MPDFT files BRL120 million lawsuit against Blaze and Virginia Fonseca
The Public Prosecutor’s Office of the Federal District and Territories (MPDFT) has filed a public civil action against Foggo Entertainment, the company responsible for operating Blaze in Brazil, and influencer Virginia Fonseca. The lawsuit seeks to hold both parties jointly liable for BRL120 million ($23.38 million) in collective moral damages, alleging that the platform’s advertising and its brand ambassador misled consumers by creating a distorted perception of the risks of sports betting.
Filed by the 1st Consumer Protection Prosecutor’s Office (Prodecon), the lawsuit intensifies scrutiny of Brazil’s betting market. In recent months, the MPDFT has been investigating betting platforms, digital advertising and consumer protection mechanisms, particularly following the regulation of fixed-odds betting in the country.
According to the Public Prosecutor’s Office, Blaze allegedly adopted marketing strategies designed to create the false impression that consumers could easily or frequently obtain profits while downplaying the risks inherent in betting. The authority also argues that the use of digital influencers expands the reach of these campaigns and increases their potential impact on consumers considered more vulnerable.
Case during the FIFA World Cup
One of the main arguments presented by the MPDFT concerns a post published by Virginia Fonseca during the 2026 FIFA World Cup. According to the lawsuit, the influencer shared an Instagram Stories video while placing a bet on Cape Verde to defeat Argentina. At the time, the African national team was competing in its first FIFA World Cup and facing Argentina. Betting operators had listed Argentina as the favourite, offering very long odds on a Cape Verde victory. Argentina went on to win the match 3-2. According to the Public Prosecutor’s Office, followers who replicated the bet lost their money, while the platform allegedly generated revenue from those losses.
According to the Prosecutor’s Office, the issue is not limited to the betting recommendation itself, but also concerns the way the content was presented. The MPDFT argues that the publication appeared spontaneous and did not make it sufficiently clear that it was paid advertising.
Trust relationship between influencers and followers
The lawsuit devotes a significant portion of its arguments to the concept of a “parasocial relationship”, a term commonly used in communication and consumer behaviour studies. According to the filing, digital influencers create a sense of closeness with their followers by sharing aspects of their daily lives, families, travel and personal experiences. The Public Prosecutor’s Office argues that this causes commercial recommendations to be perceived by part of the audience as genuine advice from someone they trust.
In the specific case of Virginia Fonseca, who has more than 56 million Instagram followers, prosecutors argue that the video showing the bet could have been interpreted as a personal decision rather than advertising, increasing its potential influence on consumer behaviour.
Although the Argentina versus Cape Verde episode received significant public attention, it did not initiate the investigation. In June, the MPDFT had already opened a civil inquiry into Blaze’s operations in Brazil. The investigation covers alleged abusive practices, misleading advertising, retention of user funds, account suspensions, contractual clauses, bonus policies and responsible gambling mechanisms.
According to the Prosecutor’s Office, the inquiry was launched following the analysis of more than 42,000 complaints filed against the platform, as well as reports submitted by consumers. During the investigation, MPDFT officials created accounts on the platform to monitor communications sent to users and assess how promotional campaigns were conducted.
Public Prosecutor’s Office raises concerns over gambling addiction
According to prosecutor Paulo Binicheski, who is leading the case, the discussion extends beyond purely commercial issues and involves broader social impacts. He stated that the increasing exposure of the public to betting advertising may contribute to increasing rates of gambling addiction.
The prosecutor argues that campaigns that suggest easy profits or reduce the perceived risk may encourage compulsive behaviour, leading consumers to incur significant financial losses. According to him, the purpose of the lawsuit is to stop practices considered abusive and strengthen collective consumer protection.
In recent months, the issue has been widely debated by Brazilian authorities. In addition to the federal government’s regulation of the sector, the Secretariat of Prizes and Betting (SPA) of the Ministry of Finance has introduced responsible gambling requirements, including self-exclusion tools, bettor identification procedures, financial limits and mechanisms aimed at preventing gambling addiction.
Requests include changes to influencer contracts
In addition to seeking BRL120 million ($23.38 million) in damages, the MPDFT is requesting several preliminary measures. Among them is the immediate suspension of contractual clauses that remunerate influencers based on bettors’ losses, the volume of bets generated or any similar financial incentive model. If the order is not complied with, the Public Prosecutor’s Office requests a daily fine of BRL1 million ($195,740).
With regard to Virginia Fonseca, the lawsuit also requests the removal of advertising content considered irregular from her social media accounts. The request includes posts that, according to the MPDFT, promise unrealistic profits, mislead consumers, encourage betting on specific sporting events or use techniques known as dark patterns, design features capable of influencing users’ decisions in a non-transparent manner. The Public Prosecutor’s Office also challenges advertising content embedded in personal posts that does not clearly identify it as sponsored content.
If these orders are not complied with, prosecutors are requesting a daily fine of BRL500,000 ($97,870).
Defendants deny wrongdoing
In a statement released following media coverage of the lawsuit, Virginia Fonseca’s legal team said it became aware of the proceedings through the press and stated that it will respond to the allegations through the courts.
Her lawyers said that investigative steps ordered by the Public Prosecutor’s Office remain pending, including requests for contracts and other information considered essential to clarify the nature of the influencer’s contractual relationship with Blaze. The defence also rejected any allegation of predatory conduct, collusion or intent to harm consumers, arguing that any liability must be based on concrete evidence.
Foggo Entertainment, the company responsible for Blaze, stated that it had not yet been formally served with the lawsuit. In a public statement, the company said it remains committed to transparency, regulatory compliance and responsible gambling guidelines, adding that it will provide the necessary clarifications to the authorities once it is officially notified.
The case will now proceed before the courts, which will examine both the requests for urgent relief and the merits of the allegations presented by the Public Prosecutor’s Office. Until a final judicial decision is issued, both Blaze and Virginia Fonseca continue to contest the allegations and deny any wrongdoing.
This article was first published on the Portuguese SiGMA News page on 13 July 2026.
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