The regulation of gambling in Brazil, scheduled to come into force in 2025, represents an important milestone in the way this activity is perceived and managed in the country. Amidst a scenario of growing popularity of online gambling, it is essential to discuss the positive aspects of this regulation, which not only legitimizes gambling as a form of entertainment, but also brings significant benefits to the economy and society.
Negative news attempts to tarnish the hard work of the serious industry
Recently, some news outlets have insisted on demonizing the gambling sector, focusing on negative aspects and increasing fear regarding this activity. While it is important to discuss the risks, this approach often ignores the benefits that regulation can bring. The narrative that gambling is exclusively harmful fails to consider the entertainment potential and economic opportunities that the sector can offer.
For example, regulation can help combat the illegal gambling market, which thrives without adequate oversight. With the legislation in place, authorities will be able to better monitor and control the activities of bookmakers, ensuring that they operate in accordance with the law and provide a safer and more transparent environment for bettors.
In addition, promoting education about responsible gambling can reduce stigma and help bettors understand that this activity should be viewed as a form of leisure, rather than a guaranteed source of income.
The economic and social impacts of regulation speak for themselves
The forecast that the regulation of betting in Brazil could generate revenues of between R$2 billion and R$10 billion in 2025 is based on analyses by economists and industry experts. According to an article in Estadão, this estimate takes into account the growth of the online betting market in the country and the consolidation of this practice in the consumer behavior of Brazilians.
The regulation, which will come into effect in 2025, includes a 12% tax on the revenue of betting platforms, in addition to additional taxes on bettors' winnings.
In addition, the payment of concession fees by companies that obtain licensing is expected to generate around R$3 billion in 2024, contributing to the total revenue. Therefore, the combination of these factors justifies the forecast of significant revenues from the regulation of betting in Brazil.
There are plenty of successful examples in the international market
The experience of the United States after the legalization of betting shows that initial deposits increased by up to eight times in the 12 quarters following legalization. This information was confirmed by a report by XP, which highlights that the volume of bets and the number of active users grew substantially after regulation.
In addition to the USA, the United Kingdom and Colombia are also cited as examples of markets that prospered after regulation. The opening of these markets led to the entry of new users and the reinvestment of earnings in the platforms, which, in turn, benefited the local economy.
All of this demonstrates the importance of regulation in transforming betting into a beneficial economic activity, while ensuring consumer protection and promoting a responsible gaming environment.
André Vinícius de Alencar Alves
Partner at Control F5
