Betting law ignores technology and encourages clandestinity

[Forsyth Jones]

The new brazilian law that regulates online betting excludes the use of payments with cryptocurrencies, bank slips, cash or any alternative deposit payment method that could hinder the origin of resources and government fiscal control over the platforms and customers of the casino.

This could encourage clandestine betting on foreign platforms that accept crypto, outside the reach of national regulation.

The rules are exclusive to casino companies operating in Brazil. Therefore, casinos outside this territory will not be affected and Brazilian users who have accounts in these casinos abroad can continue using these platforms, as regulations cannot stop them.

Once again the brazilian government is going against innovation and proving to be stupid.

For more details, access the full article here.

[alani123]

Most countries don't bother to regulate crypto casinos at all. They just ban them outright by blocking then. But it is very easy to circumvent these blocks and eventually most people that were going to avoid the blocks do it anyway. And it's impossible to give consequences to hundreds of thousands of people for something as trivial. At least it would be very tyrannical to try.

But I am sure Brazil has better issues to focus resources on. So I am not surprised. Most countries treat gambling the same. And interestingly the crowd of people that don't even know how to change DNS also are the majority so this regulation works.

[teamsherry]

You have to also understand that lots of fraud go through casino and its not a wrong idea for them to regulate it a little, I believe they must be a reason behind this new rule that they brought out l, it can't totally be to stop crypto casinos from excelling in the country, who knows it might be task related.

[KTChampions]

The new brazilian law that regulates online betting excludes the use of payments with cryptocurrencies, bank slips, cash or any alternative deposit payment method that could hinder the origin of resources and government fiscal control over the platforms and customers of the casino.

This could encourage clandestine betting on foreign platforms that accept crypto, outside the reach of national regulation.

The rules are exclusive to casino companies operating in Brazil. Therefore, casinos outside this territory will not be affected and Brazilian users who have accounts in these casinos abroad can continue using these platforms, as regulations cannot stop them.

Once again the brazilian government is going against innovation and proving to be stupid.

For more details, access the full article here.

Instead of adapting to reality, officials are trying to draw water with a sieve. Nothing new. It is strange that local casinos were unable to lobby for a softer version of the law, since it is obvious that a significant part of the audience will go to foreign/crypto casinos and local businesses will be left without profit, which in turn will be the reason that they will not be able to provide clients with more favorable conditions. And this will lead to additional customer churn and so on. Officials are cancer, they make everything worse.

[Forsyth Jones]

It seems that the more you poke around in shit, the more it attract flies, look how absurd, seriously the brazilian government has been going overboard for a long time.

Researching further, I find this other news giving this deadline for casino companies:

Sports betting and online gambling companies will have until the end of the year to regularize themselves. They must pay R$30 million to the Union to obtain authorization for commercial exploration and not remain in an illegal situation from January 1st.

You have to also understand that lots of fraud go through casino and its not a wrong idea for them to regulate it a little, I believe they must be a reason behind this new rule that they brought out l, it can't totally be to stop crypto casinos from excelling in the country, who knows it might be task related.

The government's only concern is to parasitize society, it uses these arguments to justify its theft. Believe me, everything the brazilian government sets out to do, it doesn't do or if it does, it's done poorly.

Now laws to complicate the lives of citizens or even to tax to obtain increasingly exponential gains, in this they are extremely efficient.

Instead of adapting to reality, officials are trying to draw water with a sieve. Nothing new. It is strange that local casinos were unable to lobby for a softer version of the law, since it is obvious that a significant part of the audience will go to foreign/crypto casinos and local businesses will be left without profit, which in turn will be the reason that they will not be able to provide clients with more favorable conditions. And this will lead to additional customer churn and so on. Officials are cancer, they make everything worse.

You have a point!

[Kemarit]

You have to also understand that lots of fraud go through casino and its not a wrong idea for them to regulate it a little, I believe they must be a reason behind this new rule that they brought out l, it can't totally be to stop crypto casinos from excelling in the country, who knows it might be task related.

Yes, we understand that, and maybe that's what the government of Brazil doesn't want, but we all know that crypto based casinos are asking KYC (Know Your Customer), personal information like drivers license and passport so that they will know who they dealing with and prevent such cases as money laundering.

So it doesn't make sense for the Brazilian government to make a total ban on cryptocurrencies.

This is the new technology and we all know that if you look at the other way, there could be advantage of it like blockchain that they can implement as we all know that everything is recorded and immutable. So why not the government take advantage of it instead of going backwards?

[Forsyth Jones]

Yes, we understand that, and maybe that's what the government of Brazil doesn't want, but we all know that crypto based casinos are asking KYC (Know Your Customer), personal information like drivers license and passport so that they will know who they dealing with and prevent such cases as money laundering.

So it doesn't make sense for the Brazilian government to make a total ban on cryptocurrencies.

This is the new technology and we all know that if you look at the other way, there could be advantage of it like blockchain that they can implement as we all know that everything is recorded and immutable. So why not the government take advantage of it instead of going backwards?

'cause the government does not want competition, it wants to sell its own solutions (or imposes on force through threats of sanctions) so that it has more control over the financial lives of the parties involved in any negotiation.

The government here barely knows how blockchain technology works and is not interested in knowing unless it gives them an advantage in making it easier to track people's records and documentation.

[SamReomo]

As far as that law applies to casinos that operate in Brazil then online players should not worry about such laws. If I'm not wrong then most of the online casinos are operating from placed that's not under the territory of  Brazil and by keeping that in mine the online players can play at their favorite betting sites without any issues.

[Mia Chloe]

Most countries don't bother to regulate crypto casinos at all. They just ban them outright by blocking then. But it is very easy to circumvent these blocks and eventually most people that were going to avoid the blocks do it anyway. And it's impossible to give consequences to hundreds of thousands of people for something as trivial. At least it would be very tyrannical to try.

But I am sure Brazil has better issues to focus resources on. So I am not surprised. Most countries treat gambling the same. And interestingly the crowd of people that don't even know how to change DNS also are the majority so this regulation works.

That's just the internet for you. People will always find a way to bypass certain government restrictions and if it's just a casino ban they can probably tweak their IP via some VPN.
Without trying to be rude , I still don't see why some countries place ban on crypto related stuff like I don't really feel like it's necessary. Of course they may have their reasons but crypto currencies are undoubtedly the future of cash system and placing these bans only slow down the whole process.
With respect to the illegal issues, any cash system can be used for fraud weather directly or indirectly. Before crypto became popular, people still defrauded via fiat and other means.

[nelson4lov]

Well, If Brazil regulators have chosen to go backwards towards to the stone age, then by all means, we should let them. In the world today where crypto payments are the new norm even for country-centric casinos, they're taking the backwards path. I don't think this is not going to take a lot of time before they make a U-turn when many of their citizens evade the rules and play at crypto casinos. This is as expected because crypto is being preferred to national currencies now and governments are just doing their bids to stop it.

It's similar to how the centra bank of my country is edging towards the narrative that crypto is net negative because most citizens no longer care about the National currency and I do think it's win.

[AmoreJaz]

Well, If Brazil regulators have chosen to go backwards towards to the stone age, then by all means, we should let them. In the world today where crypto payments are the new norm even for country-centric casinos, they're taking the backwards path. I don't think this is not going to take a lot of time before they make a U-turn when many of their citizens evade the rules and play at crypto casinos. This is as expected because crypto is being preferred to national currencies now and governments are just doing their bids to stop it.

It's similar to how the centra bank of my country is edging towards the narrative that crypto is net negative because most citizens no longer care about the National currency and I do think it's win.

I highly believe that sooner or later, their government will change stance on this matter. Once they uncovered that their people found a way how to deal with online casinos using their crypto and other means, they probably launch new protocols on this area. Would be hard to ignore technological developments because we are living into this digital age era.

[seoincorporation]

The rules are exclusive to casino companies operating in Brazil. Therefore, casinos outside this territory will not be affected and Brazilian users who have accounts in these casinos abroad can continue using these platforms, as regulations cannot stop them.

With those regulations Brazilian users will get on a blacklist, in the same way as we see countries banned like Russia, Corea, or even USA.

But i agree with OP, this is totally retrograde move from the Brazilian gov, is fun how they are creating new laws and ignoring the technology, that's a dumb move because at some point they will have to create new laws and rules for online gambling with cryptos.

[PX-Z]

Most countries don't bother to regulate crypto casinos at all.

Probably all countries. As crypto casinis still fall on the countries' casino regulations/laws. That's why we see casino casinos accepting different kind of deposit/withdrawal method, those who are crypto only casino are unique and sometimes doesn't have any license/unregulated.

The decision of Brazilian government is something a controlling government will do, well, since this is their first online gambling law from being banned for how many years, it could be a first step for them but probably won't be the last as someone will revised it for sure.

[danherbias07]

You have to also understand that lots of fraud go through casino and its not a wrong idea for them to regulate it a little, I believe they must be a reason behind this new rule that they brought out l, it can't totally be to stop crypto casinos from excelling in the country, who knows it might be task related.

That's what I am also thinking. Is it being stupid or there's a deeper reason why Brazil is trying to regulate gambling?

I didn't see anything after pressing the link OP has provided so I have to look at it myself. I am not sure though if this is what OP is talking about.
https://next.io/news/brazil-issues-online-gambling-technical-regulations/
Brazil has issued new technical regulations and requirements for gambling operators looking to launch in its upcoming regulated market.

The Brazilian Ministry of Finance’s Prizes and Bets Secretariat (SPA) published Ordinance SPA/MF No. 722 in the country’s official gazette yesterday (6 May).
The ordinance details technical and security requirements for betting systems and online gambling platforms ahead of the legal market’s launch.

The ministry highlighted that all prospective online gaming operators will need to follow the new rules as a condition of their licence.

Included in the regulations is a requirement for operators to maintain their betting systems and data centres within Brazilian territory.

I think they are just trying to tighten things up in the gambling sector and maybe they just don't want anyone getting away from the legality of their business.
There's a lot of money in the gambling industry and maybe they are focusing on taking advantage of all that tax money so that they can improve more.
It is said that they also increased the tax percentage but I doubt that will hurt a gambling platform because of how big the industry is now.

[ethereumhunter]

Those people will not playing gambling on casino companies operating in Brazil. They will prefer to search for the other casino that is out of Brazil jurisdiction because they don't wants to gets a problem. They can use many ways to playing gambling on other platforms, including they can use VPN to visit on the casino out of their country.

They may use crypto to change their fiat to place a bet or playing gambling. People who often playing gambling on online casino will search for other ways to keeps playing gambling and they will gambling by secretly so their government can't track their gambling activity.

[Assface16678]

Those people will not playing gambling on casino companies operating in Brazil. They will prefer to search for the other casino that is out of Brazil jurisdiction because they don't wants to gets a problem. They can use many ways to playing gambling on other platforms, including they can use VPN to visit on the casino out of their country.

They may use crypto to change their fiat to place a bet or playing gambling. People who often playing gambling on online casino will search for other ways to keeps playing gambling and they will gambling by secretly so their government can't track their gambling activity.

Well, it's true that if there's a will, there's a way. As long as people who want to gamble want to gamble, they will find other ways to do so; they could even go against the government, and for sure they can't be stopped. And you are right, there are many ways to access different casino sites outside of the country you are in, and one of the examples is the usage of VPN. But of course, do mind that before doing that, you need to know if the casino site you will access accepts the usage of VPN because there might be a problem if you encounter a casino site that prohibits that, and for sure your account will be locked or banned right away. So make sure to know the rules and regulations of a certain casino site first before getting into it, because some sites may even implement a strict rule about foreign rules.

[retreat]

But isn't that to protect national economic interests? because a country has the right to protect their interests and prohibit anything other than their currency from being used in various industries, and especially in the gambling industry, so there is nothing too problematic about their decision. Moreover, such regulations do not really affect online casinos, since they only limit casinos operating in their territory, while the majority of casinos are based in Curaçao or other countries outside Brazil and Brazilians are still free to use online casinos that support crypto.

[satscraper]

Most countries don't bother to regulate crypto casinos at all. They just ban them outright by blocking then. But it is very easy to circumvent these blocks and eventually most people that were going to avoid the blocks do it anyway. And it's impossible to give consequences to hundreds of thousands of people for something as trivial. At least it would be very tyrannical to try.

But I am sure Brazil has better issues to focus resources on. So I am not surprised. Most countries treat gambling the same. And interestingly the crowd of people that don't even know how to change DNS also are the majority so this regulation works.

In any country casinos, no matter physical or online ones, operate under state approval and endowed with some rights commonly limited ones. Those rights are always depend on politics, economics, gambling  social impact, etc.. relevant to specific country.  I found interesting material that analyzes "global spectrum of gambling regulation".. It seems that Brazil has beaten both Singapore and Norway in this respect.  

[Don Pedro Dinero]

For a change, a law that looks more like a botched job made by politicians who do not understand what they are regulating. We know enough about that in Europe. I bet they will come up with another regulation in a few years, when they realise how much they are missing with users playing on cryptocurrency platforms.

You can't put doors on an open field.

[Oshosondy]

The rules are exclusive to casino companies operating in Brazil. Therefore, casinos outside this territory will not be affected and Brazilian users who have accounts in these casinos abroad can continue using these platforms, as regulations cannot stop them.

I am not that concerned because Brazilians that are using bitcoin or any other cryptocurrencies for gambling can easily make use of foreign gambling sites to gamble. There are many trustworthy foreign gambling sites that make use of crypto for payment. I noticed in my country that local gambling sites are very transparent in a way that can not let us have privacy and they are not supporting cryptocurrencies.