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Brazil Launches Major Crackdown on YouTube Gambling Ads After Uncovering Widespread Fraud Scheme

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Brazil Launches Major Crackdown on YouTube Gambling Ads After Uncovering Widespread Fraud Scheme

Brazil‘s Sports Ministry has requested federal intervention to combat fraudulent gambling advertisements on YouTube after identifying more than 53 channels promoting deceptive betting schemes to audiences exceeding 100,000 viewers per broadcast.

On November 18, the National Secretariat for Sports Betting and Economic Development of Sports (SNAEDE) issued a formal request to the Ministry of Justice and Public Security (MJSP) to investigate influencer marketing practices and involve federal police in enforcement efforts.

SNAEDE’s investigation revealed operators using influencers to promote gambling sites that accept bets but fail to pay winnings before deactivating and disappearing with customer funds. According to iGaming Business (iGB), the case follows similar incidents involving Fortune Tiger, an Asian-themed slot game that drew scrutiny for influencer marketing practices in the Brazilian states of Paraná and Maranhão.

Sports Minister André Fufuca revealed in the request that “thousands of Brazilians” have been affected by these schemes. Secretary Giovanni Rocco, who assumed his role in September, noted that fraudulent sites use social media platforms and influencers to promote “quick gains and money to pay bills.”

iGB reports that the government has already taken steps to restrict gambling marketing through Normative Ordinance No 1,207, released on July 31. This ordinance prohibits operators from presenting gambling as a “socially attractive” activity through influencer or celebrity marketing.

This week, Brazil’s National Consumer Secretariat called for additional restrictions, including bans on gambling bonus marketing and advertisements targeting minors. The Federal Supreme Court has also implemented immediate restrictions on betting using social welfare, originally scheduled for January 2025.

Legal gambling operations in Brazil will commence on January 1, 2025, under new regulatory frameworks designed to ensure market transparency and consumer protection.

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David Adler is an entrepreneur and freelance blog post writer who enjoys writing about business, entrepreneurship, travel and the influencer marketing space.

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