Brazil’s draft betting crackdown would fine internet providers, app stores, and platforms for keeping banned gambling content online

Brazil’s federal government has put forward a provisional measure that would make internet providers, digital platforms, and app stores responsible for removing prohibited betting content, ads, and services. For high-risk operators and their PSPs, the important bit is not the political framing — it is the enforcement model: notice, takedown, fines, and, in repeated cases, suspension or even a ban on operating.

1. The measure creates a “duty of care” for internet application providers. In practice, social networks, digital platforms, content distribution services, and other online services would have to act to prevent the circulation of content related to services prohibited under the new legislation.
2. Providers could be held liable if they cannot prove they adopted adequate measures to stop that content from spreading. They would also have to remove posts or ads deemed irregular after notice from authorities in Brazil’s National Consumer Protection System or from the Ministry of Justice and Public Security.
3. The obligations also cover app stores and operating systems. These companies would have to block the availability of apps or services banned by the provisional measure, and remove them from circulation if notified by the government.
4. Penalties would be imposed by the Ministry of Justice, either separately or cumulatively. The list includes a warning with a deadline to fix the problem, a fine of up to 10% of the economic group’s revenue in Brazil in the last fiscal year, a daily fine while the violation continues, temporary suspension of activities, and prohibition from carrying on activities.
5. If there is no recorded revenue, the fine could range from R$ 10 to R$ 1,000 per registered user, capped at R$ 50 million per violation. The measure says the sanction will depend on the severity of the breach, the number of affected users, any economic advantage obtained, the company’s financial condition, repeat offenses, and cooperation with the authorities. The harsher penalties — suspension or a ban on operating — would apply only in cases of recurrence or repeated non-compliance after warnings or fines.

The provisional measure is part of the government’s package to end online betting and virtual casinos in the country. The text also sets a 120-day window for the Chamber of Deputies and the Federal Senate to vote on the measure before it can become permanent law.