Brazil moves to ban cashback and gamification in betting industry
A bill has been introduced in the Brazilian Congress proposing to ban VIP programs, cashback, bonuses, and gamification mechanics in online betting. This marks a significant shift in player retention rules and could heavily impact marketing tools used in the iGaming sector.
The bill targets the prohibition of VIP user levels, bonus points, player rankings, cashback offers, deposit bonuses, and rewards tied to player losses. In addition, daily tasks, quests, and other gamification elements aimed at prolonging user engagement in betting apps will be restricted.
Furthermore, personalised push notifications and email campaigns based on players’ betting histories will also be limited. Operators may be required to disclose their recommendation algorithms to users.
If passed, licensed bookmakers will have just 90 days to revamp their platforms and CRM strategies, signalling major operational changes in the industry.
This legislative proposal reflects Brazil’s intent to tighten control over the online betting market, aiming to reduce addiction risks and create more transparent player conditions. It may also influence regulatory approaches in other countries moving forward.
