Brazilian government wants to ban online bets and restrict sports betting

[swogerino]

The Brazilian government is preparing a provisional measure to ban online gaming and restrict sports betting
It’s interesting that this comes not long after Brazil collected a lot of money from company licenses

In late 2024, the government began receiving the funds to issue the licenses, and the companies operated here legally,  each company had to pay 30 million reais for a 5-year license
It is estimated that the government received 12.2 billion reais (which is roughly $2.14 billion) plus 12% of the companies revenue

Look at the mess and the legal uncertainty in Brazil 

Furthermore, now that betting is legalized here, there’s still the issue of sponsorships. For example, it’s estimated that 1 billion reais has been invested in sponsorships in Brazilian soccer
The biggest clubs are sponsored by betting companies

There are advocates on both sides: some want a total ban, while others argue that with a ban, people will continue to gamble "illegally"

But the reality is that there is extreme uncertainty for those who invest in Brazil, and that the government can change its mind at any moment and simply overhaul all the rules overnight

What do you think guys?

If this happened in continuity in Brazil then the casinos or operators who have invested heavily there means that they didn't do their own research regarding the climate of investing in Brazil especially in volatile economies like the Brazilian one. Now all people, I mean all the sport teams not only in Brazil but in any soccer Championship in different parts of the world are heavily sponsored by these guys, the casinos or their owners, you will find a typical " bet something" in the sponsor name in the shirts of the players and as I said this is going on in the whole world. I think next time when such operators want to invest in such volatile environments they should ask for penalties to be paid by the government if they change mind in a certain time frame, there is no other solution to this except this one.

[el che]

Here in Argentina, the approach is a bit different, though still a mess. Gambling is regulated at the provincial level rather than federally. In places like Buenos Aires operators pay heavy taxes and jump through regulatory hoops but at least the rules are established. It’s bureaucratic but you don't usually see the government pocketing licensing money one day and threatening to outlaw the industry the next.
Companies that paid $30M BRL for 5 year licenses in Brazil are going to drag the government through court for years if they pull the plug. Classic political hypocrisy.

[mikel_012]

I don't yet have a clear picture of the impact on Brazilian society as a whole; if gambling addiction and financial losses are a reality (rather than just a political pretext), how would that play into the hands of the right wing?

Lula which is the president of the left, was the one that allowed gambling casinos to grow so much in the country when he sanctioned the law that allowed them to pay a big fee and operate

But now he is saying he is the enemy of bets because poor people are losing money, but he allowed them in the first place

And it is bad to receive R$ 30 million from many casinos and now try to end them

If you want companies to invest in the country you can not betray them. If he did not want casinos he would not allow them for a big fee

[Moreno233]

I don't know if they can effectively enforce this because the highest they can do is to block the IP address of all gambling platforms and people will easily find their way around this by using VPN for casinos that allow that or simply use the mobile application of the casinos and there is nothing the government can do at that point. I don't just know if that casinos will begin to add Brazil in thejr list of restricted countries if this new policy is implemented. If that happens,  then it will become a real problem for Brazilians that gamble.

[uchegod-21]

Banning sports betting or completely is fine but if they try to break the sponsorship deals then the government will be affected because brand brings revenue to the government to be honest and if they make an issue for their invested money then they will make them pay in the other way.

From the OP, it's clear that they aren't banning sportbet due to the sponsorship deals they had with the government. They're only going to make sportbet stricter than before.

Will I say that Brazil government is doing what will affect them later because you cannot stop gamblers from gambling even if you ban gambling activities in the country. They should think twice on their decision on banning online gambling.

Any government that tries to stop its citizens who have already been exposed to gambling for a very long time from gambling is just fooling itself. In the end, a real gambler will always find a way to satisfy his gambling craving, but the government will lose revenue without solving the problem it thought it was solving. The Brazilian government is just one of such governments that is trying to make such a mistake.

They should rather aim towards regulating the gambling sector more strictly. This will keep every gambler on their toes and also help flush out bad casinos. Everyone stays safe in the end: the gamblers, the casinos, and the government.

[leonair]

Since the Brazilian government has already issued legal licenses for online gambling in 2024 and has collected a huge amount of revenue from it, now Brazilian citizens are very addicted to gambling because they have been gambling legally. A reputable Brazilian newspaper, Folha de S.Paulo, mentioned that about 12% of the total population of Brazil gambles on government-licensed online gambling platforms. Now if the government bans online gambling, then this huge number of gamblers will gamble on illegal gambling sites that are operated from some other country. In that case, their own money will go out of the country. This is also a big concern for Brazil, so instead of completely banning online gambling there, online gambling should be re-monitored so that people do not completely destroy gambling and people can gamble at a normal level.

[knowngunman]

But the reality is that there is extreme uncertainty for those who invest in Brazil, and that the government can change its mind at any moment and simply overhaul all the rules overnight

What do you think guys?

I don't get the message right. So after government charge the gambling platforms a huge amount of money to obtain license, wants to share part of their revenue with them but in less than three years, they're making a U-turn to ban online bet and restrict sports betting? I think they're joking if I really get the message right. From your post, the licence was supposed to last for at least five years. It's not a fair deal to cut people investment short after you had make them to pay a huge amount of money. It's more appropriate to let them operate freely to enjoy the fruit of their investment. If government is more concerned about changing their rules frequently, then they should consider charging the platform a little amount.

[goldkingcoiner]

The Brazilian government is preparing a provisional measure to ban online gaming and restrict sports betting
It’s interesting that this comes not long after Brazil collected a lot of money from company licenses

In late 2024, the government began receiving the funds to issue the licenses, and the companies operated here legally,  each company had to pay 30 million reais for a 5-year license
It is estimated that the government received 12.2 billion reais (which is roughly $2.14 billion) plus 12% of the companies revenue

Look at the mess and the legal uncertainty in Brazil 

Furthermore, now that betting is legalized here, there’s still the issue of sponsorships. For example, it’s estimated that 1 billion reais has been invested in sponsorships in Brazilian soccer
The biggest clubs are sponsored by betting companies

There are advocates on both sides: some want a total ban, while others argue that with a ban, people will continue to gamble "illegally"

But the reality is that there is extreme uncertainty for those who invest in Brazil, and that the government can change its mind at any moment and simply overhaul all the rules overnight

What do you think guys?

I really do not understand the proponents of gambling bans. Do they think that banning gambling actually gets rid of gambling or do they just want to rip down the regulatory infrastructure so their corrupt friends can keep their online gambling businesses without having to worry about looking over their shoulder for regulators?

Although I understand trying to reduce risk for certain people, like gambling addicts and children, but a ban has never actually solved the issue. It just made gambling more  secretive and scammy.

[mak013]

The Brazilian government is preparing a provisional measure to ban online gaming and restrict sports betting
It’s interesting that this comes not long after Brazil collected a lot of money from company licenses

In late 2024, the government began receiving the funds to issue the licenses, and the companies operated here legally,  each company had to pay 30 million reais for a 5-year license
It is estimated that the government received 12.2 billion reais (which is roughly $2.14 billion) plus 12% of the companies revenue

Look at the mess and the legal uncertainty in Brazil 

Furthermore, now that betting is legalized here, there’s still the issue of sponsorships. For example, it’s estimated that 1 billion reais has been invested in sponsorships in Brazilian soccer
The biggest clubs are sponsored by betting companies

There are advocates on both sides: some want a total ban, while others argue that with a ban, people will continue to gamble "illegally"

But the reality is that there is extreme uncertainty for those who invest in Brazil, and that the government can change its mind at any moment and simply overhaul all the rules overnight

What do you think guys?

It would be nice to get a bit more information.
Right now, I don't see a problem:
If the Brazilian government is making money from offline bookmakers, it seems logical that they'd try to shut down online casinos. In that case, I see no problem with investing in the offline gambling business.
If they ban companies that paid for a five-year license, that looks like cheating, and I think those companies will challenge the decision in court.

[Su-asa]

A country that people accept gambling already, the government should not deceive themselves by banning gambling in such country because the people in the country will continue to find ways to gamble.

Even in countries where their government doesn't legalize gambling or anything that involves betting, their citizens are actively gambling with a VPN, and most of them are also betting physically in secret places. Funny enough, don't be surprised that most of the authorities who restrict people from gambling are also gambling secretly with a VPN just to bypass the restrictions.

Since the Brazilian government has already issued legal licenses for online gambling in 2024 and has collected a huge amount of revenue from it, now Brazilian citizens are very addicted to gambling because they have been gambling legally.

At least the Brazilian government is literally doing those gambling addicts good by banning gambling, as they have known well that gambling is destroying their youth; that's why they banned it. Any addict who still finds a way to continue gambling is probably beyond help at this stage, and it only takes strict rules to save them

[Nwada001]

I was among those who somehow celebrated that the Brazil government has made a clear regulation concerning gambling and is charging for licensing. At least operators don’t have to operate illegally and move out the money they made from the country, but here we are now; the country is coming up with an unfair policy for those who just spent millions acquiring licenses from them to shut them down completely, I think their are better ways for them to come up with a solution to what ever made them change their mind than to take such harsh and unfair measures towards those legal gambling owners not to talk of the way they will directly push citizens into using offshore gambling.

[r_victory]

It is curious to want to do this right in the middle of election season. And what is even more curious is seeing the very person who implemented the regulations, driven by a desire to boost tax revenue, now trying to play the national hero. I don't know whether to call it hypocrisy or opportunism.

[Charles-Tim]

At least the Brazilian government is literally doing those gambling addicts good by banning gambling, as they have known well that gambling is destroying their youth; that's why they banned it. Any addict who still finds a way to continue gambling is probably beyond help at this stage, and it only takes strict rules to save them

Gambling is banned in main land China, but according to some sources but which are not that reliable, 2.5 to 4% of mainland Chinese are suffering from gambling addiction.

In the United States 3 to 4% of the population are addicted to gambling.

What will happen in countries that already know gambling? People will continue to gamble just like how it is today, but the government will be the one that will lose.

[Ayers]

It is estimated that the government received 12.2 billion reais (which is roughly $2.14 billion) plus 12% of the companies revenue

What do you think guys?

I could see R$12.2 billion figure does not represent government revenue. It is estimated revenue of licensed betting sector for first four month of this year. Tax collection during that period was approximately R$4.5 billion.

And that R$30 million refer to licensing fee for five-year authorization, which can cover up to three brand. So if you have three brands then you do not need to allocate 30M + 30M + 30M separately for each brand.

Anyway, honestly I cannot help but laugh at their timing. Over the past year, they have officially regulated the betting market, bringing operator under licensing and tax. But there is now talk of Provisional Measure to shut down online casino. It is truly absurd.

So there is major lesson to be learned here.
We must realize from now becoming legal and achieving regulatory certainty are not same thing.

[vs2014]

If gambling is common in Brazil and companies already paid large license fees and taxes to legalized their business, then suddenly such decision can create serious uncertainty for both businesses and investors. Even a complete ban may force gamblers to choice alternative way especially illegal platforms to fulfil their desire gambling. Thus people will play but government may have less control and maybe get deprived from tax mainly when its comes to Brazilian football sponsorships. I would appreciate Brazil govt if they don't ban gambling rather set advertising limits, strict age verification and responsible gambling rules to get the sector under control

[CryptoHeadlineNews]

There are advocates on both sides: some want a total ban, while others argue that with a ban, people will continue to gamble "illegally"

But the reality is that there is extreme uncertainty for those who invest in Brazil, and that the government can change its mind at any moment and simply overhaul all the rules overnight

What do you think guys?

I hope the Brazilian government don't come to a conclusion of totally banning gambling in Brazil, because that will be an indirect fraud from the government to the people who invested in having their gambling company properly registered through getting a 5year gambling license from the Brazilian government. Because totally banning gambling entirely in this era of technology will be a total waste of time, because will still continue gambling illegally, while the government will cease to start having the huge revenue from gambling operation.

[DPHOR]

I believe every government knows what they want from people and they also know what is good for her citizens and if they see that by permitting gambling site it would reduced addiction from their citizens then fine!
What next they should do is to consider how much they makes from gambling industries and also, in acquisition of license they should also consider the amount they are making before putting an end a gambling site or even stopping the whole operation of gambling sites on their country.

[Bitcoin.com97]

I wish they don't conclud on that ,I know for sure ,even if they baned online gambling many will still look for a way to gamble ,they will navigate it.

On the other hand Brazilian government maybe doing a good thing to those who are addicted to gambling, because it will definitely reduce the Addiction rate, addiction has destroyed so many persons life ,so I believe the country knows what is good for her citizens even tho they will navigate the process.

[M47AK16]

Sponsorship deal worth over 1 billion reais for Brazilian football club are now facing uncertainty. If govt ban these who will compensate the clubs for their financial loss?

Compensate the clubs for financial loss? What kind of sponsorship are you talking about? In a sponsorship deal, the company who sponsors a club or a team or anything, the company is the one who bears the finances, and the club will basically just promote that company through their shirts, putting their logos in everything they use or carry, because that is what they are getting paid for, the company wants to spread the word about itself through them, so it's not the club that is going to lose money in a sponsorship deal but it's the company that will, because I don't think their contracts allow them to get a refund in case the government turns against them all of a sudden.

Now, about the decision of the Brazilian government about online gaming or sports betting, it is obviously a bad move for the gambling companies that have bought their licenses from the government to legally run their businesses. I wonder if they can challenge the government in the court for this because this is clear injustice unless the government is ready to give those companies a refund if they are not going to allow them to run their business anymore because they have done everything legally and by law, they should be allowed to at least complete the period for which they bought their licenses.

[Johnlomape]

I don't know if they can effectively enforce this because the highest they can do is to block the IP address of all gambling platforms and people will easily find their way around this by using VPN for casinos that allow that or simply use the mobile application of the casinos and there is nothing the government can do at that point. I don't just know if that casinos will begin to add Brazil in thejr list of restricted countries if this new policy is implemented. If that happens,  then it will become a real problem for Brazilians that gamble.

I don't think this should be about avoiding getting caught through the use of VPN. Using VPN will not solve the problem especially for those companies and individuals that have spent a lot of money on gambling and sponsorship and now getting restricted from benefiting from their years of labour and endeavors. Banning sport betting in Brazil is going to create serious problem for people that see gambling as a mean of income, especially for those that are working in the casino and earning a living through daily gambling.
If the government ban gambling, that means most casino would have to restrict players from Brazil from using their casino to respect the local law of Brazil.