A recent study led by the Rede em Jogo project at PUC-Rio, published by The Intercept Brasil, found that 84% of the betting sites most frequently recommended on Instagram are operating illegally in Brazil.
The analysis examined over 55,000 Instagram accounts, comparing the findings with an official list of licensed operators from the Secretariat of Prizes and Bets (SPA). The research highlights an alarming trend: once a user follows a single betting-related account, Instagram's recommendation system begins to display additional profiles in the same space, which can include betting platforms, influencers, and specialty pages.
Among the top 100 recommended accounts, these collectively gather over 6 million followers and have made 114,000 posts. The recommended profiles generally fall into three categories: betting operators, content creators, and media dedicated to the betting sector.
The study also revealed that much of this content presents gambling as an investment opportunity. For instance, a man identified as Pedro, a fictitious name used for a "professional gambler," promotes a "unique opportunity" in one of his Instagram stories. He claims he's offering a special promotion for a premium Telegram group—with an original monthly fee of BRL397 (approximately $77.18)—now available for only BRL14.91 per month through an annual plan. Pedro primarily markets this group where he shares sports predictions, betting operator tips, and insights on lucrative betting odds.
The significant issue lies in the fact that many of these promoted entities are unauthorized to operate in Brazil. While some may have licenses in other jurisdictions, that does not make them legal in the Brazilian market.
The findings also identified profiles of influencers known as tipsters, sports traders, and "professional gamblers" who market access to various betting-related products, such as predictions and spreadsheets, framing gambling as a viable source of income. Some posts went as far as using phrases like "leaving the CLT [Brazilian labor law]" and "your dream income" to lure users into this lifestyle.
Interestingly, the algorithm also leads users to accounts like Fortune Tiger, which focus on casino games and employ marketing strategies similar to sports betting influencers. Another influencer, referred to as João, shares videos that simulate profitable gaming sessions, suggesting which operators or games offer the highest payouts. In his content, João encourages followers to watch for specific game interface patterns signaling potential big wins.
Content on the social media accounts of gambling operators varies widely, from entertaining video presentations to generic promotional banners created through AI, covering the latest available games and betting odds.
The majority of accounts promoted by Instagram's algorithm operate illegally, especially international companies that lack the SPA's authorization yet may have licenses elsewhere. The ecosystem proliferates further through specialized media, including channels and journalists focused on sports and gambling platform promotion.
These media outlets often present advertisements for online betting sites as news, discussing market odds and the regulatory environment, yet many continue to reference regulatory bodies like the National Advertising Self-Regulation Council without a clear connection to the legality of the entities they promote.
Meta, the parent company of Instagram, maintains policies that allow gambling platforms to use programmatic advertising and brand content with prior permission. However, they prohibit targeting individuals under 18 or regions where gambling is unregulated. To receive approval from Meta, operators must submit documentation proving their licensing. This process includes accepting terms that relieve Meta from liability regarding any breaches.
While Meta’s policies encourage safe practices, there is a lack of specificity about responsible gaming and regulatory compliance. Notably, they do not clarify how they monitor licenses, manage content, or enforce regulations against illegal practices.
The findings expose systemic risks inherent in the current framework, where Instagram's algorithm promotes gambling as an alternative to formal employment. To mitigate these risks, expanding the responsibilities of digital platforms is crucial. It calls for a thorough revision of regulations by the SPA and the National Data Protection Agency, ensuring greater transparency and inclusion of technological measures to effectively monitor and regulate this online gambling ecosystem.
