YouTube Under Fire in Brazil for Illegal Gambling Ads

Gambling advertising is usually conducted through the entire spectrum of media or sponsorship deals involving sports personalities or specific events.

In recent years, we have seen the steady growth of gambling advertising due to the proliferation of online gambling platforms and the increased use of mobile devices.

Although not as rigidly regulated as alcohol or tobacco advertising, many countries have strict laws governing how gambling services may be marketed.

An Overview of Brazil’s Gambling Advertising Regulations  

Brazil’s gambling advertising rules are centred around the principle that all marketing should be guided by social responsibility and the promotion of responsible gambling, including the following:

Operators are prohibited from presenting gambling as “socially attractive”, and influencers and celebrities are forbidden from suggesting that gambling can lead to personal, social or financial success.

Regarding sponsorship deals, operators must clearly be identified as the sponsor and refrain from appealing to children.

Gambling companies are prohibited from advertising to children or adolescents and on platforms where minors make up the majority of the audience. Ads must also display an 18+ symbol or message informing players that games have a strict age limit.

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 YouTube Profiting from Illegal Gambling Ads

As Brazil strengthens its iGaming and gambling rules, YouTube, the world’s premier video platform, is reportedly benefitting from ads endorsing illegal online gambling sites. These ads appear on the platform despite Brazil’s legal framework and government agreements, putting digital oversight and consumer protection into question.

Brazilian regulations prohibit unlicensed operators from advertising gambling services, yet many unlicensed operators appear in gambling ads on YouTube, often luring consumers with fraudulent cash incentives.

The registration process of these sites also usually circumvents identity or age verification, allowing minors to access gambling services. Clicking on these ads takes consumers to a virtual store, where they download an app linking them to illegal gambling sites. Once installed, only a phone number and password are needed.

Tracing these illegal operators isn’t always simple, as when one goes down, another with a somewhat different URL or business name substitutes it.

 YouTube is Currently Under Review 

With many of the sites declared unlawful by the Brazilian National Telecommunications Agency (Anatel), YouTube is examining flagged content and has indicated that it changed ad policies in September 2024. However, it hasn’t divulged how much money it has made and keeps accepting payments for these ads.

Advertising illicit sites could lead to fines of between R$50,000 and R$2 billion if Brazil’s Secretariat of Prizes and Betting (SPA) takes official action. It has been suggested that YouTube should employ stricter KYC rules for advertisers.

YouTube insists that Google Ads rules and Brazilian laws apply to all advertisers, but has nonetheless sharpened its advertising screening process. SPA, together with Conar and the Digital Agency, claim to have blocked 11,000 illegal sites so far.

Brazil did, however, take action against YouTube channels and accounts promoting illegal gambling in March. The National Secretariat for Sports Betting and Development of Sports (SNAEDE) identified and reported 53 YouTube accounts and 25 channels advertising unlicensed gambling platforms.

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 Brazil’s Shift to Legal Gambling

January 1st saw the official launch of Brazil’s regulated gambling market, with 71 companies initially receiving licenses to operate under the new framework from Brazil’s Secretariat of Prizes and Bets.

Industry insiders expect 2025 to be a year of consolidation for the industry, as regulators and operators adapt to the new rules and refine their practices.

2025 is expected to involve adjustments and possible upgrades of advertising restrictions, tax policies, and various enforcement measures to ensure the integrity of the industry, market stability, and the protection of consumers as Brazil’s gambling market continues to evolve.