Zona de Azar Brasil – Brazil: Positive and Negative Impacts of Betting Regulation
Brazil.- June 13, 2024 www.zonadeazar.com The regulation of betting in Brazil, especially considering the recent approval of the regulatory framework for sports betting, has several significant impacts, both positive and negative.
The BetInfo Portal has separated the main ones so far so that our readers have a brief idea of what is to come and what has already been publicly defined by the responsible senators and deputies.
The text determines the payment of 2% Social Security Contribution on the proceeds of the collection. The resources will be divided between education (1.82%), sport (6.63%) and tourism (5%).
Companies, on the other hand, will be able to keep 88% of gross revenue for costs. The 12% will be divided between education, public security, sport and other areas.
Positive Impacts
Increased revenue
Regulation allows the government to collect taxes on betting, generating a new source of revenue. These values can be used to finance public projects, such as health, education, infrastructure and other areas, leaving the values defined by percentage for each department as described in the text above.
Generation of new jobs
The legalization and regulation of betting creates new employment opportunities, both directly (in betting companies) and indirectly (in related sectors such as technology, marketing and services).
Development of the entertainment sector
The betting market can stimulate the growth of other entertainment sectors, such as sports and events, by taking people who practice betting to visit places where their predictions are taking place.
Consumer protection
The regulation establishes guidelines and standards to protect bettors, ensuring transparency and fairness in games. This includes implementing measures against fraud, manipulation of results and even ensuring correct payment security.
Combating illegal activity
Regulation can reduce the betting black market, bringing clandestine operations into legality, where they can be monitored and controlled.
Negative Impacts
Addiction risk
Ease of access to betting can lead to an increase in cases of addiction and gambling-related problems, such as financial difficulties, family problems and mental health.
Challenges for inspection
Creating an effective regulatory and oversight system can be complex and expensive. There is a risk of not being able to monitor all operations, especially in a growing digital market.
Personal financial impact
With the lack of financial education and the addictive nature that gambling can lead people to, we may experience excessive spending, debt and personal financial crises.
Free betting can also cause social inequality, as low-income people may be more vulnerable to the risks of gambling and more likely to spend a greater proportion of their income on betting, believing that they could change their reality.
Betting regulation in Brazil has the potential to bring significant economic benefits and improve consumer protection, but it also presents social risks and implementation challenges.
The success of regulation will depend on the government’s ability to balance these aspects, promoting a safe and sustainable betting environment.
Edit: @_fonta www.zonadeazar.com
