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MARKETING & AFFILIATES
when it comes to influencer advertising, which last year became a sector, and national media topic du jour.
The game Fortune Tiger faced huge controversy last year. Influencers were investigated, and in some cases arrested, after marketing the game to their followers and promoting attractive financial rewards. Many players ended up losing large sums of money playing the game on fraudulent sites.
Since the scandal, the SPA has taken steps to further restrict influencer advertising. Internet personality Virgínia Fonseca appeared in front of the parliamentary inquiry commission for betting in May to be questioned over advertising gambling to her huge online following.
Felipe Maia believes the SPA should crack down on those infringing upon current regulations.“ I think if we start to have these cases where digital influencers will be held liable, have to pay fines, and maybe be arrested for working with illegal operators or not complying with advertising rules, we will start to see different behaviours,” he insists.
OVERREGULATION RISKS EMPOWERING THE BLACK MARKET
The Brazilian gambling sector is by no means the only market experiencing pressure over its gambling advertising. Looking elsewhere at more mature markets, it’ s understandable there are fears over the consequences of further restrictions.
Germany, where nearly half of all players bet with the black market, has a ban on TV and online advertising between 9pm and 6am, as well as restrictions on showing sports clips in ads and partnering with sports personalities.
Italy, which has a blanket ban on gambling advertising, is experiencing serious black market issues, while Brazil’ s neighbour Argentina has also taken steps to introduce a ban on online betting advertising.
With licensed operators in Brazil already concerned by the presence of the black market, the industry fears more stringent regulations on advertising would only strengthen illegal companies, as seen in other nations.
“ Experience from countries like Italy shows that excessive restrictions and high taxes can backfire,” Garita explains.“ Blanket bans would significantly reduce the visibility of regulated operators, while illegal ones would continue to thrive through uncontrolled channels like Telegram.
“ If you have a market becoming regulated with too many restrictions for advertising, basically you’ re hurting channelisation and you are aiding the black market,” Felipe Maia adds.
“ It’ s a process for us to teach them, to explain to them [ how our industry works ] and to avoid those views, because many of these bills are talking about misconceptions”
Fellipe Fraga, Estrelabet
ADVERTISING HELPS IDENTIFY LEGAL OPERATORS
In fact, advertising is actually a hugely important tool for operators to demonstrate they have a licence and to channel bettors into legal offerings, particularly in the early stages of a licensed market’ s development, when competition among brands is at its fiercest and player loyalty has not yet been established.
With licensed operators’ advertising required to have an‘ 18 +’ symbol and information on the associated risks of addiction and pathological gambling disorders, the role of advertising in distinguishing legal from unlicensed operators is“ crucial” according to Garita.
“ Advertising is one of the few publicfacing tools we have to demonstrate that we operate legally,” he explains.
“ It allows us to build trust, promote safety, educate users and show that we work within a regulated framework. Eliminating that visibility blurs the lines between legal and illegal operations – posing a major risk to consumers.”
And even with advertising providing that distinction, markets like Sweden have found a high percentage of players still cannot distinguish legal operators from black market brands.
NEGATIVE PUBLIC PERCEPTION OF GAMBLING
Significant pressure was put on Brazil’ s gambling sector in 2024, during a crucial period of establishing regulation. A Supreme Federal Court hearing in November was initiated after a leading trade union accused the new betting laws of being unconstitutional, amid fears betting leads to high addiction levels and family debt.
But four months into licensed betting, the public opinion towards betting seems to be improving, and in April a government-funded survey
62 • ISSUE 138 • iGB L! VE 2025