Brazil Update: influencer targeted in illegal betting probe, City considers municipal lottery

Brazilian authorities intensify crackdowns on betting-related activities, from criminal investigations in Mato Grosso to new municipal lottery proposals.

Brazil’s betting landscape saw two significant developments this week: a criminal operation targeting an influencer in Mato Grosso and a new proposal for a municipal lottery in São José dos Campos.

Influencer targeted by Police operation in Mato Grosso

The national Civil Police launched an operation investigating schemes involving drug trafficking, illegal betting, fraud and money laundering. 

Among the targets was Dainey Aparecido da Costa, known online as Deniz Bet, a 34-year-old influencer who frequently promoted betting links and claimed to have earned more than BR5m through online games.

Authorities allege Deniz has ties to criminal factions and was involved in exploiting illegal betting platforms. He had previously been arrested on drug trafficking charges.

The court issued 10 preventive arrest warrants, eight search and seizure orders, and froze BR13.3m in bank accounts linked to suspects. 

It also authorised the seizure of eight properties and luxury vehicles registered under the names of group members.

The investigation began in December 2023 after gang members disrupted a community meeting in Cuiabá, mistakenly identifying it as a political event. 

From there, police mapped the group’s structure and influence across the region, uncovering the illegal betting ties.

Good to know: Piauí State created an educational program to raise awareness among children and teenagers about the risks of gambling and betting addiction

Municipal lottery proposal in São José dos Campos

Meanwhile, in São Paulo state, the City Council of São José dos Campos is preparing to vote on Mayor Anderson Farias’ proposal to establish a municipal lottery.

The proposal allows the lottery to be operated directly by the municipality or through concession, authorisation or permission.

Mayor Farias described the initiative as an alternative to generate revenue for public policies while enabling greater regulatory oversight at the local level. 

The project mandates that all other agenda items can only be voted on once the lottery bill is addressed. 

However, the project does not include financial impact studies, repeating concerns that led to the mayor’s own veto of a similar council-backed bill in 2024.

If approved, São José dos Campos would join a growing number of Brazilian municipalities considering lotteries as alternative funding sources.

Alex Rivera

Writer

My goal is to explain how gaming, esports, and betting intersect in ways that readers can actually understand, without stripping away the entertainment that makes the space compelling.

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