The regulation of online betting in Brazil is entering its final phase. The government and industry are trying to combat the harmful effects of gaming without attracting more users to illegal websites.
This issue is also a concern for several countries and requires a delicate and challenging balance. According to specialized lawyers, the search for this threshold is complex and international experiences offer valuable lessons.
Taxes for online betting and treatment of gambling disorder
In European countries, where regulation is more restrictive, the legal online betting market is facing difficulties. Because the high tax burden keeps players away from regulated sites, who look for options on irregular portals.
But in the United States, the situation is different. The promotion of online betting is intense, however, there are reports about young people in debt that worry the authorities.
In Brazil, the rules for the sector were defined in a law approved in December last year (LAW Nº 14,790), with ordinances from the Ministry of Finance launched in recent months. However, opinions about the effectiveness of these guidelines are divided.
Experts from the Pathological Gambling Outpatient Program (PRO-AMJO), at USP, state that restrictions on advertising and gambling hours are insufficient. According to them, they are very lenient compared to European standards.
Criticism also arises regarding the lack of investment in health. The new legislation establishes that, from 2025, bookmakers will pay 12.5% tax on profits.
Of this percentage, 2.5% will be allocated to the treatment of gambling addiction, gambling addiction. However, gaming associations warn that high taxation could drive away serious companies, favoring illegality.
Leonardo Benites, communications director at ANJL (National Association of Games and Lotteries), emphasizes that the example of the United States shows that a reduced parallel market is possible with adequate supervision and a flexible licensing regime.
Differences in betting legislation
A study by the economics department at the University of Leipzig reveals that 50.9% of bets in Germany go to irregular websites. In the United States, gambling laws vary between states, allowing operations in 38 of them and the District of Columbia.
On the other hand, the European Union has a basic set of rules, but each country in the bloc can adapt its rules as it sees fit. Therefore, when it comes to advertising and rigor, the laws end up varying a lot.
While Moldova bans advertising from bookmakers, countries like Germany and Portugal limit advertisements to certain times. Brazil, in turn, imposes legal responsibility on bookmakers in relation to compliance with advertising rules.
The return to player rate and its implications
Another concern raised by the new betting regulations in Brazil is the imposition of a minimum rate of return to the player, the RTP (return to player). The government determined that this index must be at least 85%. In other words, for every R$100 bet, R$85 must return to the bettor over a long period of play.
However, the random nature of online betting means that many players may have very different experiences compared to this average.
So, the lack of RTP control on illegal sites can lead bettors to lose more than on regulated platforms, making this issue even more critical.
Measures against money laundering from online betting
The new Brazilian legislation also incorporates measures to prevent money laundering. Therefore, bookmakers must have a corporate structure with an unblemished reputation and implement strategies to monitor suspicious transactions.
All bets exceeding R$10,000 must be reported to Coaf, the Financial Activities Control Council.
Gustavo Badaró, law professor at USP, highlights that financial monitoring is a common practice in several countries. Currently, 215 nations are associated with the FATF (International Financial Action Group), which coordinates actions to combat money laundering globally.
Measures against compulsive gambling
Brazilian legislation also seeks to combat compulsive gambling through stricter control of transactions. This way, each bet will be linked to the player’s CPF, making it easier to identify patterns of problematic behavior.
But, despite recommendations to limit online betting hours, this proposal is not yet included in the new rules.
The market’s resistance to these limitations is due to the profile of bettors, who, for the most part, prefer to play at night. An industry executive confirms that the hours from 10pm to 2am are generally the busiest, even considered prime time.
Brazilian market after betting regulation
The rules governing online betting in Brazil mark an important step in the attempt to formalize and control a market that has long operated outside the law. However, success depends on an effective combination of oversight, transparency and consumer protection measures.
Experts warn that the success of this new legislation will depend, to a large extent, on how Brazilian authorities implement and supervise these new rules.
Furthermore, market adaptation, especially with regards to regulatory compliance and transparency, will be crucial. The ability to attract legitimate operators and minimize attraction to unauthorized platforms will be directly related to the effectiveness of control measures and consumer confidence.
Finally, the experience of other countries can provide valuable insights. Brazil should observe and, if necessary, adjust its policies based on lessons learned from more mature markets, such as those in European countries.
