As Brazil continues the process of formalising its gambling market, the role of social media influencers and affiliates has come under intense scrutiny following recent testimony delivered to the country’s Parliamentary Inquiry Commission (CPI) on Betting. Allegations of misleading practices and promoting illegal operators stemming from a police investigation have raised questions about whether this marks the beginning of the end for gambling influencers in the burgeoning Brazilian market.

With Brazil’s legal online betting market having launched on January 1, 2025, operators, suppliers, and affiliates are actively positioning themselves within the new landscape. However, affiliates, in particular, have found themselves under a brighter spotlight.

A pivotal moment occurred last week (late April/early May 2025) when Lucimério Barros Campos, the police chief of Brazil’s Alagoas state, provided testimony to the CPI on Betting. The police chief delivered a damning account, alleging that social media influencers are actively misleading and scamming gamblers.

This testimony emerged from an investigation dubbed Operation Game Over. Based on the findings of this operation, as presented in the testimony and reported by iGaming Times, online influencers have been engaging in dubious activities, specifically designed to lure players towards the black market. The investigation in Alagoas alone estimated that BRL15 million had been wagered via illegal bets since the start of the year, although the full extent of illegal wagering across Brazil as a whole was not disclosed.

Operation Game Over reportedly uncovered a specific mechanism used in these scams. Players were directed to download a particular app, which provided influencers with a “famous demo account.” While the influencer would post a link for people to click and bet on the actual platform, they also received a separate, fake link that allowed them to log in and record their screen showing fabricated “big wins.” The police chief’s testimony described this entire process as “all a scam.”

The damage caused by affiliates directing players to unlicensed sites extends far beyond their follower counts. Promotions run by these influencers were described in the testimony not only as deceptive but also as potentially criminal activities, including allegations of encouraging money laundering, manipulating vulnerable consumers, and draining cash from the local economy. While such practices may involve only a small number of individuals, these negative associations risk ushering in long-term reputational damage for the entire gambling industry, a significant concern for a market that is just finding its footing under new regulations. The police chief’s testimony to the CPI did not mince words, warning that “If there is no proper regulation of this type of activity, we are talking about predatory activity here, which poses a very significant risk to the health of Brazilians.” This issue is seen as having national consequence, potentially creating a roadblock for the market’s development.

Political Reaction and Proposed Legislation

The revelations from the Alagoas investigation and the subsequent testimony to the CPI appear to have galvanised political will towards stricter oversight. The CPI seems intent on tightening its grip on gambling promotion. This resolve is backed by voices like Senator Damares Alves, who has reportedly described the black market as “disgusting,” reflecting a strong political sentiment against illicit operations.

Adding a legislative dimension to the reaction, Federal deputy Kim Kataguiri has introduced a bill that would specifically criminalise the promotion of illegal gambling platforms. As reported by iGaming Times, the proposed legislation includes potential prison sentences of up to eight years for affiliates and influencers found to be targeting children or vulnerable populations. This proposed bill represents a sharp pivot toward accountability within the affiliate space and serves as a clear warning shot for a section of the industry that has historically operated with relatively less direct regulatory oversight.

Implications for the Affiliate Industry

The broader affiliate industry is undoubtedly watching closely to see how the fallout from this testimony and investigation will shape Brazil’s gambling market moving forward. It is likely that affiliates will face increased scrutiny regarding which brands they choose to promote and the methods they employ in their promotional activities. A key takeaway is that comprehensive due diligence on the operators they partner with will likely no longer be optional; promoting an unlicensed operator could now carry a real legal risk, in addition to the existing reputational damage.

For some affiliates, particularly those who may have benefited from the less regulated environment of the black market in the past, this will represent a challenging shift requiring increased compliance efforts. While the unregulated market may have offered lucrative opportunities, the cost and risk of continuing to promote unlicensed entities are clearly rising.

The Brazilian regulator now faces a critical juncture. If the country can successfully strike a balance between effectively cracking down on illegal actors, including deceptive influencers, while simultaneously fostering a clear, well-defined, and regulated path for legitimate affiliates, the market has the potential to emerge stronger, safer, and more sustainable. The Alagoas investigation has indeed pulled back the curtain on a darker side of digital gambling promotion, but it also presents an opportunity for the market to course-correct and establish higher standards. The end may well be near for gambling influencers who built their success on deception and promoting illegal operations. However, for those willing to adapt, operate legitimately, and adhere to evolving regulations, this period of change could ultimately open up new and lucrative opportunities within a regulated Brazilian market.