Brazil Tightens Gambling Ad Rules Amid Black Market Concerns

In May, Brazil’s Senate approved a new set of restrictions on betting advertisements, including a significant measure banning the use of influencers in gambling promotions. The move follows months of political and public scrutiny over influencer involvement in the burgeoning regulated betting industry, which officially launched earlier this year.

The role of influencers in gambling marketing has been a central issue for Brazil’s Parliamentary Inquiry Commission (CPI), formed to investigate the social and economic impacts of betting. The CPI’s findings prompted debates over consumer protection, advertising ethics, and the line between legal and illegal gambling promotion.

In June, Lucimério Barros Campos, the police chief of Alagoas state, accused influencer ads of misleading the public. The CPI’s final report, led by rapporteur Soraya Thronicke, recommended indictments against high-profile Brazilian influencers Virgínia Fonseca and Deolane Bezerra for alleged fraud and participation in illegal gambling schemes. The indictments were ultimately rejected, and the report itself failed to pass—making it the first CPI in a decade to be formally dismissed without adoption.

 

Brazil Tightens Gambling Ad Rules	Influencer Ads Under Scrutiny	Black Market Threat Grows	Legal Operators Warn Restrictions	Responsible Gambling Promotion Needed
New Senate laws in 2025	CPI investigates influencer impact	Illegal betting market expands	BetMGM voices concerns	Focus on player protection

 

The Developments

Among the report’s unfulfilled recommendations was a proposed ban on the popular “Fortune Tiger” online slot game, criticized for its role in aggressive influencer-led marketing campaigns. Despite the CPI’s failed conclusions, momentum for tighter regulation persisted. The Senate’s decision to prohibit influencer-led betting ads reflects that ongoing legislative pressure. However, some stakeholders warn the new restrictions could have unintended consequences. Eduardo Ludmer, head of legal at BetMGM Brazil, expressed concern that banning influencer partnerships may weaken the appeal of licensed operators, potentially driving consumers to the unregulated black market.

“Imposing excessive restrictions on influencers who work with legal operators may inadvertently empower the very market we aim to suppress: the illegal sector,” said Ludmer. He added that black-market operators typically lack oversight, disregard player welfare, and threaten the legitimacy of Brazil’s regulated betting system.

Ludmer also emphasized the potential benefits of responsible influencer engagement. Citing a study by the Brazilian Institute of Responsible Gaming, he noted that 78% of Brazilians have difficulty distinguishing between legal and illegal betting sites. According to Ludmer, this gap underscores the need for clear, regulated communication to educate consumers. “The use of influencers in the betting industry requires a high level of responsibility,” he said, adding that well-regulated influencer campaigns could help reinforce responsible gambling messages and distinguish licensed platforms from their illegal counterparts.

 

Imposing excessive restrictions on influencers who work with legal operators may inadvertently empower the very market we aim to suppress: the illegal sector, which operates without accountability and undermines player protection.

 

The Future

The regulated sector is facing other headwinds, including a proposed tax increase to 18% of gross gaming revenue (GGR). Industry experts warn that mounting regulatory burdens, combined with restrictive advertising rules, may erode the competitiveness of licensed operators. According to Ed Birkin, managing director at H2 Gambling Capital, approximately 30% of Brazil’s betting market remains offshore. For legal operators, this represents a persistent challenge in terms of market share and consumer trust.

Ludmer argues that effective channelisation—encouraging users to migrate to the legal market—is critical to the long-term health of Brazil’s regulatory model. “A sustainable regulatory environment requires a balance between taxation, offer attractiveness, and mechanisms to combat illegality,” he said.

As the government tightens its grip on gambling advertising, Brazil’s betting sector finds itself at a crossroads. The next phase of regulatory development will likely determine whether the legal market can thrive—or whether overly rigid controls push consumers further into the shadows.