Streaming giant lands in gambling soup

One of the world’s most-watched live YouTube channels is drawing scrutiny from regulators after heavily promoting betting to young people during World Cup broadcasts.Brazil’s CazéTV has attracted blue-chip sponsors and even viewers abroad hunting for VPN workarounds, since it’s the only YouTube channel in the world where fans can watch all 104 matches for free.

It’s breaking YouTube audience records, challenging traditional broadcasters and reshaping how millions of young Brazilians watch live sports.Its on-air crew has also delivered a running commentary on odds and wagers during the World Cup, igniting a controversy that’s culminating in new government restrictions on advertising to be introduced Friday.Banter about gambling has become familiar to viewers in Europe and the US as betting businesses become key sponsors of sports broadcasts.

One Washington Post report this year measured an average of one betting ad every four minutes on televised US games.

Critics say the advertising blitz is sullying sports, pointing to some high-profile arrests of US athletes accused of manipulating statistics to influence betting markets.132309038To Brazilians, the constant patter about betting on a youth-focused channel has also hit a nerve.

Sports betting was legalized in Brazil in 2018, but it really took off in the past decade with the advent of fintech companies offering credit cards to people who had never had them before.

A digital payment system created by the central bank, called Pix, also inadvertently eased the flow of online betting.President Luiz Inácio Lula da Silva began imposing new rules in 2023 to try to rein in the industry, which the central bank and retailers have blamed for siphoning away spending that used to go to economic growth.Against that backdrop, CazéTV’s broadcasts of football’s signature event have become a hot topic in a nation crazy for the sport.

The controversy over gambling threatens to overshadow what was supposed to be the 4-year-old channel’s big moment, where it was to showcase its irreverent, youthful take on sports commentary.Also read | Mbappe makes history, becomes fastest player to reach 20 FIFA World Cup goals“Betting companies are entering the market with enthusiasm and a desire to be a part of the world of sports and entertainment,” said Eduardo Halpern, a professor at Escola Superior de Propaganda e Marketing in Rio de Janeiro.

“However, in the case of CazéTV, I think it ended up drawing the attention of society as a whole because it was done in a very aggressive manner.”CazéTV has its roots in a Twitch livestream operated by Casimiro Miguel, a loquacious Brazilian who gained followers by broadcasting his humorous — and often profane — reactions to other video clips.

He’s the face of the channel, with sports media company LiveMode Servicos Digitais SA as the behind-the-scenes partner securing the World Cup rights.

He calls live matches in internetspeak, sounding more like a gamer running through Call of Duty than a traditional football presenter.The channel is operated by LiveMode, which is backed by investors including General Atlantic and XP Inc.’s private equity arm.

In May, Cristiano Ronaldo became a shareholder in LiveModeTV, the group’s international division.Amid CazéTV’s colorful commentary, Brazilian regulators say, there were ads that created the urgency to bet, as well as risk warnings and age-restriction notices displayed in type too small to read.

Under Brazilian law, betting ads must include clear warnings about the risks of gambling, including addiction, and can’t target young people or present gambling as a way to get rich or as an investment.Also read | World Cup 2026: Your go-to guideBrazil’s consumer watchdog, Senacon, opened an inquiry into possible irregularities in sports-betting ads aired on CazéTV on June 24 — the day Brazil downed Scotland to wrap up the group stage.

Advertising regulator Conar is also reviewing gambling promotions read by presenters and commentators.The country’s soccer federation excluded CazéTV from the bidding process for the Copa do Brasil tournament broadcasting rights for 2027 through 2030, saying it didn’t meet technical and financial criteria.

It didn’t specifically cite the betting ads.The Finance Ministry, meanwhile, has asked four betting operators and two media companies to explain World Cup advertisements it says violate Brazil’s betting rules.

The ads in question have been pulled and the case could result in fines of as much as 2 billion reais ($388 million).And on Thursday, Finance Minister Dario Durigan told reporters the government will issue two decrees Friday establishing new rules for online betting platforms.

Ads will need to be accompanied by a warning that says, “Finance Ministry warns: Gambling makes you lose money, gambling can cause addiction, and gambling is not an investment.” And there will be zero tolerance for ads that target children and teens, he said.In a written response to regulators, CazéTV said it would adopt a more specific and conservative standard for betting-related spots in its broadcasts, moving them toward a more traditional advertising format.

The channel also said its betting ads comply with Brazilian law, Conar guidelines and industry best practices, and that it works only with operators licensed by the Finance Ministry.‘Fresher Language’The YouTube channel was launched in 2022, when it streamed 22 matches from that year’s World Cup after local broadcasting giant Globo Comunicacao e Participacoes SA gave up its exclusivity as the pandemic squeezed its budget.LiveMode founders Edgar Diniz and Sérgio Lopes had met Miguel, now 32, when he worked for their previous broadcasting company, Esporte Interativo.Part of CazéTV’s appeal lies in how it reimagined watching sports.

Instead of focusing only on the match itself, the channel wraps the match itself in hours of pre- and postgame programming, encourages constant interaction through YouTube’s live chat and uses a more informal tone than conventional television.“They brought a fresher language to a type of content that had followed the same format for decades,” Halpern said.Built around the popularity of Miguel, the channel has grown into one of Brazil’s most influential sports-media brands.

CazéTV was nearing 40 million subscribers on YouTube by July 7, about 11 million more than when the World Cup began on June 11.

It also has more than 33 million combined followers across TikTok and Instagram.Beyond YouTube, its broadcasts are also carried on platforms including Prime Video, Disney+, Samsung TV Plus and Sky+.The format has also attracted advertisers.

CazéTV and YouTube sold sponsorship packages for the World Cup worth roughly 2 billion reais, according to Brazilian media reports.

Unlike conventional television, where commercials are largely confined to breaks in play, CazéTV weaves spots throughout its hours-long live coverage, giving brands exposure before, during and after matches.“The biggest draw is the convenience,” said Vinnícius Morelli, 30, director of an endoscopy equipment company, who has been following the World Cup matches on CazéTV.

“It’s a great experience because we can easily watch any match on our phone or computer, from anywhere.”Morelli has followed Miguel since the days when he streamed on Twitch and praised CazéTV’s relaxed, informal style.

While the betting advertising on the channel bothered him, he noted gambling companies also promote their services on free-to-air TV.It’s “a broader problem of the current era,” he said. ...