Brazil restricts social features on betting platforms

• Brazil’s SPA rejected Kaizen Gaming’s plan to add social features to Betano.
• The regulator cited an existing ban on social interaction tools under Ordinance 722/2024.
• Loyalty programs remain permitted if they do not encourage additional play.

Brazil’s Secretariat of Prizes and Betting (SPA) has ruled that Kaizen Gaming’s Betano brand cannot introduce social sharing features on its licensed platform.

The regulator concluded the proposal falls outside the current framework and could encourage riskier gambling behavior. The ruling applies to every operator licensed under Brazil’s Bets regime, not just Betano.

What Betano proposed

The decision follows a direct request from Kaizen Gaming, which asked the SPA whether Betano could build tools around an integrated social environment for registered users.

The proposed features included sharing betting slips, highlighting favorite casino and slot games, and displaying customer wins on user profiles. The plan stopped short of direct messaging but would have created a visible social layer over the betting product.

The SPA did not treat the request as a marginal question. It determined that even passive sharing of betting slips and wins counts as a form of data exchange between users.

A related technical circular from the SPA also flagged leaderboards that rank users by winnings, wagering volume, or time spent betting, treating them as a gamification tactic covered by the same prohibition.

No room for exceptions

The regulator grounded its refusal in Ordinance SPA/MF No. 722/2024, which expressly prohibits social interaction tools on digital betting platforms. It confirmed the position is not specific to Betano, and applies market-wide.

Renato Perez Pucci, General Coordinator of Betting Supervision at the SPA, said:

“Operators found to be in breach of the ordinance could face administrative sanction proceedings.”

The statement leaves no room for ambiguity on consequences. Brazil’s regulated betting market opened on 1 January 2025, and the SPA has continued refining the rules operators must follow since.

Loyalty tools still allowed

The SPA’s position is not a blanket ban on all engagement tools. Operators can still run loyalty and rewards programs, but these must stay within the bounds set by Article 42 of Ordinance SPA/MF No. 1,231/2024.

Under that provision, loyalty programs cannot be used to increase play or alter customer gambling habits. The distinction is between retention tools that reward existing activity and features that could change behavior.

Social tools that make wins visible to other users, or allow betting slips to be shared, fall into the second category. The SPA views them as capable of intensifying play or encouraging others to gamble more.

High political stakes

The ruling arrives as Brazil’s government and lawmakers already review whether the Bets framework offers enough consumer protection.

Both the Chamber of Deputies and the Senate are examining proposals that would tighten licensing, advertising, and responsible gambling rules.

President Lula’s government has separately moved to limit gambling’s reach into household finances. Participants in the Novo Desenrola Brasil debt-relief program face a one-year block from licensed betting platforms, and a related measure bars credit-linked transfers used to fund bets.

Lula is campaigning for reelection ahead of Brazil’s October 2026 vote, and betting policy has become a recurring theme for him. Operators expanding engagement features in Brazil now have a clearer line to work within, and regulators have shown they are willing to enforce it quickly.