A recent study conducted by the Rede em Jogo project at CondadoLab, PUC-Rio, has uncovered that an astonishing 84% of the betting operators most recommended on Instagram are operating illegally in Brazil. This research was highlighted in a report published by The Intercept Brasil on Monday and examined over 55,000 Instagram accounts, comparing the data with the official registry of authorized operators maintained by the Secretariat of Prizes and Bets (SPA).
The findings indicate that when a user follows a single betting-related account, Instagram's algorithm tends to suggest others in the same niche. This leads to a clustered environment where multiple betting sites, influencers, and specialized pages are recommended. Specifically, among the 100 accounts that receive the most recommendations, their collective following exceeds 6 million, with over 114,000 posts across these profiles. These recommendations primarily consist of three types: betting operators, content creators, and media outlets that focus on the betting market.
Alarmingly, much of the content promotes betting as a viable investment opportunity. For instance, one individual, identified by the pseudonym Pedro, presents himself as a "professional gambler" in a video, advertising a "unique opportunity" linked to access to a premium betting group. He claims that while access to his Telegram group typically costs BRL397 (approximately $77.18) per month, he is offering it for just BRL14.91 per month if paid annually—a significant discount aimed at attracting new members.
The research highlights a pressing issue: many of the advertised companies lack authorization to operate in Brazil. While some may possess licenses from other countries, this does not grant them the legal right to operate within the Brazilian market.
Additionally, profiles associated with tipsters, sports traders, and purported professional gamblers have been identified selling access to various betting-related products such as predictions and spreadsheets, while promoting gambling as a means to generate income. Expressions like "leaving the CLT [Brazilian labor law]" and "your dream income" have been used in posts geared towards normalizing this behavior, often featuring screenshots that claim to show user earnings from gambling activities.
There is a notable presence of creators focusing on casino games within the Instagram ecosystem, including influencers promoting entities like Fortune Tiger, providing what mirrors the promotional strategies typically found in the sports betting niche. Another purported professional gambler, referred to as João, shares enticing live videos showcasing gaming sessions that suggest high payout possibilities, while also disseminating insights on achieving successful bets.
The nature of the content on Instagram accounts belonging to gambling operators varies widely. Some adopt a humorous approach, using engaging videos, while others employ automated tools to craft advertisements highlighting promotions and the betting odds associated with significant sporting events.
Most accounts promoted by Instagram’s recommendations are from international companies that may be seen as legal in their home markets, but are operating without the necessary authorization in Brazil, rendering them illegal.
The ecosystem is complemented by specialized media outlets that report on gambling and promote betting platforms. These channels present information under the guise of news, discussing market odds, operator features, and individual stories of bettors, including those who have experienced remarkable wins alongside those who have suffered losses.
References to regulatory bodies like the National Advertising Self-Regulation Council and SIGAP are prevalent, although often misplaced in the context of advertising illegal operators. By doing so, these entities can mislead audiences into assuming an endorsement of their legitimacy.
Meta, the parent company of Instagram, has stipulated guidelines for gambling platforms regarding advertising on the site. These guidelines allow for advertising and branded content provided the platforms obtain proper authorization. Advertising is prohibited for those under 18 and in regions where gambling remains unregulated, with approved companies required to submit documentation proving their operating licenses. Despite these measures, there is a notable lack of clarity regarding policies that ensure responsible gambling practices and the verification of compliance with legal obligations.
The systemic issues presented by these algorithmic recommendations not only normalize gambling but also raise significant concerns around the role Meta plays in potentially facilitating illegal activities. Addressing these challenges may require an expansion of regulatory measures from both the SPA and the National Data Protection Agency, emphasizing the need for transparency, monitoring, and moderation within this rapidly evolving ecosystem.
