Recent research from Rede em Jogo, conducted by CondadoLab at PUC-Rio, found that 84% of betting operators recommended on Instagram are operating illegally in Brazil. The study, which was reported by The Intercept Brasil, examined over 55,000 Instagram accounts and compared the findings to the official list of licensed operators maintained by the Secretariat of Prizes and Bets (SPA).
The survey pointed out that once a user follows any betting-related account, Instagram’s algorithm showcases additional related profiles. Among the 100 most frequently recommended accounts, these have collectively gained over 6 million followers and 114,000 posts. The findings categorize recommended accounts primarily into three types: operators, content creators, and media focusing on the betting market.
The investigation also highlighted content that misrepresents betting as a form of investment or income generation. One Instagram user, under the pseudonym Pedro, claimed in a video that he was offering a "unique opportunity" in exchange for a monthly fee of BRL397 ($77.18). He stated that for a limited time, followers could join a premium group for just BRL14.91 on an annual plan, where he provided sports predictions, betting operator tips, and valuable betting odds.
The illegal nature of many recommended companies complicates the situation. Though some might have licenses in foreign jurisdictions, they remain unauthorized to operate within Brazil.
The investigation identified numerous influencers, including tipsters and "professional gamblers," who offer memberships to groups and produce betting-related content, projecting gambling as an income-generating activity. Some of the content utilizes phrases like "leaving the CLT [Brazilian labour law]" and "your dream income", promoting gambling while showcasing supposed user profits.
Prominent among the influencers is a niche centered around casino games, including a controversial figure known as Fortune Tiger, who employs a marketing strategy akin to that seen in sports betting. Another influencer, João, regularly posts videos simulating lucrative gaming experiences, advising viewers on which operators or games yield the highest payouts. He also claims to "teach" viewers how to spot patterns that signal potential wins.
Instagram accounts for various gambling operators feature diverse content strategies, employing humor and AI-generated promotional materials to draw attention to their services, game options, and relevant betting odds.
However, the majority of the accounts favored by Instagram's algorithm are indeed illegal, specifically those belonging to international operators. While these companies may comply with local regulations abroad, they lack authorization from the Brazilian SPA.
Additional profiles of media channels and influencers reporting on sports often blend promotion with news, framing their content around the best odds available, features offered by operators, and the experiences of bettors, whether successful or not. Many refer generically to regulatory bodies, emphasizing responsible gaming without specific ties to legal operators, despite promoting illegal gambling.
Within this context, existing regulations meant to protect players can inadvertently serve to legitimize illegal operators, who may misuse terms like "authorized" in their marketing and employ the domain extension ".bet", which is reserved for licensed operators.
Meta, the parent company of Instagram, permits gambling platforms to utilize programmatic advertising and sponsored content if they obtain proper authorization. However, ads cannot target users under 18 or promote content in regions where gambling is not regulated. To gain this authorization, companies must submit documentation proving their licenses, which includes accepting terms limiting Meta's liability for any breaches.
Meta's policies do not specifically address responsible gambling or clarify other legal obligations related to monitoring and validating operators. The lack of defined measures for overseeing these practices points to a systemic risk, implicating Meta as a significant player in an environment that promotes gambling as an alternative to conventional employment. Addressing this risk effectively requires expanding the regulatory scope of both the SPA and the National Data Protection Agency to enhance oversight and compliance monitoring within the digital landscape.
