Brazil seeks ban cashback, VIP programs on betting platforms

Senator Eduardo Girão has introduced Bill 1018/2026, which proposes amendments to Law No. 14.790/2023. The bill targets common incentive mechanisms used by fixed-odds betting operators and could force companies to rethink key elements of their customer relationship management (CRM) strategies if approved.

The proposal for the bill aims at introducing an entirely new provision – the introduction of the New Article 29-A that would prohibit a number of widely used retention tools, including fixed and variable cashback bonuses, loyalty and VIP programmes, and reward programmes based on player activity or losses.

It would further prohibit gamification features designed to encourage user engagement, including missions, challenges, leaderboards, as well as tiered systems of progression.

The proposal would also place limitations on how operators communicate with their customers. The ability for betting companies to send customers personalised communications (such as emails or push notifications tailored to their specific betting histories) to encourage them to deposit additional funds would no longer be available.

According to Senator Girão, betting companies have shifted from traditional welcome bonuses to more indirect methods of user stimulation, creating what he describes as a continuous cycle of engagement for players.

If the legislation successfully passes through Brazil’s National Congress, it would be imperative for operators to adapt to comply with the new legislation. Operators would be allowed a 90-day grace period from the date of publication of the law to comply with the new regulations, which could rapid changes within the Brazilian iGaming market.


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