A recent study by the Rede em Jogo project at CondadoLab, part of PUC-Rio, found that 84% of the betting operators recommended on Instagram are illegal in Brazil.
This research, published on Monday by The Intercept Brasil, analyzed over 55,000 Instagram accounts and compared the findings against the official list of authorized operators from the Secretariat of Prizes and Bets (SPA).
The issue begins when a user follows a betting-related account, prompting Instagram's recommendation system to suggest similar profiles, including those of betting sites, influencers, and specialized content creators.
Among the 100 most recommended profiles, these accounts collectively boast over 6 million followers and 114,000 posts. The study identified three primary types of profiles: betting operators, content creators, and media outlets focusing on the betting market.
Interestingly, the research found that some of this content connects gambling to investment opportunities and income potential. An Instagram story featuring an individual referred to as Pedro—a pseudonym for a "professional gambler"—highlights a "unique opportunity". He claims he will unveil a "super promotion for a premium group with higher odds". Normally, access to this Telegram group would cost BRL397 ($77.18) per month, but he offers a limited-time deal at just BRL14.91 if purchased annually. This group primarily serves to sell Pedro's sports predictions and tips on betting operators.
The concern lies in these recommendations often promoting companies unauthorized to operate in Brazil. While some may hold licenses in foreign countries, this does not confer legality in the Brazilian market.
The study also highlighted profiles of influencers, often referred to as tipsters or professional gamblers, who market their services—including group memberships and betting predictions—claiming that gambling can provide a steady income. Some content explicitly encourages followers to leave traditional jobs (referred to as "CLT" in Brazil) in pursuit of their "dream income," while others display images of purported user earnings to represent gambling as a viable investment.
Following the investigation, it became evident that recommendations also lead users to accounts associated with gambling platforms like "Fortune Tiger". This gaming-focused influencer, introduced as João, shares live videos simulating high-stake gaming sessions, flagging operators with the highest payouts. In another clip, he instructs viewers on recognizing patterns in the game's interface that suggest potential big wins.
Content on the gambling operators’ profiles varies according to their marketing strategies, ranging from humorous and engaging videos to generic AI-generated advertisements featuring promotions and betting odds associated with major sporting events.
The majority of recommended accounts are found to be operating illegally, particularly international entities that lack SPA authorization, rendering their activities unlawful in Brazil.
In this landscape, a variety of specialized media outlets—such as channels and gossip blogs—further promote both sports and gambling sites, often presenting their content framed as news. This enables discussions of high market odds, operator features, and various bettor success stories while exposing less fortunate gamblers.
These profiles frequently reference regulatory bodies, such as the National Advertising Self-Regulation Council and SIGAP, Brazil’s betting management system. While they generally mention responsible gambling, this is often associated with illegal operators and questionable advertising practices.
In some cases, illegal operators attempt to legitimize themselves by using terms like "authorized" in their communications or by employing the “.bet” domain extension reserved for licensed platforms.
Meta, the parent organization of Instagram, states that gambling platforms can utilize programmatic advertising given they secure authorization from the platform. They are prohibited from targeting individuals under the age of 18 or from reaching regions where gambling isn't regulated.
For Meta's approval, gambling sites must complete a form providing documentation of their operating licenses, which includes a contract that releases Meta from liability for any content violations.
However, the approval process strictly pertains to paid media. Meta's policies regarding organic content that markets online gambling aim to prioritize safety and ensure that only individuals over 18 see this information, but they do not specifically address responsible gambling practices or elaborate on legal obligations.
The study pointed out a lack of governance that aligns with current regulatory frameworks and suggests that Instagram's recommendation algorithms inadvertently contribute to an environment that promotes gambling as an employment alternative. This highlights a systemic risk where Meta plays a significant role. Addressing this issue may require expanding obligations for digital platforms, alongside enhancing regulatory measures from the SPA and national data protection agencies to include monitoring and moderation resources.
