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Brazilian media recently reported cases of influencers being compensated with large sums of money to promote online betting platforms. Commissions in certain deals are as much as 30% on players’ losses, thus the hyperbolic phrase “fee of others’ misfortune.” While the phrase has caught on in media usage, the moralistic tone of the term distorts the structural truth of how the betting industry functions.
In reality, operators, licensed and otherwise, do enter into such contracts on the basis of commissioning on the GGR (Gross Gaming Revenue), an old and true concept in regulated gaming jurisdictions everywhere.
As Amilton Noble, president of Hebara, outlined: “The government also receives a share of the so-called ‘clause of misfortune.’ The entire revenue chain of gambling comes from the total bet minus prizes returned. Commissions are paid on results obtained—like taxes.”
That is to say, taxes and commissions are just a fraction of any venture. The resulting objection of the betting industry, framed in terms of profiteering on “misfortune“, does not understand its economic legitimacy.
Real Risks: The Case of Operation Desfortuna
While “fee of others’ misfortune” is what hits the headlines, Brazil continues to grapple with real problems resulting from illicit operators. An example is Operation Desfortuna, where influencers were arrested for being linked to the notorious “Tigrinho game“, which is connected to scams and illicit gambling activities.
Other investigations, such as Game Over and Integration, revealed how secret operators lure gamblers with false propositions, ensure money laundering, and engage popular personalities in illegal networks.
These activities focus on where action against enforcement must be directed: taking down the criminal buildings, not stigmatizing an entire industry. Criminal behavior must be prosecuted aggressively, but it is simplistic and inexact to characterize regulated betting as criminal.
Entertainment, Jobs, and Tax Contributions
The regulated betting market in Brazil is not only a hub of entertainment but is also an active contributor to the economy of the nation. Licensed operators pay concession fees, taxes, and generate thousands of jobs in technology, operations, and marketing.
Equally important, most operators place responsible gaming principles at the top of the list, for example, financial limits, player protection tools, and open practices. It then renders betting a type of leisure, similar to watching a movie, theater, or sporting event, rather than a social disaster.
In addition, advertising in the business supports entire media, marketing, and entertainment ecosystems. The payment for “time and attention transfer” is the same as in other industries where advertisers try to win consumer attention.
The Industry’s Responsibility
Although it is legal, the Brazilian betting industry would need to embrace its part in promoting the public image. Some of the marketing budget would be channeled to educational campaigns that would educate the population about responsible gaming and distinguish between the legal and illegal operators.
It would not just reinforce the social image of the industry but also arm gamblers with better tools to make informed choices. The public discourse would become more levelled, shifting away from stereotypes of “bad luck” to a vision of gambling as controlled entertainment within a system of regulation.
A Path Forward
Operations like Desfortuna are required and should be applauded because they target truly harmful operations. But it is a mistake to extrapolate and say the entire betting landscape is criminal. The regulated market is healthy, accessible, and founded on compliance, consumer protection, and economic contribution values.
The phrase “fee of other people’s misery” forgets the tenets of GGR and the behavior of legal markets everywhere in the world. The solution is not with stigmatization but with painstaking regulation, strong enforcement against illegal forces, and spending on open public communication.
In the context of regulation, gambling is never a tragedy; it’s leisure. It’s a difference in perception, important to deliver for both public protection and a sustainable industry.
Source: YogoNet
