YouTube updates betting policies as influencers test Brazil’s govt patience

Brazil’s betting market is continuing to adjust to its grey-white transition, as are political overseers and major companies like YouTube which sit on the sidelines of gaming but are nonetheless affected by its developments.

Recent developments have seen marketing placed front-and-centre in politicians’ and tech firms’ agendas. Notably, YouTube will introduce strict new measures from 19 March which will block content related to illegal online gambling websites – though these policies are not isolated to Brazil, they do have a particular relevance to the developing market.

Luckily for the regulated industry, this lines up with its ambitions in the early days of the market. Speaking at the SBC Summit Rio last month, key stakeholders stated that addressing illegal gambling activity is a top priority.

“We need to fight illegal houses, something that really has an impact on our market. Once they are working illegally they hinder the way Brazilian people see our market,” Rafael Borges, CEO of UX Group and licensed bookmaker Reals, said at the event.

So what does YouTube’s policy entail and what prompted it to make the changes? Firstly, the Google-owned video platform will ban publication of links or images related to unlicensed betting sites and will ban any verbal mention of these services.

Additionally, any videos about online casinos need to have age restrictions so that only people aged 18 or above will be able to view the content. Influencers promoting betting sites will also be required to only link to officially licensed companies, of which there are 71 active in Brazil.

YouTube’s policy statement, as reported by SBC Noticias – BR, reads: “Content that promises guaranteed returns may be removed, regardless of whether the online gambling site or app has been approved by Google.”

As to YouTube’s motivations, the company has been prompted by regulatory action. The Ministry of Sports has been vocal in its complaints about the proliferation of influencers on the platform who are prompting illegal betting sites.

This is a hangover from Brazil’s grey market years, which many stakeholders have decried as a ‘wild west’ environment in which influencers were free to promote betting sites in an irresponsible way.

Now that the market is fully regulated, stakeholders want consumers to view the industry as a form of entertainment, not as a way of making money, at least that is what SBC Summit Rio speakers asserted.

“The grey market was completely out of control, you had influencers promoting this as an investment,” said Alex Fonseca, CEO of Superbet, a Romania-based multinational and one of the first licence holders in Brazil.

Policymakers losing patience with underground marketers

Brazil’s Ministry of Sports has responded positively to YouTube’s new policy. The Ministry’s National Secretariat for Sports Betting and Economic Development of Sport (SNAEDE) has been particularly active in identifying illicit marketing, having identified 53 YouTube accounts and 25 channels promoting illegal betting.

SNAEDE Secretary, Giovanni Rocco, said: “In light of these complaints, the Ministry of Sports considers the measure a victory, representing progress in protecting the most vulnerable families, who end up being deceived by scammers disguised as digital influencers.”

The Ministry of Sports is not the only political stakeholder whose attention has been snagged by illicit marketing. Congressman Kim Kataguiri, a member of the Brazil Union centre-right political party, has presented a bill which will take things a step further if adopted.

The Bill seeks to include promoting illegal gambling as a crime in the Brazilian penal code. If approved by Kataguiri’s fellow legislators, the bill could see influencers who breach the rule face between one and four years in prison if they promote unlicensed firms.

As Brazil adjusts to its new regulated era there are opportunities aplenty for operators, games developers, sportsbook and igaming platform suppliers and payments firms alike.

What is also clear though is that there are many challenges to overcome as the country comes to grips with issues like responsible marketing, which have proven a headache for even the most mature betting markets.