinance 1.231 of July 2024, issued by the Ministry of Finance. Prohibitions include, for example, making false profit promises or targeting children.
Conar, in turn, is a private nonprofit self-regulatory body — in which industry players agree to abide by its rules and decisions. Pompilio clarified that the organization judges advertising materials (which may be maintained, altered, or suspended), rather than sanctioning individuals, such as through fines.
The testimony was given at the request of Senator Izalci Lucas, who chaired the meeting (REQ 116/2024 – CPI on Betting). According to Izalci, some experts consider Conar’s role “ineffective in curbing abusive betting advertisements,” even after the creation of a specific annex to Conar’s code for the betting sector in 2023.
Prohibition
Senators Eduardo Girão and Damares Alves declared that they oppose advertising in the betting sector. Damares is the rapporteur of Bill 3.563/2024, which addresses this topic and includes a version that bans betting ads.
In Pompilio’s view, regulated advertising has the advantage of making it clear to the public which companies are authorized by the federal government, in contrast to illegal ones.
“A path toward a complete ban could lead to much more confusion and harm, because it leaves a dark, open field for those who want to operate illegally. Eighty percent of the complaints we receive, whether from consumers or other betting companies, are about unauthorized operators. That is the problem.”
Influencers
Pompilio said digital influencers play a critical role in Conar’s difficulty managing advertisements. According to him, under current legislation, influencer marketing falls under Conar’s purview. However, it is necessary to “broaden the ecosystem” to make regulation effective.
As a solution, Pompilio stated that Conar seeks to provide “ethical training” to influencers, grant them “certification,” and make them aware of their legal responsibilities and potential penalties.
“When we have this framework well structured, it will be easy for a betting company to know which influencers have received ethical training and understand the system of consequences. If they don’t follow the rules, they simply won’t be hired [by the betting company].”
“If an influencer realizes they are advertising an unauthorized betting company, the immediate consequence is that they will no longer be hired by brands that want professionals who comply with responsible advertising standards.”
The Conar representative also explained that the organization uses a contracted platform that employs artificial intelligence to “monitor all existing advertising. While the “system of consequences” with SPA is not yet operational, Conar’s actions are limited to private actors who already submit to its oversight, including social media platforms.
“We are able to ask the advertiser to remove [an ad that violates the law]. If they don’t, we ask the influencer. If [the influencer] doesn’t comply, the platform has to remove it. There are currently very few cases in which Google or Meta do not comply. [As for illegal bets,] I can’t control a company that was created in Asia, but [...] they still reach adolescents.”
Source: GMB
