SBC News Voice of the Sports Betting Industry
Since January, much of the discourse in the iGaming industry has focused on regulation in Brazil. After many years of deliberation, the legislature finally approved regulation last summer, with a body in place and operators licensed.
But amidst the excitement and anticipation at this remarkable opportunity, it is difficult to shirk the lingering sense of frustration with certain aspects of the framework.
As Alberto Simoes, Director at Clever Advertising, tells SBC News there are certain marketing measures that don’t necessarily make sense.
Speaking at SBC Summit Rio, Simoes bemoaned the legislation that bans operators and affiliates from welcome bonuses.
“I disagree with the reasoning of this legislation,” said Simoes. “The premise is that bonuses can lead to addiction, but there is no evidence to support this. Additionally, at the onset of a new market, welcome bonuses could be a great tool to shift players from the black market to the newly regulated market.”
When markets shift from grey to regulated, there are naturally concerns about the rate of channelisation. Those concerns are amplified when the regulated market operates under restrictive marketing controls that the black market indubitably does not abide by.
Simoes argued that by banning welcome bonuses, regulators only serve to put players at risk by exposing them to unregulated actors.
“They would be an excellent marketing tool, especially at a time when it’s unclear for a significant number of consumers which operators are licensed. But unfortunately, from what I’ve heard, this is not likely to change.”
It isn’t just the bonusing issue that has irked operators and affiliates in Brazil in the early days of this hotly anticipated market.
Simoes noted that the transition since January “has not been swift” for operators or players. In his view, this only benefits the black market.
“If I were the Brazilian regulator, I would have eased the KYC requirements during this transition period,” he noted, “because I believe it’s better to have players in the newly regulated market. Now, if I want to play, I have to send a copy of my ID card and undergo facial recognition, whereas in the black market, I don’t.”
Despite this, Brazil remains a lucrative country for the Maltese marketing specialist company, which has been active in the country for more than six years.
As its Director stated, it is the market responsible for the lion’s share of its FTDs and revenue. In Simoes’ view, this is because the company has considerable experience in the market as well as the natural advantage of having many native language speakers.
But what also sets it apart is its intrinsic understanding of the laws and regulations and its ability to clearly communicate this to global operators.
Simoes explained: “The new legislation introduced advertising restrictions, many of which are unclear. Over the past years, we have worked with many Brazilian lawyers and gained significant knowledge.”
He added: “For our clients not based in Brazil, we clarify those legal requirements and indicate what is permissible. We engage in discussions with them and their non-Brazilian lawyers to find a framework that they are comfortable with to generate more FTDs and give more visibility for the brand.”
Nevertheless, Brazil is still an incredibly lucrative market with plenty of opportunities. And when there are limits on welcome bonuses, marketeers move on to the next technique.
For Clever Advertising, this is the use of influencers.
Influencers, if used correctly, can be an incredibly powerful tool for operators to reach new audiences. However, Clever Advertising, as a broker of these influencers, implements a rigorous process.
This is particularly important in Brazil, where influencers have a long history of associating with the betting market, but also where the actions of some more unscrupulous online personalities working with unlicensed betting operators have caught the attention of policymakers.
“It begins with understanding the audience and identifying their interests,” Simoes explained. “There are many factors to consider. Does the influencer target minors? If so, that’s a big no.”
“UK CAP stipulates that minors should not make up more than 25% of the audience. However, we have adopted a stricter policy.”
“We assess the influencers’ suitability and match them with clients seeking to work with influencers. After being vetted and approved, the influencer will become exclusive to the client.”
This meticulous approach to influencers extends to ensuring that the content is optimal for the target audience as well as compliant with local regulations. Clever Advertising discourages scripted promotions to maintain authenticity. The company works with influencers not just in Brazil but also in Nigeria, Peru, and Colombia, amongst others.
But as the company’s director noted, Brazil is a very particular market.
“It’s important to look at Brazil as a federation. What works in Rio may not work in Sao Paulo, for example. We dedicate a significant amount of time with the clients and see what message they want to convey and then match that with the right influencers and their audiences.”
As Clever Advertising continues to position itself as a leading provider of affiliate marketing services in Brazil, it is optimistic about the remainder of 2025.
But with the world of marketing continually evolving, it is essential to keep up with the latest trends in media consumption.
Next on the company’s list of media is podcasts.
As Simoes noted: “Many people listen to podcasts. We want to learn more about how podcasts work so that we can include them in our portfolio.”
Despite the challenges of the newly regulated market, Clever Advertising remains committed to growth in Brazil and the wider Latin America region.
“Latin American people are great to work and socialise with. It’s easy to work here, and we have strong numbers in Colombia and Peru. Mexico differs slightly due to the prevalence of cash-based transactions, which is not ideal for online businesses. Argentina is only partially regulated. But overall, Latin America is a fast-growing region.”
