Resistance from Business Sectors
In a move aimed at curbing the potential harms associated with gambling, the Senate has approved new advertising restrictions, including a watershed similar to Senator Costa's proposal. This decision comes as PL 3,754/2025, which contains these measures, awaits dispatch. If enacted, the bill's provisions would take effect 90 days after publication, highlighting a growing divide between policymakers and the industry on regulation.
Senator Costa views the gambling sector as a response to a social epidemic affecting the most vulnerable, arguing that regulated betting generates social costs greater than its tax benefits. His proposal for stricter regulations is seen as a response to this perceived issue.
However, operators and trade groups warn that escalating restrictions could drive players to the black market. They fear that the increased restrictions could potentially undermine the regulated market, which was recently established, and unintentionally drive players towards unregulated activities.
Finance Minister Fernando Haddad has expressed support for a full ban on gambling if it reaches the Chamber of Deputies. This stance adds another layer of uncertainty to the future of the gambling sector in Brazil.
In an effort to ensure the sustainability of operators, Fernando Vieira, executive director of the Brazilian Institute of Responsible Gaming, emphasises the importance of increasing "channelisation". This term refers to the process of directing gambling activities towards regulated channels to prevent them from occurring in the black market.
The government has also temporarily increased the tax rate on operators' gross gaming revenue from 12% to 18%. This move is aimed at generating more revenue while the regulations are under review.
Despite the lack of specific names, some organizations and operators in Brazil warn that increasing restrictions might unintentionally drive players to the black market. They argue that a balanced approach is necessary to protect the most vulnerable while maintaining a sustainable and regulated gambling sector.
