Brazil’s betting industry groups push for tighter enforcement, not a ban

Nine industry associations in Brazil have published a joint manifesto arguing that the answer to regulatory problems is stricter oversight, not shutting down the licensed market. For PSPs, acquirers, and banks, the message is straightforward: if legal operators are pushed out, volume does not disappear — it migrates to the illegal side, where payment controls are weaker and the state collects less.

1. The manifesto, titled “Nós apostamos no Brasil”, was released on Thursday (24/9) by nine entities representing sports betting and online gaming. It asks the Brazilian National Congress and the Executive Branch to avoid any measure that would prohibit or dismantle the regulated betting market in Brazil.
2. The signatories argue that the market has already been regulated by the state under Law No. 14.790/2023. On that basis, operators entered the country, paid licensing fees, hired staff, invested in technology and compliance, and started paying taxes under federal supervision.
3. The core warning is familiar, but the operational detail matters: if legal betting is banned, demand will not vanish, it will move to platforms outside the state’s reach. In that illegal market, the manifesto says, there would be no CPF verification, no blocking of beneficiaries of social programs, no self-exclusion tools, and no protection for problem gamblers. Minors, currently covered by regulatory safeguards, would be “completely exposed” if licensed operations were closed.
4. The groups also point to the fiscal and employment impact. A prohibition would end the tax transfers already set by law for areas such as sport, public security, health, and social security, while triggering mass layoffs and affecting suppliers and sectors linked to sport, technology, advertising, tourism, and payment methods.
5. There is also a broader legal-risk argument: revoking authorizations already granted by the state would create litigation, a “brutal” compensation liability, and a negative signal to investors across sectors. The manifesto’s line is blunt: “Regular is control. Prohibit is to lose control.”

The signatories say the real problems in the sector — excessive advertising and insufficient protection for vulnerable groups — call for stricter advertising rules, stronger safeguards, effective enforcement, and tougher action against illegal operators. The document was signed by ABC-Bet, ABFS (Associação Brasileira de Fantasy Sports), and ABRAJOGO, among others.