Dispute Resolution | Online Betting and the Consumer: 5 Key Points to Minimize Legal Risks

The rapidly expanding online betting market in Brazil is facing increasingly complex legal challenges. The clash between the pursuit of profitability and the need to protect consumers exposes platforms to a high risk of lawsuits and administrative proceedings.

To navigate this challenging scenario and ensure business sustainability, betting platforms must adopt a proactive stance aligned with the principles of the Consumer Protection Code and Law No. 14.790/23.

In this sense, 5 key points stand out to minimize legal risks:

1. Clear and Robust Terms of Use: Platforms should create clear and accessible terms of use, regulating all aspects of the service provided, especially cases of suspension or permanent banning of the user. The greater the level of detail in the platform’s policies, the greater the security companies will have in the event of litigation. It is also important that the policies are always aligned with the general principles of the Consumer Protection Code. Finally, the use of the platform should be conditioned on the acceptance of the terms of use.

2. Exceptional Balance Retention: The retention of values deposited by users should only occur in exceptional cases, expressly provided for in the platform’s policies. In addition, the consumer must be notified of the infraction that led to the retention of values, with a clear explanation of the reasons.

3. Effective Customer Service: The platform must provide customer service channels, ensuring that demands are handled transparently, promptly, and efficiently, while also respecting the user’s privacy.

4. Responsible and Transparent Advertising: Advertisements must: (i) be easily identifiable as such (for advertisements made by influencers, an explicit mention of the terms “advertising”, “paid partnership” or other is recommended); (ii) contain the name of the responsible advertiser, the authorization/license granted, contact information and information about the customer service channel; (iii) refrain from presenting misleading information about the probability of winning or exemption from risk; (iv) not be directed at children; (v) refrain from associating bets with success and encouraging exaggeration; and (vi) contain a warning clause. It is recommended to read and comply with the rules of Annex X of CONAR and Ordinance SPA/MF 1.231/2024.

5. Complete and Accessible Information: Consumers should be adequately informed of the conditions and requirements for settling forecasts and receiving prizes, as well as the risks of losing the amounts bet and pathological gambling disorders.

The success of online betting platforms in Brazil is intrinsically linked to their ability to operate in compliance with current legislation and to protect consumers’ rights. By adopting transparent practices, providing efficient service and investing in responsible advertising, companies not only minimize legal risks but also consolidate their reputation in the market, retaining customers and contributing to a safer and fairer betting environment.

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