YouTube profits in Brazil from illegal betting ads despite ban
YouTube, the world’s largest video platform, is earning revenue from the promotion of illegal online betting sites in Brazil, despite a government ban on such advertising and an agreement with authorities to remove the content. Several of these betting platforms are listed by the National Telecommunications Agency (Anatel) as irregular and lacking authorisation to operate in the country.
Although Brazilian law prohibits advertising for unlicensed gambling operators, such promotions remain widespread on YouTube. In some cases, advertisements for these sites appear among every three suggested videos. The ads often promise cash bonuses for signing up—an incentive forbidden by Brazilian law—and frequently use domains that do not include “.bet.br”, a requirement for licensed operators.
No age checks or identity verification
By clicking on these advertisements, users are redirected to what appears to be an online store, where they are prompted to install an app. Registration only requires a phone number and password, without any verification of identity or age. Some of these apps, including one developed by an entity called Ballet Lyn and launched on 31 March 2025, are categorised as “free classification”, contradicting the restrictions on access by minors.
Brazilian legislation mandates that legal betting companies pay R$30 million (approx. USD 6 million) to the federal government, adhere to specific regulations, and pay taxes on profits. Illegal operators bypass these obligations. According to Folha, some apps are registered in Hong Kong but claim to operate under a Curaçao licence. These companies often make new websites with small changes in their web addresses to avoid being caught by regulators.
Many users have complained about scams, such as not being able to withdraw their money or getting viruses on their devices after using these sites. Because these websites change so often, it’s hard to track how many ads for them appear on YouTube.
YouTube, owned by Google, receives payment for each advertisement but has not disclosed how much revenue these ads generate. The platform stated it is reviewing flagged content and noted that it updated its publishing policies in September 2024.
Legal experts call for strong oversight
Attorney Luiz Felipe Maia warned that advertising unauthorised websites could result in fines ranging from R$50,000 to R$2 billion (approx. USD 10,000 to USD 400 million). However, he pointed out that enforcement requires action from the Prizes and Betting Secretariat (SPA) of the Ministry of Treasury.
“You advertised and are being paid for it. If the content is repeated, it should have stronger KYC,” Maia said. He added that although the Internet Civil Rights Framework offers some protection to platforms, repeated violations could lead to penalties.
YouTube tightens ad rules
YouTube says all advertisers must follow Google Ads rules and Brazilian law. If they break the rules, their ads can be removed and their accounts suspended. After meeting with officials, the SPA said YouTube has made its rules tougher to take down betting content.
“The SPA has already managed to block more than 11,000 illegal websites,” it said in a statement.
In March, YouTube took down live streams containing illegal betting content. However, Giovanni Rocco, the national secretary, criticised the platform’s dual approach and said, “YouTube is monitoring live streams, but at the same time it advertises illegal bookmakers and makes money from it.”
Plínio Lemos Jorge, president of the ANJL (National Association of Legal Gaming), said the association alerts authorities about illegal sites. “This is a clandestine, highly technological network. The participation of the Federal Police in the investigations is increasingly important,” he said.
