LUN 21 DE ABRIL DE 2025 - 23:43hs.
Hong Kong companies

YouTube profits in Brazil from advertising illegal betting sites

YouTube, the world's largest video platform, has profited from the promotion of illegal online betting sites in Brazil, despite the ban on these companies advertising in the country and an agreement signed with the Brazilian government to remove content. Some of the so-called ‘Bets’ published on the platform are listed by the National Telecommunications Agency (Anatel) as irregular and without authorization to operate in the country.

When contacted, YouTube stated that the content reported by Folha is under analysis and that, since September 2024, it has updated its publishing policies.

Advertising on YouTube is targeted at those who searched for betting videos. The report found that the platform offers ads for illegal sites, with the so-called "Trigrinho game" (Fortune Tiger) or similar, for every three suggested videos.

Illegal companies are easy to identify. Some of them promise cash bonuses when registering, which is prohibited by Brazilian law. None of them have the domain "bet.br", which is exclusive to those licensed in Brazil.

By clicking on the advertisement, the user enters an online store and an application is installed on the cell phone, which redirects to the illegal site and allows bets to be placed. Registration only requires a phone number and password. There is no requirement for the bettor to identify themselves or provide proof of age.

Some illegal addresses have even managed to bypass the blockade on online stores – where it is common for them to be listed with a "free classification", in violation of the ban for minors under 18 years of age.

The legislation requires that companies pay a grant of R$30 million (US$ 5m) to the federal government and commit to a series of rules (such as anti-money laundering policies) in order to operate in Brazil and advertise. In addition, they must pay taxes to the federal government on their profits, which does not occur with unauthorized 'Bets'.

The apps found by Folha are registered by Hong Kong companies, as are those contracting for advertising on YouTube, despite claiming to have a license obtained in Curaçao, an island in the Caribbean that is home to several betting houses that operate around the world.

One way to evade inspection is to launch new illegal websites when the previous addresses are taken down by the authorities. Since the main purpose is to commit scams, there is no expectation of customer loyalty, and the websites are registered with variations in numbers and generic acronyms.

On social media, users report illegal 'Bets' scams because they are unable to withdraw the money they deposited or because viruses are installed on their devices when accessing the platforms.

The turnover is high and it is difficult to say exactly how many operate illegally and advertise. One of the apps identified by the report, for example, is from an alleged developer called Ballet Lyn, launched on March 31, 2025. It redirects to 666bet.com, which has been blocked in Brazil since October. Another, from a developer called Naftalielijah, was added to online stores this month.

YouTube, which is owned by Google, receives money to publish each of these ads. The amounts and reach are not disclosed.

Advertising from unlicensed websites in Brazil is illegal and can result in fines ranging from R$50,000 to R$2 billion (US$ 8,500 to US$ 340m), as explained by lawyer Luiz Felipe Maia (MAIA YOSHIYASU ADVOGADOS) who works in the sector. "This requires an administrative process, which must be initiated by the Prizes and Bets Secretariat of the Ministry of Finance," he said.

The lawyer emphasizes that the Internet Civil Rights Framework protects platforms from the dissemination of illegal content by users, but the company can be punished for the advertisements it publishes.

"You advertised and are being paid for it. If the content is repeated, it should have a stronger KYC ('know your customer')," Maia commented.

YouTube says that in order to advertise, it is necessary to agree to these policies, have an active license from the Ministry of Finance and prior certification from Google Ads. "When we identify a violation, we act immediately by suspending the ad and, if necessary, blocking the advertiser's account," the company said.

The Secretariat of Prizes and Betting (SPA) stated that YouTube reinforced the rules for removing content after meetings with the department. The agency emphasized that there is joint action with the National Advertising Self-Regulation Council (Conar) and the Digital Council, which represents large technology companies, to combat illegal advertising.

"It is also important to emphasize that the SPA has already managed, together with Anatel, to block more than 11 thousand illegal websites," it said in a note.

In March, YouTube ordered the removal of live streams by users with gambling content that violates the law. Giovanni Rocco, Secretary of National Sports Betting and Economic Development of Sports, of the Ministry of Sports, says that the company is experiencing a mismatch and demands that the law be quickly adjusted.

"YouTube is monitoring the live streams, but at the same time it advertises illegal betting houses and makes money from it," he says.

The president of the National Association of Games and Lotteries (ANJL), Plínio Lemos Jorge, says that the entity has informed the regulatory agencies about the addresses of illegal websites.

"But this is a large, highly technological clandestine network that develops new mechanisms every day to circumvent the regulated betting market. That is why the participation of the Federal Police in the investigations is increasingly important," he said.

Source: Folha