Brazil has already regulated sports betting. The legal framework is in place. More than 70 brands have each paid USD 5 million to operate legally. The requirements are public. The industry is organizing to play by the rules, and there are consequences for those who don’t.
The market has moved out of informality and now operates under clear standards of compliance, transparency, and social responsibility. Following the law is a crucial step. The real challenge now is earning the social license, the one that must be earned every single day.
Trust from society doesn’t come by decree. It’s not published in the Official Gazette. It’s built on public perception, on how the regulated industry is understood, on its ability to engage with society, to make the risks of the illegal market clear, and to show it’s here to be part of the solution. And that’s precisely where the challenge lies right now.
Historically, other industries have faced public discomfort. But few have had to justify their very existence just to be seen as legitimate. Perhaps that’s why the sector has once again been hit. The increase in the GGR tax from 12% to 18%, in a market that barely had time to catch its breath since regulation, wasn’t the first surprise and probably won’t be the last.
Even with regulatory progress, the sector still faces great resistance. For many, the very existence of betting is uncomfortable. But let’s not forget: betting is an age-old behavior, present in nearly every culture. Who hasn’t said “wanna bet?” at some point? That’s why it must be addressed with maturity, not taboo. Without a clear, coordinated, and responsible response, the sector will remain vulnerable to measures that weaken its legitimacy, even while operating legally.
Given this scenario, how do you promote brands ethically and responsibly in a regulated environment, especially amid growing resistance to the industry itself? Some of that resistance stems from legitimate public health concerns. But much of it comes from misconceptions about what the industry truly is.
Many still don’t know there are two betting markets operating in Brazil: the legal and the illegal. Many still don’t realize the illegal market isn’t exclusive to Brazil and that it also impacts regulated operators and bettors in many other countries.
Many still don’t know what the .bet.br domain is or why it exists. Just look at the recent debates in the CPI of 'Bets'. Pretending this reality doesn’t exist is a mistake. And penalizing those who follow the rules only does one thing: pushes the player straight to the other side.
High CAC and tight margins form a dangerous equation. The only way out is to raise lifetime value with strategies that prioritize retention, recurrence, and reputation. Responsible Gaming must be seen as a strategic investment, not a cost center. It’s compliance plus marketing, not just compliance. It’s a tool that strengthens brands, differentiates operators, improves the sector’s reputation, increases player retention, lifetime value, and return on investment. It’s a brand asset and needs to be treated like one.
The social license will come from public commitment, active listening, and the courage to show up as a legitimate part of Brazil’s entertainment industry. No operator or industry group will solve this alone. The industry needs to act now and making Responsible Gaming its flagship is how we ensure this game keeps being played.
Thiago Iusim
Founder | CEO Betshield Responsible Gaming
www.thebetshield.com
