The proposal by Treasury Minister, Fernando Haddad, to restrict advertising by bookmakers on open television stations generated concern in at least three of the country’s five largest networks.
Record, Band and RedeTV! are the most impacted by the measure, as they have significant partnerships with betting companies, and depend on the amounts paid to enable the transmission of sporting programs and events.
Financial impact on TV stations with possible restrictions related to betting
Record is among the most affected. A betting house sponsors prominent programs on the network, such as the reality show A Fazenda 16 and the broadcast of sporting events, including football games.
On the other hand, executives from Band and RedeTV! claim that Haddad’s proposal could make the broadcast of sporting events financially unfeasible.
According to executives, bets are currently the only companies that pay sufficient amounts to guarantee a profit from broadcasting rights.
Without these resources, the viability of such events would be at risk, especially considering the high costs involved in live streaming.
Globo’s positioning
Globo, Brazil’s largest television broadcaster, is observing the development of the situation with caution. Although it also has contracts with bookmakers to sponsor events such as the Brazilian Championship and reality shows such as Big Brother Brasil, the broadcaster is still waiting for further definitions from the government before taking any action.
Globo’s concern is based on data that indicates a relatively small participation of bets in general publicity on open TV. A study by Tunad, an advertising campaign monitoring platform, revealed that, between January and July this year, bets represented just 3% of total TV ads.
However, this percentage increases significantly between sports programs. Consequently, it represents 30% of advertising. In other words, in sports-related events, half of the commercials are from betting houses.
Discussion in the Government and expectations
Minister Fernando Haddad highlighted the urgency of measures to limit what he described as “television harassment”. “We understand that it is urgent to take measures to avoid this harassment on television and in the media”, stated the minister.
Representatives from Conar (Advertising Self-Regulation Council), Abert (Brazilian Association of Radio and Television Broadcasters) and AIR (International Broadcasting Association) debated the proposal at a meeting.
During the meeting, it was agreed that only companies authorized by the Ministry of Finance will be able to broadcast advertisements on Brazilian broadcasters.
Flávio de Lara Resende, president of Abert, reaffirmed the broadcasters’ commitment to following this guideline. “Under no circumstances will we advertise companies that are not regular”, guaranteed Resende.