A lawyer specializing in the gaming market stresses that online casinos, such as 'Jogo do Tigre' and 'Jogo do Aviãozinho', are expressly forbidden in Brazil
Recently, TV Globo's "Fantástico" aired special reports on the allegations and investigations into the involvement of influencers and celebrities with Blaze and other gambling companies.
Names like Neymar, Bruna Biancardi, Felipe Neto, MC Mirella, Gabriel Medina, Karoline Lima, Rico Melquiades, Viih Tube, Dynho, Mel Maia, Juju Salimeni, Carlinhos Maia, Key Alves, Arthur Aguiar, Nicole Bahls, Viviane Araújo and other famous names are #Blaze Ambassadors or have advertised for the brand.
Online games, such as Jogo do Tigre or Jogo do Aviãozinho, are advertised through the influencers' social media profiles, mainly Instagram, with links to the sites. However, according to Article 50 of Decree Law 03/10/41, online casinos are explicitly forbidden in the country because they constitute a criminal offense, punishable by simple imprisonment of three months to one year, plus a fine.
What types of games are allowed under Brazilian law?
In an interview with IstoÉ, Marcelo Mattoso, a lawyer specializing in the gaming and eSports market, explained what the main differences are between a bet [an abbreviation of the English word "betting", which means to bet - so when someone refers to a "bet" in gaming, it's usually related to making a bet or risking something] or betting games and casinos or games of chance/fortune - both of which depend exclusively or primarily on luck.
"Fixed-odds sports betting is authorized by Brazilian law, regulated by Law 13.756/18, which was recently amended by Provisional Measure 1.182/2023, and is also provided for in Bill 6.626/23, which is progressing through the legislature," explains the expert, stressing that some regulations still depend on the Ministry of Finance.
"Currently the sites operating in the Brazilian market are based abroad due to the lack of regulation, but the idea is that the scenario will change in the coming months," he adds.
Brazilian law considers games of chance to be "gambling in which winning and losing depend exclusively or mainly on luck, betting on horse races outside a racecourse or place where they are authorized and betting on any other sporting competition".
+ Tiger's game: police seize assets of suspected financial pyramid scheme participants
+ PR: Police carry out operation against group using 'tiger game' to carry out scams
What are the legal responsibilities of influencers when promoting online betting activities?
Mattoso points out that at the moment "there is no specific law that prohibits this type of practice". "However, from the point of view of civil liability, combined with the guidelines of the Consumer Defense Code (CDC), the influencer can be held liable for damages caused by advertisements for products or services that cause harm to consumers, and there are already rulings to this effect."
The lawyer stresses that the famous people involved with Blaze or any other company in the industry "end up becoming part of the consumer chain because they have a direct influence on the consumption of that product or service".
What do Brazilian advertising laws say about influencers who promote Blaze or other companies?
"They apply as if they were any other type of advertising or propaganda. That's why it's essential to observe the Brazilian Advertising Self-Regulation Code and the Advertising Guide for Digital Influencers, issued by the National Advertising Self-Regulation Council (CONAR), which provide numerous rules and guidelines for advertising in Brazil," says the lawyer.
It's common to see ambassadors' profiles advertising games of chance several times a day - and according to Marcelo, they can face "penalties applied by CONAR, such as a warning, a recommendation to change or correct the ad and a recommendation to the media to stop advertising the ad, as well as being held civilly liable for damages to consumers, either by the administrative bodies for consumer protection and defense or by the Brazilian judiciary in specific actions".
In the "Fantástico" reports, in various accounts in the publications of Blaze or the influencers, fans say that they felt harmed or injured by the company - because they didn't receive the amount won in the games.
The lawyer then explains that "anyone who feels they have been harmed by any kind of misleading or even dubious advertising can report it to CONAR, the Public Prosecutor's Office and PROCON".
"In addition, if there is concrete evidence that such disclosures have caused damage, those who feel aggrieved can go to court to obtain compensation for the damage suffered, whether material or moral."
What are the consequences for influencers who promote Blaze or other similar companies?
"The courts have taken the position that influencers are objectively liable for damage caused by advertising or publicity that may mislead the consumer or cause any kind of damage, using the CDC's consumer chain and the requirements of civil liability as an argument," says Mattoso.
It is important to emphasize that the Federal Police are still investigating the relationship between famous people and casino brands or games of chance/fortune and "if during the investigations concrete evidence is found that any of them has committed any type of crime or criminal offense, legal measures may be adopted, including the opening of judicial proceedings, preventive detention and the imposition of fines," concludes the expert.
According to "Fantástico", Blaze had more than R$100 million blocked by the courts - and Viih Tube, Juju Ferrari, Jon Vlogs, Mel Maia, Rico Melquiades, MC Kauan and Juju Salimeni, who appear in the report, are being investigated.
On Monday night, 18, Blaze, on its Instagram profile @jogueblaze, shared a note to the public in response to what was linked in the report.
The company reiterated that it is not based in Brazil, but in Curaçao, a Dutch island in the Caribbean, and "that there are many unfounded complaints from customers who are unable to make withdrawals, usually related to violations of the Terms of Use".
"To the public of BLAZE.COM. We are commenting on the report by the program "Fantástico", broadcast on December 17, 2023. BLAZE is an online betting platform managed by PROLIFIC TRADE N.V., licensed in Curaçao and operating in accordance with local regulations. We have always maintained a high level of professionalism and transparency, making us a benchmark in the market. The report presented inconsistent versions. In fact, in relation to the narrative presented, the Public Prosecutor's Office has already requested that the alleged crimes of embezzlement and crimes against the economic order be dismissed. Likewise, the blocking of the website was revoked by the judge because it was considered unreasonable. For its part, the Federal Police has already stated that the practice of online betting abroad does not constitute a criminal offense. Regarding the complaints filed, we receive many unfounded complaints from customers who are unable to make withdrawals, usually related to violations of our Terms of Use, such as abusing bonus rules and creating multiple accounts (which is standard as in the cases mentioned in the report). We always resolve legitimate complaints through our humanized service team, made up of 24/7 support. Finally, we are following the bill regulating bookmakers in Brazil and support responsible and comprehensive regulation, as we have always operated in compliance with Brazilian law. We would therefore like to thank our clients for their repeated confidence in our work, and this will continue to be the case. Sincerely, PROLIFIC TRADE N.V", reads the text.
Source: IstoéGente