The legal head of BetMGM, Eduardo Ludmer, has come out with a warning that continued restrictions by the government on influencer advertising could lead to excessive use of offshore or illicit gambling websites. Brazil has recently begun to open itself up to more gambling businesses, but has begun to crack down on advertisements using influencers.
Reports of Brazilian officials warning that influencer marketing can lead to scams, as well as other risks, come as the country begins to investigate the matter. BetMGM is now concerned that not allowing for influencers to drive gamblers to authentic iGaming sites and casinos could have an adverse effect.
A study that Ludmer points to found that 78% of Brazilians cannot tell the difference between offshore, illegal websites and legitimate gambling businesses. It also found that Brazil loses out on $10.8 billion Brazilian Real to illicit casinos every year.
Ludmer said:
“Imposing excessive restrictions on influencers who work with legal operators may inadvertently empower precisely the very market we aim to suppress: the illegal sector, which operates without accountability, disregards player welfare, and undermines the integrity and reputation of the industry as a whole.”
Allow influencers to drive Brazil based gamblers to legal sites, says BetMGM head
His argument is that, as these influencers have as much sway as they do in the country, it’s best to allow them to be used by the industry. Again, speaking, Ludmer said:
“The use of influencers in the betting industry requires a high level of responsibility and attention on the part of operators, especially when we consider the reach and impact that a single post or campaign can have on diverse audiences.
“These individuals play a key role in spreading a vital message: betting is not a financial investment, but a form of entertainment that must be enjoyed with responsibility and awareness.
“We believe that, with clear guidelines and effective oversight, this channel can serve as a powerful tool showcasing the sector’s commitment to transparency and responsible gambling.”
In recent months, Brazil has suspended licenses for four operators, as well as proposing a raise in tax to 18%. It’s also facing pushback from soccer teams for gambling sponsor bans.
