Experts explain the overwhelming arrival of bookmakers in Brazil, the legal issues and the risks involved in this controversial practice
The betting market has arrived with everything here in Brazil. And it doesn’t take much effort to prove this: present on the advertising boards of football tournaments, in the ads on social networks (right, YouTube?) or in the app stores for mobile devices, online casino companies and sports pitches show up and prove the achievement of a relevant level in the national territory.
To be fair, gambling is not something relatively new around here. The animal game, for example, was created in mid-1982. There were also times — brief periods in the 10’s, 30’s and 40’s — when casinos could operate freely on Tupiniquim soil. The Federal Lottery, in turn, is still more alive than ever and will be exactly 60 years old in 2022.
But despite this practice being rooted in the history of Brazil, it is perhaps inevitable to observe that the betting market – specifically speaking of online services – in the country has never looked as strong as the scenario seen in recent years.
And to better understand the recent boom, legal issues, industry backstage and risks behind the practice, TecMasters delved into this controversial segment to talk to market experts in the bet to demystify this rising sector.
Betting market is one of the market bets
Before understanding the reason for the recent rise, it is necessary to note that the gambling market has been growing for some time. Since 2009, the segment has presented advances year after year around the world, which reveals a massive interest from players.
And the numbers don’t lie: according to a survey by Statista, the global market for the segment more than doubled in 10 years, from a market value of US$ 20.51 billion in 2009 to US$ 55.10 billion in 2019. In 2020, the segment was already approaching US$ 59.79 billion.
The curious thing is that this ascent should not stop there. The segment observed a “boom” mainly from 2020, the year in which the planet was affected by an unprecedented health crisis. And since then, while several areas have fallen, the betting industry has only increased.
From 2020 to 2021, the growth in market value was 26%. But according to Polaris Market Research Analysis, the prediction is that the gambling market will continue to grow over the next eight years, with the expectation of reaching a revenue of US$ 205.60 billion in 2030.
Of course, the data encompass the entire global scenario, but in Brazil, the situation has not been different.
Brazilian interest also high
If the scenario is high abroad, it’s no different around here. But in Brazil, the most popular betting segment encompasses the sports sector – which is slightly different from online casinos or popular games of chance in that it requires a study of the chosen sport in addition to the luck factor.
Speaking of numbers, Keyword Planner, Google’s search tool, found that about 35,700 searches on the topic are carried out monthly by the Brazilian public. This makes the Tupiniquim interest in the sports betting market the largest in South America, well ahead of other peoples such as Colombia, Peru and Argentina.
Another survey carried out by Globo organizations points out that the search for the terms “bet”, “bet” or “bet+aposta” has grown fervently since 2020. sports, which also grew in the same period. It’s that story: only those who are seen are remembered.
But calm down: is this legal here in Brazil?
“But aren’t these practices prohibited in Brazil?”, some may be asking. After all, much is said about the growth of the market, but little is said about legal issues here. In this sense, the practice still raises several doubts.
Many are based on Decree Law nº 9.215, which banned gambling in the country in 1946. It turns out that the decree did not take into account the arrival of online services — not least because there was no internet at that time — and, with the contemporary changes, some points were recently reviewed.
In December 2018, then-President Michel Temer passed Law 13,756/2018, which allowed fixed-odds betting — practices in which the winning conditions and the multiplication factor of your bet that will result in the prize are predefined. Sports betting is in this basket and is even the only modalities allowed here in Brazil, according to Marcelo Mattoso Ferreira , partner at Barcellos e Tucunduva Advogados and active in the Games and Esports market.
“The concept of gambling, defined in article 50, §3 of the Criminal Misdemeanors Law, may end up encompassing numerous activities that involve “luck/randomness” and the binomial “win/loss”. The only modality currently allowed in Brazil is fixed-odds sports betting” , highlighted the lawyer.
The proposal to regulate online betting is stalled in the Senate and needs to be voted on by December 12 this year. In the meantime, companies in the sector take advantage of this to offer their services in Brazil, as they are headquartered and operated abroad.
And with this lack of regulation, the actions of these houses happen without charging taxes or fees — and perhaps that explains, in part, the emergence of so many companies in the segment in recent years.
In short, these modalities are not considered illegal. But who loses is Brazil, which stops profiting from taxes that could be reversed in several areas.
Full source: Tecmasters