Brazil regulates sports betting and casinos with a different approach than Colombia

Contributing 2.8% to Colombia's GDP, the casino and sports betting industry plays an important role, although relatively minor compared to key sectors such as export raw materials and financial services. Since 2020, its relevance has been increasing, evidencing notable growth in the digital field.

The transformation in the regulatory scenario of online betting and casino, especially in Brazil, shows its adaptation to digital and its strategic evolution, positioning Latin America and Brazil as a key market and one of the largest in digital entertainment. global level.

Brazil joins the race by regulating online betting and casinos
With the recent legislation promoted by President Lula, Brazil marks a milestone in the modernization and regulation of sports betting and online casino games, promising not only to revolutionize both sectors, but also to boost the national economy with an expected increase in federal revenues. of nearly $10 billion (currently equivalent to approximately 7,953.8 billion Colombian pesos).

This new regulatory framework imposes a 15% tax on bettors' profits and 12% on company income, in addition to a license fee of $30 million (about 23,861.4 million Colombian pesos) for those who wish to operate within the framework of the law.

The ban on casinos in Brazil in 1946, established during the government of Eurico Gaspar Dutra, was based on moral and social considerations, marking a long period of restrictions on gaming. The current legislation, which promotes the regulation of sports betting and online casino games, represents a significant change in the country's policy towards these sectors.

The process of passing this bill faced several challenges, particularly the inclusion of online casinos along with sports betting. Industry operators noted that it is common for platforms to offer both sports betting and casino games, including blackjack, slots and roulette, on the same websites.

They warned that legislation that specifically excluded online casinos could encourage the creation of an illegal market. This, according to operators, would further complicate the effective regulation and supervision of online gambling, encouraging activities outside the legal scope and potentially reducing the effectiveness of consumer protection measures and revenue generation for the State.

In addition, the project generated intense debate due to opposition from evangelical politicians, who argued that the expansion of gambling could lead to social problems, such as gambling addiction. Despite these challenges, the passage of the bill underscores the country's interest in creating a strong regulatory framework that not only generates significant revenue but also offers adequate protections for consumers. The inclusion of specific taxes and high license fees aims to ensure that only serious and regulatory-committed operators can participate in the market, thus promoting a responsible gaming environment.

Colombia, pioneer in the regulation of online betting
Colombia stands out as a pioneer in the regulation of online betting and casino games in Latin America. The creation of Coljuegos in 2011 and the promulgation of Agreement 04 of 2016 are milestones that established a solid legal framework not only for sports betting, but also for other online games.

This legislation established clear guidelines and strict requirements for operators, including accounts in entities supervised by the Financial Superintendence of Colombia and transfers of 15% of gross income, less prizes, as exploitation rights.

This regulatory scheme has been a comprehensive strategy to legalize, control and promote a growing industry, while combating illegal gambling and promoting an important source of income for the State.

Coljuegos has stood out in its fight against illegal gambling, carrying out operations that have closed and seized illegal establishments. This demonstrates their commitment and effectiveness in regulating and supervising the betting industry in Colombia.

In an operation in Cali in 2021, for example, 59 illegal slot machines were confiscated in 11 establishments. The Police, with Coljuegos, focused these locations in the Sucre and Decepaz neighborhoods, as part of the efforts to combat illegal activities.

Although the figures of these interventions are confidential, Coljuegos' role is fundamental to guarantee compliance with regulations and promote a safe and fair gaming environment. Colombia's strategy, framed in regulation and the fight against illegality, stands out not only for its direct impact on the online gaming industry, but also for its contribution to the social and economic well-being of the country.

Brazil and Colombia: a shared path towards regulation
The online betting and casino sector in Latin America faces a crucial moment. Colombia, through Coljuegos, implements a strategic approach with licenses and a 15% fee on gross revenues. The regulatory entity focuses on combating illegal gambling to promote a regulated and safe market.

In 2022, online betting in Colombia grew significantly, with more than 8 million active accounts and bets worth $26 billion. The country led Latin America in transactions through PayU, with more than 18 million, driven mainly by the impact of the Soccer World Cup.

Brazil is going through a transition phase with new legislation on sports betting and online casino gaming, with an approach that, although not directly based on Colombia's experience, could be seen as a useful reference, especially in areas such as protection to the consumer and the generation of public income.

Unlike Colombia, where land-based casinos are regulated, Brazil has not yet taken that step. However, a project approved by the Chamber of Deputies could allow the opening of physical casinos in leisure complexes, marking a potential evolution in its gambling policy.

In this context, both countries share the challenge of ensuring compliance with regulations and combating illegal gambling, highlighting the importance of effective regulation that balances economic growth, consumer protection and the integrity of the online betting market.

This interaction between the experiences of Colombia and Brazil reflects an evolving scenario, where mutual learning and adaptation to local realities can pave the way towards a safer, regulated and prosperous online gambling and casino sector in Latin America.