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A daily podcast delving into the biggest stories of the day throughout the sports betting and igaming sector.
Fernando Noodt (00:00:00)
Brazil's regulated betting market has barely found its footing and it's already facing its biggest advertising controversy. A single World Cup broadcaster has sparked investigations from multiple authorities, reignited the debate around gambling marketing, and raised questions that could reshape how operators, media companies, and regulators work together. In this episode of iGaming Daily, we'll unpack what happened, why it matters.
And whether this is an isolated case or the beginning of a new era for advertising in Brazil. We'll also explore what industry leaders should be doing now to stay ahead of rapidly evolving regulatory landscape. Welcome to iGaming Daily, brought to you by Optimove, the creator of Positionless Marketing and number one player engagement solution for iGaming and Sports Betting Operators. I'm Fernando Nott, Media Manager for SVC, and your host for today, where I'm joined by two.
Brazilian journalists, aka researcher, editor, all players of all the f all the field, right? Leonardo Viazzi, editor for SBC Noticias Brazil, how are you today?
Leonardo Biazzi (01:36.37)
Hello, Fair. Hello guys. It feels good to be back here to be honest. And it's it's even greater that we have this opportunity to talk about the World Cup.
Fernando Noodt (01:45.187)
Yeah, absolutely. And Anna Maria Menezes, researcher for S V C. How are Anna?
Ana Maria (01:50.433)
Very happy fit. just passed another phase in the World Cup in with Brazil, so very happy and yeah, excited to talk about this first test of fire that we're having here in Brazil right now.
Fernando Noodt (02:06.456)
Yeah, at the time of this recording, the round of thirty two is being played still. England has made it through, despite struggling with c with Congo. Brazil has made it through. Argentina is yet to play, hopefully, will beat Cabo Verde, Cape Verde, and and move on. But I th I said you guys were players of all the field, pretty much like who, Casimiro? Who who who do you identify with Anna?
Ana Maria (02:33.998)
Who identify with? that's a pretty good question fair. I'm gonna let Leo answer first, because I've never even thought of that.
Leonardo Biazzi (02:43.527)
Yeah.
I identify myself with Aendrick just because he's that raw talent, like he doesn't give a care, he just do what he feels like to, so I'm pretty much into Aendric.
Ana Maria (02:52.706)
Ha ha ha.
Fernando Noodt (02:58.562)
And your manager doesn't like you?
Leonardo Biazzi (03:00.606)
Luckily my manager treats me better than Ancheloch treats Endric at the moment.
Ana Maria (03:01.166)
Is he stopping you from drinking water, from playing, from doing everything?
Fernando Noodt (03:04.932)
Yeah, yeah.
Fernando Noodt (03:13.056)
All right. Alright. Anna?
Ana Maria (03:13.422)
I do think and I know this conversation does not make me happy. I feel like I'm Neymar. I'm constantly injured and never being able to do any type of sports. I'm very sorry for myself right now about this.
Fernando Noodt (03:21.88)
Okay.
Leonardo Biazzi (03:24.35)
Yeah.
I'm very surprised.
Fernando Noodt (03:28.322)
I I'm a Yeah, yeah, absolutely. I'm a I'm a Rodrigo de Paul type. I'm a I'm a guy that I just sacrificed myself for the team. So you guys listening out there, le leave leave your comments and say who who you are identify with in your national team. But now let's go to the story that's raising some eyebrows in Brazil. So let's break it down in general. What's Cassette V, the broadcaster that's in in in
Ana Maria (03:39.49)
That's cute.
Leonardo Biazzi (03:42.558)
Mm-hmm.
Ana Maria (03:43.895)
Ha ha
Fernando Noodt (03:58.019)
and on the spotlight and what has the government decided about them?
Leonardo Biazzi (04:02.116)
So Cassete Vfer dates back from 2022. It was a really last-minute project back then. This very famous streamer in Brazil, Casimiro Miguel, he
Got the rights through KZTV to broadcast the World Cup of 2022 in in YouTube. And then like it was a really big thing in Brazil because you were able to watch games for free as long as you had internet. And they carried on with that project. And nowadays they broadcast like lots of football tournaments. They are broadcasting tennis also. And they are backed by this company called Live Mode. Live Mode is getting really big.
Big, like they expanded to Europe. They are backed by Cristiano Ronaldo, even. So they're a big player.
Fernando Noodt (04:56.046)
Okay, so has this KTV case become like a a big thing for Brazil, right? what's what's exactly what what the government said to them or what the authorities said to them? There are actually pretty there's actually several agencies that have targeted Casset V and their way of advertising gambling, right?
Ana Maria (05:20.557)
yeah, actually what what happened, what we saw is that Kazat TV, we were actually commenting this off as well. They were broadcasting a lot of sports betting ads, either during breaks, during the matches as well. So the the narrators would sometimes stop to mention something about odds, and then that made people start to comment online. Actually, people started to comment online on that and mention how upset they were about the number.
Of betting ads that were coming up all the time. And because of that, that again sparked a lot of reaction and it led to Erica Hilton. she's one of our deputies. She then signalled and asked for for basically putting a stop into this advertisement during the World Cup. She didn't mention Kazatve by name, however, of course, it impacts Kazatv as well.
And it led to the Ministry of Justice and then the Ministry of Finance. sort of an administrative process. And we saw this one against Bat Three Six Five, Bad Nacional, and KTO, Kateo, as we say in Portuguese, about the as a word shown on Kazate V.
Leonardo Biazzi (06:38.374)
Yeah, one big thing is that Kazetv is broadcasting all the World Cup games in Brazil. And this is also our first World Capesing World Cup since the market was regulated. And I feel like there's a there's this surge in Brazil of betting since 2023, right, Anna? Like that's when I remember that we started seeing more betting in broadcasts. And for
Ana Maria (06:46.049)
Mm-hmm.
Leonardo Biazzi (07:07.774)
For this matter, I think that a lot of people were upset or angry online. It's because they don't watch football. Like I've been watching football for all my life and these past series, like I got used to betting b betting ads. But like my mom, for example, she just watched Brazil in the World Cup. So one of the things she commented to me is was like, why are we seeing so many betting ads? Like, z is this foot what football has become? But I think
It's it's a matter of adjusting your your expectations and get getting used to it in some way.
Fernando Noodt (07:46.341)
Yeah, I think the World Cup is a good test for betting companies to see where the limits are. Of course, this is being something that we have we have been discussing for some time now. so how how far can betting companies go in this in this sense? But I've s we've seen this something similar, of course, is it has
only to do with this is that is betting advertising but in Argentina there's a company that produced an an ad with an AI generated speech by Diego Maradona talking about betting and so people did not like that. So I think we are found finding some limits to what betting advertising can do and what it can't do. So going back to Cassette V
Ana Maria (08:23.797)
Fernando Noodt (08:38.562)
Do you think this case can become the first real stress test for Brazil's new gambling advertising framework if if if the country is going to push any at all?
Leonardo Biazzi (08:50.29)
Yeah.
Ana Maria (08:52.167)
Yeah you can go first though is fine.
Leonardo Biazzi (08:53.286)
No, even though I said I'm used to it, I I'm used to it to to the gambling ads nowadays, I do think I I don't know if Anna agrees with me, I do think that Kaz TV might have crossed the line in a bit in some of the odds in some of the ads, especially how they were promoting some odds, like they were really excited about it. Like come on guys, like this is your opportunity, like go and then show a QR code on the screen. And some of the
The betting campaigns that were taken down or recommended to be taken down, they associated betting with the love for the game. This is what the government doesn't want to. But to pass the ball to Anna, I do think that this is going to be a big mark in Brazil. They were pissed at Casseta V, but they are going to introduce more rules.
going to make betting houses they're gonna force them to include like an like a warning for risk like betting like can be bad for your financials and for your mental health for example this is being debatable.
Ana Maria (10:10.506)
Yeah. honestly I I do believe that they might have crossed the line on the emotion. because we know that there's a lot of the emotional component when you're watching the World Cup. So I I do agree with that. at the same time it's hard to say what is the game and what is incentivizing just betting there because again, it's a very mixed environment and this is not traditional
TV advertising. So there's no commercial break that is clearly separated from the narrators in the World Cup. And I do think that this is the biggest problem because you're mixing the content with an ad. and this, even though we know that this is something that is the sort of the line from now on when you're talking about consuming social media, people are a bit tired of ads per se. It's much easier when you introduce the ad into the content so the person is actually interested in that.
However, this is not the case that we can actually do it. And it's it it it's stated and Brazil, the the government is clearly very against mixing the editorial content, so in this case the games with
And that sort of like mix together because the emotion plays such a big part here and it's exactly what they have been talking about a lot. So yeah, I do think this is the biggest case that we're gonna have maybe in a while, and it does set a precedent for the women's world cup next year, for the next World Cup, for the next tournaments as well. But of course, nothing nothing is as big as the World Cup to Brazilians. So this is probably the biggest one that we're gonna have in a while.
Leonardo Biazzi (11:41.998)
Yeah and no as as I said for me it's not normal that we had Cassette Vit done that thing with the call to action, like here is the all like go there, like take go for it. Like it's for me it's a bit excessive.
Fernando Noodt (11:42.326)
And before we go into the break, yeah, go ahead, Leo.
Fernando Noodt (12:03.63)
Yeah, definitely. And and what what was the response by KTV to these to this to to being pointed at by by by the government? What what did they do?
Leonardo Biazzi (12:14.362)
So Cassette V recognized that this is a whole new market for them, that they're still learning how to how to
how to show those betting ads, they sort of apologized for it and said that they would do more formal activations. So thing is with Cassetta V they're really loose. Like their their broadcast is very laid back. It's almost like it's unserious, especially if you compare them to traditional TV. So they already said they would tone down and I've what I've been watching the World Cup only on Cassette V and there's a clear difference from what they were
doing in the group stage to what they're doing now in the round of thirty two.
Ana Maria (13:00.958)
Yeah, they stopped mentioning live odds during the matches. so it's they were pretty fast with the with tracing the lineback and doing it different.
Leonardo Biazzi (13:12.242)
But it will be interesting for to see what the government will do with Bat Nacional, Bat three sixty five and KTO. They'll have to provide answers for the betting ads that they they showed on Casa TV and the the punish punishment for the government can go as far as revoking their license in Brazil. Like I don't I don't think that's going to happen, but like it can go as far as that.
Fernando Noodt (13:41.765)
We'll have to hashtag wait and see what the government decides on on on this. But first, before we continue to to discuss this whole story, we're gonna do a very quick outbreak, but we will be right back with more i gaming daily. Okay.
Leonardo Biazzi (14:00.862)
good guys. I don't know if I talked a lot.
Fernando Noodt (14:04.406)
No, it's perfect. It's perfect. I think we overextended our our playing time in the beginning, but it's fine. Yeah.
Leonardo Biazzi (14:10.136)
Ha ha ha.
Leonardo Biazzi (14:15.056)
Yeah, we call that in Brazil nariz de cera, like when you take your time. Nariz de cera, yeah. Yeah. It's like when you're reading an article and the writer takes like three paragraphs to get to the point that's a nariz de cera.
Fernando Noodt (14:19.586)
Naris acera. Wax nose. Okay.
Ana Maria (14:19.735)
Yeah.
Wax knows.
Fernando Noodt (14:34.184)
Okay. Okay, let's go. And we're wait for the bike.
Leonardo Biazzi (14:42.694)
of course. Same in Brazil, man.
Ana Maria (14:44.019)
Of course.
Fernando Noodt (14:53.462)
And we're back with more iGaming Daily to continue discussing the advertising case in Brazil with KCTV presenting gambling ads in its broadcasts that have raised some concerns in the Brazilian government. Guys, you were saying that this could bring some consequences for the operators, but I would like to stay with the broadcasters. Of course, KCTV has a a different style than traditional than traditional.
broadcasting like you would watch on a on a regular TV channel. But could this investigation on Cassetv affect every other sports broadcast in Brazil? not just the the the streaming type broadcast but also the the T V channels?
Leonardo Biazzi (15:39.388)
Yeah. Yes.
Of course, the government is already looking at the other broadcasts as well. It's just that KazTV has gotten more of the the heat for it because they are broadcasting broadcasting all the matches and a lot of people just prefer to watch on them since they can find all the matches there. But they're looking into global, SBT, any sports which is broadcasting the World Cup in a partner partnership with SBT.
And I think like this is gonna this is going to change the way that we do betting advertising on TV. Like the the Minister of Finances or Minister of Economics in Brazil was very like clear that things are going to change. And it's going to change, I don't think, through like a presidential decree. They will try to do it internally through the Secretariat of Bets and Prices.
Ana Maria (16:44.891)
Yeah, I do believe that also it's important when we think about this precedent that they created for live odd mentions. I do think this could be the biggest hit in a way. because if the government decides that mentioning odds during a match could cause, you know, like excessive
urgency or pressure, then they might actually have to move towards a very traditional ad and with much less integration. And I do believe that marketing wise, this is not exactly what you want, but it's probably what they're gonna have to do in the future. Not gonna lie. I do believe that this is what we're gonna what we're heading towards.
Fernando Noodt (17:25.784)
Yeah, that's exactly what I was going to ask. Is this is this just a case of of one or or a bunch of betting companies crossing the line using this this different style that KCTV has? Or is this actually something that will will drive companies to to rethink their marketing strategies? And what would you guys say? what what should international operators do to adapt their their their global marketing strategies to fit Brazil's
like evolving or ever changing landscape of course we'll see we are seeing a lot of of different things going around, potential revocation or or or derogation of the of the gambling regulation bill and then the gambling advertising new gambling advertising framework being discussed. So so do you actually think that international operators should should approach carefully now after this has happened?
Ana Maria (18:12.075)
Yeah, for sure. And I do believe that they also need to understand that the Brazilian, the common Brazilian, is also very a I do believe that the common Brazilian has two steps back when it comes to betting.
We have a precedent of a boom of sports betting or just online gambling during the pandemic. We had this big boom and this big boom of irresponsible advertising. So Brazilians are a bit more wary of that already. So this is something that also international players have to understand when they're coming to Brazil, is that you're also facing a big scrutiny coming from the public.
So it's not something only related to okay, I have to please the government. You also have to sort of break through that you know, the that lay that that overlay that Brazilians have of not really trusting ads anymore because we had this big boom, negative boom in the past, 2020, around that time.
So I do believe that international players also have to understand that when they decide to come here, so we know that by this from this whole casette thing, we know that people who are watching are paying attention to what they're saying, how they're saying, how many times they're saying it. Again, it's it's creatinity and it comes not only from the government, it comes from the public. So they have to understand that the Brazilian public is not sometimes the biggest fan.
of those ads and I do believe that this Kazet TV strategy was exactly to make it a bit more friendly. It did backfire though, precisely because how they did it, this urgency and all of that is something that already makes Brazilians think, okay, I do not think that you should be creating this urgency. Because urgency leads to some other problems in the future. And in this case I do agree with them because you don't know the other person who's watching your streaming, your broadcast.
Ana Maria (20:31.657)
You don't know if someone who who is struggles with gambling. I've read people like mentioning that they're not watching the World Cup because they they realize that it it made them want to bet so much because they were watching the game. And some people said that they are not even watching the the broadcast because of that. So I do think it's something to take into consideration to take into account that it's impossible not to mix the World Cup with high emotions with not only high emotions but
with understanding who your ed is targeting, the outcomes with that. Because clearly all Brazilians are watching, not only the government.
Leonardo Biazzi (21:10.122)
And I think Anna will agree with with me. It's one thing to have a more boring ad in a way than it is to to have Galvan Bueno, which has narrated like fifteen World Cups nearly, and to show him during the cooling break, like, put your passion to game, like here's the QR code. Like that's massive, like to have an asset like Galvan, like everybody in Brazil knows Galvan, and he gives that that sense of
Ana Maria (21:24.841)
Mm-hmm.
Leonardo Biazzi (21:39.936)
you can't trust this this thing, like, because of course, like why wouldn't you hear what Galvan is saying?
Fernando Noodt (21:51.929)
Yeah, absolutely. And this brings me back to Argentina and and that the Maradona message. And and and makes me think really if
we are not about to see some regulations like we've seen in in other countries where celebrities, athletes and everyone involved in in sports is being banned from participating in in this type of of these types of ads. So before we wrap this this up, I'm also curious to see what commercial implications this this will have. I don't think it will be it will have some so s that big of an impact.
But I think that broadcasters will definitely look more thoroughly when signing a deal with a with a betting operator for for advertising. They will definitely look more thoroughly into what the campaign is about and all that. but what do you guys see as the biggest lessons op both operators and broadcasters should take from this cassette case? Anna, you wanna go first?
Ana Maria (22:57.499)
Yeah, sure. I do believe that the first thing that we need to the immediate impact is that those media partnerships will probably become like we talked about more conservative and more structured, so less natural as we would say it.
so we of course broadcasters will still want betting sponsorships because they are commercially important. it's a lot of money going around this industry and of course it needs to keep rolling. especially for sports rides or free-to-wear or free digital coverage models. and I do believe that Kazeta V itself made a point that advertising helps make major sports events available to the Brazilian public for free.
So of course we would love if things were just easier and we could just broadcast all the games everywhere, but they do rely a lot on advertising to make that happen. but I do believe that the format is definitely gonna change. I do believe that media companies may and should start emitting more detailed legal review from their betting partners. and the operators on the other hand, I do believe that they could be more cautious about campaigns that maximize engagement.
but also increase regulatory exposure like we've seen. So we're talking about the fees and the the fines reaching almost two billion hays. It could reach that. That's a lot of money to lose over ads like that. so yeah I do believe that this is what w we're gonna see from the media partners in this next month or a year.
Leonardo Biazzi (24:36.298)
I think it's pretty clear that for the broadcasters if they have to adapt and tone down
and and tone down the game the betting ads, they'll receive less money because the the ads an ad without Galvon for example is less cool than a boring and traditional ad. So on that way that's that's really that could be really harsh for Kassette V because they are
making these broadcasts available for free a lot because of the gambling advertising. Like Cause even Casimiro or Kassette, the face of Kazet TV, has said in the past he has been criticized for showing like lots of betting ads during the broadcast. And he simply said like I can't take them down guys. Like they're banking like this whole thing. So there could be some some major implications for for Cassette and and all the others for on that matter.
Fernando Noodt (25:37.689)
Yeah, we'll definitely have to hashtag wait and see what happens with KTV. Probably they're gonna stick with Betty Nuts. maybe they'll just tone them down a little bit and rethink the way they communicate them. But if you wanna stay up to date with what happens both with Kasset V and Brazil in general, make sure you are subscribed to SBC Noticias Brazil's newsletter and of course all SBC Media newsletters to keep up to date with all the world worldwide.
gaming industry news will definitely definitely keep an eye out for what happens in Brazil with this particular case and what it may bring for Brazilian advertising regulation. But that has been all for today on iGaming Daily. Thank you very much, Anna Leo, thank you very much AnnieGay McDonald for producing this episode. I'm Fernando Not and to our listeners out there, we'll see you in the next one.