Police operation in Brazil reveals how online betting scams are evolving
A multi-state operation conducted by the Federal District Civil Police (PCDF) has revealed new details about the challenges accompanying the rapid development of Brazil’s iGaming market. As the country advances in regulating online betting and establishes itself as one of the sector’s most promising global markets, authorities are also intensifying efforts to crack down on illegal platforms and digital fraud schemes.
The PCDF, responsible for criminal investigations in the Federal District, where Brasília, Brazil’s capital, is located, executed warrants in seven states: Federal District, Goiás, São Paulo, Maranhão, Paraíba, Rio de Janeiro and Bahia. According to authorities, the group under investigation used manipulated betting platforms, fake accounts and digital influencers to attract victims through social media. Investigators estimate the scheme moved approximately BRL11 million ($2.25 million).
One concern in the Brazilian market is that as online betting gains popularity and enters the regulatory process, the number of fraud cases linked to illegal platforms and digital manipulation schemes is also increasing.
Demo accounts, fake winnings and social media
According to the investigation, suspects used technologies to conceal their identities, including proxies and intermediary servers. The group also used “demo accounts” (demonstration accounts normally used for testing) to simulate fake winnings in videos published on social media.
The strategy was designed to create the impression that making money through online betting was easy. Influencers linked to the scheme displayed supposedly large profits, luxury lifestyles and manipulated betting sessions to persuade followers to deposit money through fraudulent links. According to the PCDF, the funds sent by victims were diverted without any real bets being placed.
Investigations began following an operation carried out in 2024 at the residence of an influencer in Brazlândia, an administrative region of the Federal District. He is suspected of promoting fake winnings and directing users to manipulated platforms.
According to police, the scheme operated in a highly organised manner, with roles divided among recruiters, technical operators, financial managers and intermediaries connected to foreign platforms.
Growth of betting in Brazil has also increased risks
The operation comes at a time of strong growth in Brazil’s online betting market. Data from Blask, a market intelligence platform focused on the iGaming sector, shows how Brazil has become one of the most relevant markets for online operators in recent years. The company develops its audience profiles by combining user surveys, market analysis, and AI models, which are later validated against real industry data.
User profile information released by the platform indicates that Brazil’s betting audience spans a wide age range. According to the data, 29 per cent of players are between 18 and 24 years old, while 25 per cent are between 25 and 34 years old. Another 22 per cent belong to the 35-44 age group, and 24 per cent are between 45 and 54 years old. The figures show that the sector not only reaches young adults but a much broader, more diverse portion of the Brazilian population. Even so, the fact that the largest share of users is concentrated among those aged 18 to 24 reinforces authorities’ concerns about the impact of betting on younger audiences, especially in an environment dominated by social media, influencers, and promises of quick money.
Income data also helps illustrate the scale of this market. According to Blask, 30 per cent of Brazilian online betting users have an annual income between BRL40,000 ($7,200) and BRL60,000 ($10,800). Another 25 per cent fall within the BRL60,000 to BRL80,000 range ($10,800–$14,400), while 20 per cent earn between BRL20,000 and BRL40,000 ($3,600–$7,200) per year. The figures suggest that the Brazilian market is not composed solely of low-income users, but rather a broad base of economically active users, helping explain why the country has become so strategic for both domestic and international operators.
This rapid growth has created an extremely profitable environment not only for regulated operators but also for fraudulent schemes that use social media to attract victims. Young adults are considered a particularly vulnerable audience in this scenario, as they tend to have greater exposure to viral content, digital influencers and aggressive online advertising campaigns.
Influencers have become a central element
One of the main issues highlighted by the investigation is the role of digital influencers in promoting these platforms. In recent years, betting-related content has surged on platforms such as Instagram, TikTok and Telegram. Many videos follow a similar pattern: promises of fast profits, “live” demonstrations of winnings and constant displays of money, cars and travel. In many cases, ordinary users struggle to distinguish legitimate advertising from fraudulent content.
The phenomenon became even more pronounced with the popularity of “Jogo do Tigrinho”, the nickname used in Brazil for online casino games inspired by Fortune Tiger and other slot titles that went viral on social media. The spread of this type of content helped transform online betting into a highly shareable phenomenon on digital platforms, creating space for both legitimate operators and misleading campaigns promoted by fraudulent profiles.
Brazilian authorities have already launched investigations involving influencers suspected of promoting illegal platforms or advertising unrealistic winnings to encourage deposits.
The challenge of Brazil’s regulation
Brazil began implementing its regulated sports betting and online gaming market a year and a half ago. The aim is to create a regulated environment with authorised operators, advertising rules and enforcement mechanisms. However, the progress of regulation has also exposed the scale of the black market. According to the PCDF investigation, the group used third-party CPF numbers (Brazil’s taxpayer registry) to create accounts and move money.
Authorities also stated that those under investigation maintained connections with international platforms and used tools designed to hinder financial tracking. In practice, this creates a dual challenge for Brazil: developing a regulated market while combating increasingly sophisticated illegal operations.
More operations are expected
Those under investigation may face charges of criminal organisation and fraud, while investigations continue to identify other individuals involved.
The case also reinforces an important trend: as regulation advances, authorities and licensed operators have been increasing efforts to make the online betting environment safer, more transparent and more professionalised. Authorities expect increased enforcement and operations targeting digital fraud to help strengthen confidence in the regulated sector in the coming years.
This article was first published in Portuguese on 12 May 2026.
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