Brazil Bans Influencers from Promoting Gambling in Crackdown on Betting Ads
Brazil's Senate has tightened rules on betting advertisements, banning influencers from promoting gambling. The decision came in May 2023 after months of political debate and public scrutiny over the role of social media personalities in the country's regulated betting industry. Lawmakers have faced growing pressure to impose stricter controls on how gambling is marketed.
The move follows an investigation by the Parliamentary Inquiry Commission (CPI), which examined the economic and social effects of betting and influencer-driven promotions. The CPI's final report had recommended indictments against influencers Virgínia Fonseca and Deolane Bezerra for alleged fraud and illegal gambling activities. However, these proposals were ultimately dismissed. The commission also suggested banning the popular online slot game Fortune Tiger, but this recommendation was not adopted either.
Since Brazil's regulated betting market launched in December 2023, legal operators have seen their market share grow. Reports from the Secretaria de Prêmios e Apostas (SPA) and industry analyses show that licensed providers now hold over 70% of the market, up from 20-30% in 2023. Meanwhile, the illegal sector has shrunk from around 70-80% to under 30%.
Despite this progress, roughly 30% of Brazil's betting market remains offshore. Industry experts warn that overly restrictive measures could push consumers back toward unregulated operators. Eduardo Ludmer, head of legal at BetMGM Brazil, argued that banning influencer partnerships might weaken the competitiveness of licensed firms.
The Senate's new rules also come alongside a proposed tax hike on gross gaming revenue (GGR), increasing it to 18%. Critics claim this could further strain legal operators, making it harder for them to compete with black-market alternatives. The ban on influencer-led betting ads marks a significant shift in Brazil's approach to gambling regulation. With legal operators now dominating the market, authorities aim to curb unethical marketing practices while balancing economic concerns. The impact of these changes will depend on how effectively they reduce illegal betting without undermining licensed businesses.
