Rob Jones: What Brazil can learn from Spain, Italy and the Netherlands

As a gaming regulation expert and former CLO, what is your overriding impression of Brazil's online betting ban? 

My overriding impression is that this is an extraordinary example of political risk becoming regulatory reality. Anyone who has worked in regulated gambling for long enough understands what I call "regulatory creep." The initial licensing framework is rarely the final word. There is almost invariably a second wave of regulation as governments respond to concerns that emerge once a market is operating, whether around advertising, responsible gambling, consumer protection or taxation. That is to be expected, and it is something operators and suppliers alike should factor into their investment decisions. Governments are perfectly entitled to strengthen regulation, particularly where legitimate concerns about gambling-related harm emerge. 

However, businesses also need a reasonable degree of regulatory certainty. Entering a market requires substantial investment, and those making that investment need sufficient confidence in the regulatory framework to assess whether they can generate an acceptable return over time. Brazil spent years developing its licensing regime, inviting businesses to pay substantial fees, establish operations and commit capital. Having done so, the Government has now introduced a provisional measure effectively bringing the newly regulated online betting and gaming market to an end less than two years after its launch. That is something fundamentally different from the normal evolution of regulation.