The 5 main benefits for the country:
- Collection of taxes and fees to be converted to society: ANJL estimates that in 2025, legalized betting houses will allow the public coffers to collect more than R$20 billion (US$ 3.35bn) in taxes and fees, including the grants for the federal license. 'Bets' (as the operators are called in Brazil) will have to pay the Federal Government 12% of Gross Gaming Revenue (GGR) to operate in Brazil. This fee, added to the traditional taxes paid by service companies, will result in a tax burden of around 36%.
- Job creation: Contrary to what those who oppose the market say, there will indeed be job creation in the country with the installation of legalized operators. The association estimates that at least 60 thousand jobs will be created, both direct and indirect. This is because 'Bets' activities impact a chain of products and services, in sectors such as entertainment, advertising, information technology, law, compliance and media.
- Transparent and honest market: As of January 1st, only companies with the domain “bet.br” will operate legally in Brazil. This way, bettors will finally know immediately whether they are having fun on a serious, regulated website that respects their rights, or whether they are on an illegal platform that will pose serious financial and health risks.
- Safety for bettors and protection for minors: Unfortunately, without regulation, the country was flooded with illegal betting shops that did not honor payments to bettors and allowed access to children and adolescents.
Under regulation, bettors will have the assurance that they will not be victims of scams, as the entire operation will be permanently monitored by the regulatory authority. In addition, children and adolescents will not be able to access the sites, as they will be prevented through the implementation of tools, including facial recognition.
- Benefits to mental and financial health: Only the regulated market is concerned with the mental and financial health of bettors. As provided for in Law 14.790/2023, part of the resources paid by 'bets' will be allocated to the Ministry of Health, to promote public policies to prevent and combat gambling addiction.
In addition, the legislation provides for strict mechanisms for the exclusion, by legalized 'bets', of bettors who are developing compulsive behavior. In addition to these measures, there are voluntary initiatives by ANJL and several betting houses offering psychological support programs.
The 5 main challenges for the country:
- Effective blocking of illegal websites: As recognized by Anatel itself, Brazil still does not have mechanisms for effectively blocking illegal platforms, which seriously jeopardizes the effectiveness of the regulated market. ANJL believes that a task force involving several regulatory agencies will be necessary to combat these websites, so that bettors do not access them and are exposed to the various inherent risks.
- Excessive taxation: Still under discussion in the National Congress, the Selective Tax, provided for in the current Tax Reform project, has the potential to drive operators away even after the start of regulation. International experience shows that high tax burdens generate low channeling of bettors to the legal market. In other words, the result of this is the expansion of clandestine platforms, which do not pay taxes and promise greater profits. All outside the law.
- Prohibition of responsible advertising: Initiatives in the National Congress are still trying to completely prohibit advertising by betting houses. In this case, too, examples from other countries that have implemented such a measure show that the main consequence is the encouragement of the use of illegal platforms. Responsible advertising is what differentiates serious, legalized betting houses from those that are not. Without it, bettors are even more exposed to actions that are harmful to their health and their pockets.
- Match-fixing: If illegal operators are not effectively blocked, Brazil will continue to be exposed to cases of match-fixing in sporting events, in which only criminal groups and co-opted athletes profit. Only legalized betting houses are committed to the fight against match-fixing, including through partnerships with international sports monitoring and integrity entities.
- Raising awareness among the population: Betting is not an investment or a source of extra income. This is the main message that Brazil needs to continue to convey to the population. This will only be possible through the engagement of the industry itself and the government, in order to discourage any behavior by bettors that deviates from the norm, that is, the act of betting consciously, moderately and only as a form of entertainment.
Launched in March 2023, the National Association of Games and Lotteries (ANJL) defends the interests of its members, the sector and responsible and honest gaming, always guided by the promotion of sports, the safety of bets and the contribution to the country's economic development.
Partners include galera.bet/Playtech, Big Brazil, F12, PagBet, Betnacional, Mr. Jack, Parimatch, BetFast, Aposta Ganha, Liderança Capitalização, Z.ro Bank, Propane, Paag, Clear Sale, BetBox tv, StarsPay, 1xBet, PG Soft, Jogalimpo, Oddfair and Responsa.
Source: GMB
