Sawt Falasteen - Brazil toughens rules on gambling ads as bets explode

Brazil's betting market has boomed since a regulatory framework was established in 2023, accompanied by aggressive advertising both on the streets and online from influencers and sports stars.

Controversy soared during the World Cup, with YouTube channel CazeTV -- which streamed all matches live to millions of people -- showing QR codes to place bets and recommending specific wagers.

After a probe from the country's consumer protection agency, the channel scaled back such ads.

The goal is to "treat betting like cigarettes," said Finance Minister Dario Durigan of the new rules obliging betting ads to carry warnings.

Official figures show that most people using betting platforms come from poor households.

A study by the National Confederation of Commerce estimated that debt due to betting pushed almost 270,000 families into severe default over about three years.

"The people who bet aren't actually financially stable. They usually want to change their lives and end up believing this misleading advertising," Ana Clara Costa, a 21-year-old market vendor in Copacabana, told AFP.

Some cities are taking the rules a step further. In Rio de Janeiro, municipal workers this week covered up billboards with the message: "Betting ad REMOVED."

The Gaming and Lottery Association said such measures were an "unfounded attack" and told AFP it would take action against them.

Lawyer Juliana Prates told AFP she has sought to fight the industry since her brother took his own life last year due to gambling debts.

She said she filed a complaint to authorities after football star Neymar promoted a betting brand to his tens of millions of followers but never received a response.

She said there was a lack of will to solve the problem "because a lot of money is involved."

Brazilian influencer Virginia Fonseca is facing a lawsuit after recommending that her 56 million Instagram followers place a bet on Cape Verde beating Argentina during the World Cup.

Rodrigo Leite of the Federal University of Rio de Janeiro told AFP that public figures held more sway than traditional commercials, and that Brazilians needed better financial education.

"The average Brazilian did not have antibodies against betting," he said.

In 2025, 25.2 million Brazilians placed bets, in a country of 213 million inhabitants, according to official data.

President Luiz Inacio Lula da Silva has described the phenomenon as a public health issue, even though his government collects billions of reais in taxes from the sector.

I.Matar--SF-PST