Brazil Cracks Down on Gambling Influencers Pushing Illegal iGaming

Social media influencers in Brazil set out to impact the public’s perception of gambling. These influencers have a lot of sway over their followers and use their social media feeds to portray themselves as living a glamorous lifestyle that often involves misleading and unrealistic promises of easy winnings to entice their followers into the industry.

There are those who promote legal iGaming platforms, but an increasing number of high-profile personalities have been linked to illegal operations, which has led authorities to take decisive action to better protect players and regulate the industry.

 The Law Takes Action

Brazilian influencer Emily Souza was arrested in June while on the run after being accused of promoting illegal gambling platforms and hoodwinking thousands of her followers with fake online casino ads promising staggering returns.

In August, Rio de Janeiro police apprehended 15 digital influencers on suspicion of illegally promoting online gambling, deliberately deceiving followers with empty promises of big wins, and laundering millions using shell companies.

The 15 accused encouraged their audience to play the popular online slot, “Fortune Tiger”, which is illegal in Brazil and typically accessed via apps from offshore casinos that do not have Brazilian licenses.

One of the influencers, MaumauZK, who was captured in the police operation, is known for his boastful videos depicting conspicuous luxury, humour and live gameplay. The problem is that he promotes brands without any licensing in the region.

‘Bad Influencers’ Trigger Extensive Crackdown 

All this has triggered a heavy-handed crackdown in Brazil, with authorities acting against these bad influencers who use their significant following to recruit unsuspecting gamblers with promises of quick, easy wins and the garish displays of opulence portrayed on their social media accounts.

In some cases, there is even outright fraud perpetrated via phantom sites that fail to ever pay out. One high-profile influencer was even said to have received a bonus after gamblers lost by following her ads.

 Gambling Company Execs Weigh In

Gambling company executives clearly see the issue of seemingly unaccountable influencers promoting illegal sites and fraudulent schemes as a serious concern, but warn that curtailing or banning these media-savvy personalities could push many players to the illicit market.

Eduardo Ludmer, BetMGM’s legal counsel, also cautioned against excessive restrictions on influencers, most of whom he said worked with licensed operators.

Instead, they propose greater oversight and integration with the police to curb the practice of illegal advertising, as to date, the few police initiatives undertaken have allowed bad influencers to continue with business as usual.

Betting influencers in Brazil have the means to significantly impact gambling companies’ profits, so it’s hardly surprising that they would vehemently object to unethical behaviour on the part of influencers, leaving it up to the authorities to act in the best interests of the consumer.