In Brazil due to new regulatory requirements, Google has made significant changes to its Google Ads policy for sports betting and gambling.
Major changes
Google Ads allowed online gambling advertising in Brazil for operators licensed by the Brazilian Ministry of Finance (MF) and certified by Google Ads. However, sports betting advertising now also requires such a license.
Information in Google Help Center until October 1, 2024:
And after the new regulations are adopted:
- Authorization Requirement: Advertisers must now confirm that they have requested authorization from the Brazilian Ministry of Finance to provide online betting or online gambling services.
- Certification process: To continue to advertise after September 30, 2024, advertisers must apply via a special Google form and obtain the appropriate certification.
- Re-application for existing operators: Existing horse racing and lottery operators must re-apply for certification to retain the ability to advertise in Brazil.
- Ban on aggregators: Gambling aggregators of any type will no longer be allowed to advertise.
How to get admission to advertising
The process includes the following steps:
- Submitting a request for authorization confirmation to the Brazilian Ministry of Finance.
- Completing Google’s online gambling application form.
- Possible review of the advertiser’s websites and applications to ensure compliance with Brazilian law and Google’s policies.
Implementation timeline
Stages of implementation of the new law in Brazil:
“Only companies that are already operating and have requested authorization by September 30, 2024 can continue to operate until December 2024. By January 1, 2025, only fully compliant companies will be able to continue operating,” according to a statement from the Secretariat of Prizes and Betting (SPA)
Starting from January 1, 2025, only authorized operators will be able to operate in Brazil. These operators will have to use a Brazilian internet domain with the extension “bet.br”.
Also, companies that have not requested authorization will be prohibited from offering their betting services from October 1, 2024. However, these companies will have to keep their websites working until October 10, 2024, so that users can withdraw deposited funds.
The licensed companies will have to pay a license fee of $6 million to start their operations.
From January 2025, licensed operators will have to comply with all rules regarding fraud prevention measures, anti-money laundering, and ad compliance.
What will change for advertisers
- Reduced competition: Due to stricter requirements and the ban on aggregators, the number of advertisers in this area may decrease, leading to changes in the cost and reach of advertising.
- Complication of compliance procedures: Advertisers will have to go through both Google’s certification process and the Brazilian government’s authorization procedures.
- Potential market exit: Smaller operators or those unable to comply with the new requirements may be forced to stop advertising or exit the Brazilian market.
- Changing marketing strategies: Due to the restrictions imposed on Google Ads, some operators may start to look for alternative marketing channels to reach Brazilian customers.
Regulatory Requirements: https://www.gov.br/…solicitaram-autorizacao
More information on Google News and Google Help Center.
