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Key Points 

• United States and Brazil are taking regulatory measures to manage risks and opportunities associated with gambling
• Lawmakers introduce the Safe-Bet Act to address gambling addiction, mislead advertisement, and the misuse of Artificial Intelligence
• Meanwhile, the Brazilian government launches a new ordinance to combat manipulation of results and frauds in bets

Sports betting has become a booming industry globally, bringing with it a mix of economic benefits and social challenges. In the United States and Brazil, recent regulatory measures highlight different approaches to managing the risks and opportunities associated with this fast-growing sector.

Both countries are taking steps to address issues like addiction, fraud, and the integrity of sports, while grappling with the economic benefits that betting platforms generate.

In the United States, the legalization of sports betting has seen unprecedented growth since the Supreme Court overturned a federal ban in 2018. Today, 38 states have legalized betting, with the industry generating a record $11 billion in 2023 — a 44% increase from the previous year.

However, this rapid expansion has led to mounting concerns about gambling addiction, misleading advertising, and the use of artificial intelligence to target players. To address these issues, lawmakers Rep. Paul Tonko (D-NY) and Sen. Richard Blumenthal (D-CT) recently introduced the SAFE Bet Act, which aims to establish federal standards for sports betting operators.

The proposed legislation focuses on three main areas: advertising, affordability, and the ethical use of artificial intelligence.

The bill seeks to curb aggressive marketing strategies, such as advertisements during live sporting events and promotions offering “bonus bets” that entice excessive gambling.

It also proposes limiting customer deposits to five transactions within a 24-hour period and mandating affordability checks for high rollers. Additionally, the bill would ban the use of AI for tracking gambling habits and targeting individuals with personalized promotions.

These measures aim to balance the enjoyment of sports betting as a recreational activity with the need to protect vulnerable individuals.

The SAFE Bet Act has sparked a heated debate. Advocates argue that state-level regulations are insufficient, citing a 25-30% increase in bankruptcy rates in states with legal betting, as well as alarming statistics on gambling addiction.

An estimated 7 million Americans face gambling-related problems, with one in five problem gamblers having attempted suicide. Opponents, including some state regulators and industry representatives, claim that existing frameworks already ensure consumer protection and contribute significantly to state tax revenues.

The American Gaming Association has called the bill a “slap in the face” to state regulators, emphasizing the industry’s efforts to ensure responsible gambling practices.

While the U.S. debates the SAFE Bet Act, Brazil is taking its own steps to regulate the sports betting landscape. On November 11, 2024, the Brazilian Ministry of Sports enacted ordinance No. 109, which aims to strengthen sports integrity and combat match-fixing in betting contexts.

Unlike the U.S. approach, which centers on consumer protection and gambling addiction, Brazil’s regulations seem to focus on safeguarding the fairness and unpredictability of sports events.

The Brazilian ordinance requires betting operators to report any suspicious activities or policy violations to the Ministry of Sports.

To ensure transparency, the Ministry collaborates with law enforcement, the Public Prosecutor’s Office, and the Committee for Fair Play in Sports.

The ordinance also establishes an administrative process for investigating allegations of match-fixing, with the Directorate of Integrity in Sports Betting overseeing these efforts.

Educational programs targeting athletes, referees, and sports professionals are also a key component of the policy, aiming to promote awareness about the risks of match manipulation.

Brazil’s measures reflect a proactive stance on integrity, with partnerships being formed between the Ministry of Sports and specialized monitoring organizations to detect suspicious patterns in betting markets. The country also emphasizes the protection of whistleblowers, offering confidentiality and safeguards against retaliation for individuals reporting violations.

Responsible gambling plays a pivotal role in creating a balanced and sustainable sports betting ecosystem, especially as the industry grows rapidly and becomes more accessible through digital platforms.

Sportsbooks like KTO, a bet in Brazil, promote responsible gambling by emphasizing good practices and the availability of resources such as spending limits and timed breaks to help prevent excessive gambling behavior

Research from France has shown that even brief pauses during gameplay can yield long-term benefits, encouraging healthier betting habits. Furthermore, casual and moderate-risk players often report positive experiences with responsible gambling measures, while those facing addiction are more likely to engage with these tools.

Despite these efforts, many players, particularly those at higher risk, still underutilize these resources.

As Brazil and the U.S. introduce new regulations, embedding strong responsible gambling policies is crucial to ensure a safer gaming environment. While the U.S. aims to standardize regulations across states to address addiction and advertising nationally, Brazil focuses on protecting the integrity of sports through education and legal measures against match-fixing.

Although their approaches differ, both countries emphasize the need for regulation to create a fair, transparent, and safe environment in the sports betting industry.