Brazil’s First Consumer Protection Prosecutor’s Office has launched a civil investigation into Blaze, examining allegations of abusive practices by the betting platform operator Foggo Entertainment Ltda. It’s a significant move in what’s shaping up to be one of the most consequential consumer protection cases against a betting operator since Brazil’s gambling market opened to regulation.

Scale of the Investigation

Over 42,000 consumer complaints filed against the platform triggered this investigation, prompting prosecutors to dig into the company’s operational and marketing practices. Should violations of consumer protection law and sports betting regulations be proven, Blaze could face fines and collective damages totalling up to BRL 120 million (roughly GBP 18 million).

Prosecutors have already moved fast. They’ve requested comprehensive documentation covering the past twelve months, including complaint records from the consumer platform Reclame Aqui. The company faces a fifteen-day deadline to submit critical information spanning account management procedures, fund retention criteria, corporate structure, and anti-money laundering policies.

Core Allegations

Several contentious areas are now under the microscope:

  • Arbitrary account suspensions and unjustified fund retention
  • Disproportionate rollover requirements for promotional bonuses
  • Potentially misleading advertising and marketing practices
  • Data processing compliance
  • Responsible gambling safeguards and self-exclusion mechanisms

Influencer Marketing Under Scrutiny

The investigation’s most eye-catching element focuses on Blaze’s celebrity endorsement strategy. Prosecutors have demanded all contracts and agreements with high-profile marketing partners, including footballer Neymar Jr., influencer Virginia Fonseca, and other prominent figures. They’re particularly interested in advertising guidelines and terminology like “extra income” that could mislead consumers about earning potential.

This reflects something bigger happening across Brazil’s gambling sector. Regulators are tightening their grip. The National Consumer Secretariat has also been ordered to submit all administrative proceedings records within twenty days, signalling coordinated enforcement action across multiple government bodies.

What this investigation really shows is how quickly Brazil’s regulated betting market is maturing. Authorities are drawing a clear line in the sand about consumer protection and responsible gambling standards, and operators will need to meet them.