A study surveyed in November 2022 by Similarweb reveals that traffic from sports betting sites in Brazil skyrocketed before the start of last year's World Cup in Qatar. With 113.9 million visits, Brazil is the second largest country in sports betting, second only to the United States, with 77.9 million.
During the Covid-19 pandemic, interest in gambling reasonably increased, as people felt more stressed and insecure about the world's economic instability and saw betting activity as entertainment and a way to make extra income.
With a strong growth of users in recent years and a large projection for 2023, there is a high expectation regarding the legalization of online gambling in Brazil.
Today, companies end up being harmed, running the risk of carrying out illegal operations because they do not have the regulations approved, inhibiting possible business partnerships with international operators who are afraid of the lack of rules.
However, law 13.756/18, which allows the activity in the country, was signed by President Michel Temer at the end of 2018 and provided for regulation in the next two years, extendable for two more. Former president Jair Bolsonaro had until the end of 2022 to approve sports betting in Brazil. Now the law is in the hands of the current government.
But after all, what is the importance of regulating gambling in Brazil?
The regulation comes strong in the mandate of President Luiz Inácio Lula da Silva (PT), started on January 1, 2023, with the intention of passing a rule on companies that operate (or not) correctly in the sector.
Among the positive points, legalization brings integrity and transparency in the sport itself - avoiding manipulation of bets and also in the results of games - generation of new jobs to Brazilians and heating the economy. As the law comes to define rules and standards, new companies in the sector must arrive here, aiming to operate legally.
Another very important point is the issue of ludopathy: an addictive behavior that consists of playing and betting successively and wildly. With regulation, it is easier to assist users by controlling their habits and imposing limits on the time of betting.
We still have another bill that is under way under Lula' s administration: no. 442/91, which deals with all the verticals of gambling, including casino and bingo.
I believe that the two regulations will be approved at once, opening doors not only for the online modality, but also for the houses of land-based games.
For this year, I see a very positive scenario for the sector in general, full of new opportunities and growth! Let's wait!
Leonardo Baptista
Pay4Fun CEO
