Meta Ordered to Remove Ads for Unlicensed iGaming Operators in Brazil

Meta Ordered to Remove Ads for Unlicensed iGaming Operators in Brazil

Brazil’s Attorney General’s Office (AGU) has issued an extrajudicial notice to Meta, demanding the removal of hundreds of ads promoting offshore iGaming and online betting operators without authorization in the country.

Meta has 48 hours to comply, after which the AGU may take the matter to court to enforce removal and impose fines.

Reasons for the Takedown Request

The AGU stated that ads promoting unlicensed services may be linked to tax evasion, money laundering, and violations of consumer rights.

Under Brazilian law, licensed platforms must hold authorization from the Ministry of Finance and operate under the .bet.br domain.

Legal Framework

  • Law No. 14,970/2023 regulates fixed-odds betting activities, including online gaming.
  • Ordinance SPA/MF No. 1,207/2024 mandates official authorization from the Ministry of Finance to operate in Brazil.
  • Approved operators are required to use a .bet.br domain.

Scale of the Problem

Meta’s Ad Library revealed hundreds of active ads from accounts that fail to meet legal requirements. These campaigns promoted betting apps and websites operating without licenses.

Violations and Potential Consequences

According to the AGU, such ads qualify as illegal advertising and may be connected to:

  1. Fraud and user deception
  2. Money laundering
  3. Crimes against consumer rights
  4. Other unlawful activities

Platform Liability

The AGU referenced a recent Supreme Federal Court (STF) ruling confirming that digital platforms can be held liable for illegal content in cases involving paid ads and sponsored posts.

In such cases, companies must prove they acted promptly to remove the content.

AGU’s Requirements for Meta

Requirement Deadline
Remove all identified illegal ads 48 hours
Prevent future promotion of unlicensed operators Ongoing

AGU’s Position on Meta’s Actions

The agency acknowledged that Meta has taken some steps, including promising to update its advertising terms regarding gambling. However, the AGU believes the ad review process still has significant gaps that need to be addressed.

Conclusion

The AGU’s actions aim to protect consumers and ensure that only licensed operators can operate in Brazil’s market.

Violating these regulations not only leads to administrative and legal actions but also undermines user safety and trust in digital advertising.