The agency, linked to the UN (United Nations), states that the measures adopted by the country to date focus on taxing these activities, while international experience shows the need for a multidimensional approach, with rules to protect the health of bettors, their personal finances and prevent the worsening of inequalities.
The UNDP suggests inspiration from successful international models, such as the United Kingdom, and warns against the lack of regulation or prohibition, which tend to increase illegal markets and vulnerabilities.
The UN agency states that betting needs to be regulated beyond the tax issue and sees an increase in inequality and that Brazil needs to speed up the regulation of sports betting in aspects that go beyond taxation.
The issue is relevant because the global online betting market is expected to generate between US$80 billion and US$110 billion this year. Its rapid expansion has worried experts due to the possible negative effects on the population, especially the most vulnerable — who tend to reduce the consumption of essential goods and services in order to bet under the false illusion of financial returns.
According to the UNDP, regulation is essential to mitigate these impacts. "Economic development, even with the prospect of increased revenue, tends to be negatively impacted if additional measures are not taken," it warns.
To address these challenges, the document proposes that Brazil should adopt broader regulation of the sector, which includes data collection and disclosure, health protection measures and responsible advertising policies.
The Ministry of Finance has published a set of ordinances to regulate the activity. The measures include a ban on the use of credit cards on platforms and restrictions on advertising, but there are still doubts about the need for adjustments. The ministry is still discussing with the Ministry of Health actions to assist people with health problems associated with gambling.
The UNDP recommendations are based on evidence already observed in other countries that have established rules not only economic, but also on public health, advertising and transparency. Guidelines adopted to regulate the tobacco and alcohol industries are indicated as possible references.
"It is important to start collecting data and analyzing risk factors, precisely to inform preventive policies and to try to regulate. Regulating does not mean promoting, it means providing transparency and providing measures that allow for control and avoidance of what is called the 'hot air balloon effect': you press on one side and the air goes to the other," says the UNDP representative in Brazil, Claudio Providas.
The report points to the regulation adopted by the United Kingdom as a successful model. There, the sports betting market moves around US$ 18 billion, and the business is regulated by a commission called the Gambling Commission.
Gaming operators have their profits taxed at 15%, rising to 21% in the case of online gambling - there is even a discussion to increase the charge to up to 42%. Last year, the government collected around US$ 4 billion from the activity, of which US$ 1.2 billion came from online platforms.
To protect users, measures have been adopted such as a ban on the use of credit cards, a minimum age requirement to protect younger users, limits on advertising (including on social networks), licensing of platforms and the creation of a voluntary mechanism that allows players to self-ban online gambling for six months or more.
The United Kingdom has also created a group of gambling experts to study the impacts and opportunities related to gaming security and technological advancement.
"The United Kingdom model is considered a success story for having managed to effectively increase transparency in the sector and fair play, with oversight for fair practices, integration of the sector from the perspective of formality and revenue collection, increased social awareness of the negative impacts of gambling and relevant restrictions on aggressive marketing aimed at vulnerable groups", says the UNDP.
Other countries in the European Union are also making progress in regulating betting. In Italy, advertising for gambling has been banned since 2019.
Together with other measures, the rules have led to increased control over companies and revenue collection.
However, progress in regulating these activities is not uniform, and successful cases are far from being the rule. "Several countries have a more limited regulatory policy, or even no regulatory policy for the sector at all," says the UNDP text.
According to the agency, in countries where the market is poorly or unregulated, there is a proliferation of illegal operators, which makes users more vulnerable and burdens the public sector, which not only loses revenue but also has to deal with the negative consequences of gambling.
On the other hand, prohibition does not seem to be the way forward either. The document cites the case of South Korea, which has some of the most restrictive regulations in Asia and yet is witnessing the growth of the illegal online gambling market.
"I have not seen any country that has banned gambling successfully. If you prohibit it, you do not have more sophisticated mechanisms to monitor or control what is growing," says Providas. Easy access to illegal platforms also exposes the population to problems such as addiction and debt accumulation.
Source: Folha
