Governments across the globe are stepping up efforts to regulate the online betting and real-money gaming industries, with Brazil and India both announcing sweeping new measures aimed at curbing the social and financial harms associated with these booming sectors. The moves come as concerns mount over the vulnerability of minors, the exploitation of economically disadvantaged groups, and the unchecked growth of illicit gambling operations promoted by influencers and celebrities.
In Brazil, the government is on the verge of launching a centralized platform designed to distribute information to licensed bookmakers, specifying exactly who is legally barred from placing online bets. According to Estadão, this list—now in its final stages at the Ministry of Finance’s Secretariat of Prizes and Bets (SPA)—is set to become the backbone of a new regulatory push intended to clean up the country’s rapidly expanding betting industry. Once implemented, betting companies will be required to refuse registrations, deposits, and wagers from any user flagged by the government. If a person already holds an account and is subsequently added to the list, companies must block their access and return any remaining funds.
The list of those prohibited is extensive. It includes recipients of Bolsa Família and Continuous Cash Benefit (BPC) social programs, minors, public officials with ties to the betting sector, professional athletes, referees, sports officials, inspectors, coaches, individuals with gambling addictions, people who have self-excluded, and anyone prohibited from betting by a specific court order. This development follows a landmark decision by the Federal Supreme Court (STF) banning beneficiaries of social programs from gambling—a move that has drawn both praise and criticism.
“[Betting companies] are not only harming adults, unfortunately people with fewer resources, but even teenagers are spending their parents’ and family’s savings on this type of betting,” declared Ricardo Lewandowski, Brazil’s Minister of Justice, in March 2025, as quoted by Estadão. The Ministry of Justice has highlighted that teenagers remain especially vulnerable to online gambling addiction, with approximately 55% of gamblers aged 14 to 17 at risk, compared to nearly 38% among adults. These figures underscore the urgency behind the government’s latest initiatives.
This regulatory drive is unfolding alongside a high-profile crackdown on illicit gambling operations, most notably through “Operation Desfortuna.” The Civil Police of Rio de Janeiro have led a series of raids—executing 31 search-and-seizure warrants across Rio, São Paulo, and Minas Gerais—targeting a network of influencers accused of steering millions of Brazilians toward illegal betting sites. According to Estadão, 15 influencers have been charged, their collective social media reach eclipsing that of many mainstream media outlets.
Among those arrested is Maurício “Maumau ZK,” a prominent influencer detained in São Paulo after police discovered an unregistered firearm with its serial number removed at his home. From his prison cell, Maumau defended himself in a video, stating, “I’m not a thief, I’m not a criminal.” He insisted the weapon was part of a publicity stunt and maintained that his involvement with online gambling was limited to a marketing agreement. He was released the same day on R$151,800 bail—the maximum allowed for illicit weapons possession—but remains under strict court-imposed restrictions.
Brazil’s efforts to rein in online betting come at a time when the sector’s rapid growth has outpaced regulatory oversight, fueling both legitimate business and criminal activity. The government’s new platform aims to give betting companies the tools to enforce the law more effectively, but as industry representatives told Estadão, “the rule is still difficult to enforce without a government platform that unifies these people’s information.” The hope is that this new system will close that gap, protecting vulnerable groups and restoring some measure of public trust.
Meanwhile, on the other side of the globe, India is preparing to introduce one of the strictest regulatory frameworks yet for real-money gaming. As reported by TechCrunch, the Indian government’s draft Promotion and Regulation of Online Gaming Act, 2025, would impose a blanket ban on all real-money games—whether based on skill or chance. The proposed law would outlaw not just the games themselves but also their advertisements and any financial transactions related to them.
“No bank, financial institution, or any other person facilitating financial transactions or authorization of funds shall engage in, permit, aid, abet, induce, or otherwise facilitate any transaction or authorization of funds towards payment for any online money gaming service,” the draft legislation states. The penalties are severe: companies could face up to three years in prison and fines of up to ₹10 million (roughly $115,000), while celebrities who promote such games could be sentenced to two years in prison or fined up to ₹5 million (about $57,000).
The stakes are enormous. India’s online gaming industry generated a staggering $3.8 billion in revenue in the 2023–24 financial year, with real-money gaming accounting for $2.4 billion of that total, according to a report by gaming-focused VC firm Lumikai. India also boasts the highest number of real-money gaming startups in the world, with unicorns like Dream Sports, Games24x7, and WinZO counting millions of users and billions in investment. For many of these companies, real-money gaming represents over 85% of their total revenue, making the potential impact of the new law existential.
Industry leaders and investors are deeply concerned. “Businesses will shut if the legislation comes into force,” the founder of a leading Indian real-money gaming startup told TechCrunch anonymously, as the draft is not yet public. Another investor warned, “All unicorns in this sector are going to be significantly impacted due to the move if it comes true.”
The push for regulation follows a series of tragic incidents, including suicides linked to losses in real-money games, which have intensified public scrutiny. While industry stakeholders blame offshore betting and gambling apps for many of the worst abuses, the government’s response has been uncompromising. In 2023, authorities imposed a 28% tax on online gaming—a move the industry called “catastrophic” and “unconstitutional”—and recent reports suggest the tax could rise to 40%. Companies have challenged the retrospective application of the tax in the Supreme Court, but the government has shown little sign of backing down. The new bill, which empowers the government to create a regulatory authority, could be introduced in parliament as early as August 20, 2025, according to local media reports. The Indian IT ministry has so far declined to comment.
This isn’t India’s first attempt to bring order to the sector. In 2023, amendments to the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021, sought to curb “user harm” by establishing self-regulatory bodies to approve legitimate games and restrict illegal betting. However, disagreements among stakeholders led to the model’s collapse, prompting the government to pursue more direct intervention.
As Brazil and India move forward with their respective crackdowns, the world is watching closely. The balance between protecting vulnerable populations and supporting innovation in one of the fastest-growing entertainment sectors remains as delicate as ever. For now, both countries are betting that stricter rules—and stiffer penalties—are the answer.
With regulatory tides shifting and industry giants bracing for impact, the future of online betting and real-money gaming in these two major markets hangs in the balance.
