iGaming Operator Blaze Responds to Recent Controversy in Brazil

Posted on: June 21, 2023, 07:58h. 

Last updated on: June 21, 2023, 10:14h.

Erik Gibbs Read More
Expertise: Asia Pacific Gaming, Gaming Business, Global Gaming.

In Brazil, iGaming operator Blaze.com’s ethics have been disputed, leading to heated discussions among members of the country’s gambling community. The operator has now responded to the outcry, going so far as to threaten possible legal action against its detractors.

The Blaze.com logo on the front of Brazilian soccer team Santos FC's jersey
The Blaze.com logo on the front of Brazilian soccer team Santos FC’s jersey. The iGaming company has responded following recent backlash in Brazil. (Image: Santos FC)

The controversy was triggered by a video by YouTube personality Daniel Penin, “Take from the poor and give to influencers.” After the content gained immense popularity, reaching 4.8 million views as of Wednesday, a wave of negative feedback was directed toward the betting platform.

Blaze.com acknowledges that these accusations might stem from a lack of understanding of its procedures, and it has been eager to respond to and clarify any concerns. In a statement, Blaze said one of its goals is to provide the “necessary transparency” about its operations to prove that it’s an “honest and legitimate” gaming operator.

The Public’s Got it All Wrong

At the center of the controversy, Blaze is accused of paying a commission to some of its influencers — such as soccer star Neymar — if their followers lost money on the gaming platform. Blaze categorically rejected the idea, adding that it neither pays commissions nor shares revenue over losses.

Instead, according to the statement, the compensation of influencers is determined by a set rate in exchange for their brand-related content. Consequently, their motivation aligns with that of the platform and its staff. Blaze added, “Our goal is to foster a community where everyone can thrive together.”

Reports suggest that Penin may have sought retribution by sharing contentious material regarding the brand. Blaze.com asserted that it doesn’t condone or partake in any bullying or intimidation toward individuals sharing their opinions regarding the platform. On the contrary, it welcomes constructive feedback, backed up by factual evidence and personal accounts, which can inspire “improvement and innovation.”

Blaze has expressed its intention to consider legal action if it encounters any problems that could negatively impact its reputation or job. If that happens, it warns that it will take appropriate action to tackle any malicious or slanderous accusations toward it, or any of its affiliates.

This could initially include requesting the removal of inaccurate data or starting a conversation to clear up any misinterpretations. If those efforts fail, it could “seek legal advice” about how to more strongly defend itself.

Brazil’s Regulated Sports Betting Market Coming Soon

Blaze and other gaming operators are waiting for Brazil to finalize its sports betting regulations. It’s been a long road to get this far. But it’s possible that the legal framework could still appear before the end of the month.

A provisional measure (MP) to regulate the online betting sector is in its final stages of approval. Media outlet O Globo reports that it’s possible the MP could appear in Brazil’s Official Gazette in the next 9-10 days.

There are currently around 3,000 online betting sites that are accessible in Brazil, according to the media outlet. However, they are hosted outside the country, which could be a problem. The MP will reportedly contain language that mandates all operators to have a primary office in the country.

What that means for Blaze remains to be seen. The operator holds a license from Cura?ao and admits that it has no office in Brazil. If it wants to legally continue to offer its services in the country, it will likely have to come up with a solution quickly.