Alagoas Police Chief Raises Alarm Over Influencers Exploiting Gamblers in Betting Inquiry
In a bold statement before the Parliamentary Inquiry Commission (CPI) focusing on online betting, Lucimério Barros Campos, the police chief of Alagoas, cautioned against the deceptive practices employed by social media influencers who are actively misleading and defrauding gamblers.
On Tuesday, April 22, Campos presented evidence to the Brazil betting CPI, following his leadership in “Operation Game Over,” an initiative aimed at exposing the underhanded tactics of online influencers linked to illegal gambling operations.
During his testimony, Campos revealed that illicit betting platforms are enlisting influencers to attract gamblers using Pix, an online payment system. These influencers promote channels through which players can place bets on the black market.
Due to the classification of influencers as non-financial entities, regulating authorities find it challenging to freeze their assets or halt transactions. “As we received complaints from players about losing money, it became evident that these fintech payment methods are often set up clandestinely, run by individuals without ties to any legitimate business,” Campos elaborated.
The investigation has uncovered that approximately BRL15 million (around £2 million or $2.6 million) has been wagered through illegal betting activities in Alagoas since the legalization of betting in Brazil began on January 1.
Deceptive Marketing Tactics by Influencers
Campos further explained how influencers are being manipulated by illicit betting companies, using misleading accounts to create the illusion of significant wins from unauthorized betting platforms. In truth, these influencers are profiting from actual bettors who engage with the brands they endorse.
“To participate, players must download an app,” Campos stated. “Influencers exploit a demo account provided for promotional use. They share a link for their followers to bet while receiving an alternative fraudulent link to simulate successful outcomes, effectively orchestrating a scam.”
Call for Enhanced Regulatory Measures
Campos advocates for stronger legislation to combat such operations that take advantage of vulnerable gamblers, offering them unattainable prize prospects. Recently, federal deputy Kim Kataguiri introduced a bill aimed at criminalizing the advertising of illegal betting, proposing penalties of up to eight years for targeting susceptible demographics.
“If we fail to implement adequate regulations, we are confronting predatory behavior that poses a grave risk to the wellbeing of Brazilians,” Campos asserted. “It withdraws money from households, stifling local economic circulation, and diverts it directly to unlawful betting venues. In many cases, this money leaves Brazil altogether.”
Initially focused on fraudulent activities, the investigation later revealed instances of money laundering. Senator Damares Alves commended the police’s dedication to tackling these challenges, remarking on the courage required to confront such a vast and unscrupulous market.
This inquiry highlights the urgent need for robust frameworks to protect individuals from deceit and to ensure that the emerging landscape of legal betting does not become a haven for exploitation.