Global Online Gambling Regulation Faces Diverse Challenges and Reforms

Brazil's Shifting Stance on Online Betting Regulation

Brazil's President Luiz Inácio Lula da Silva has sparked considerable controversy by calling for a ban on online betting, describing gambling addiction as a national “tragedy.” His remarks, delivered on International Women's Day, highlighted concerns about families facing debt from mobile gambling. Lula urged collaboration among government, Congress, and the judiciary to prevent digital casinos from "destroying homes."

This proposed ban comes despite Lula's own government regulating online gambling in December 2023, with the licensed market launching in January of last year. This legislation included robust player protective measures, such as a national self-exclusion scheme. Industry leaders like Ramiro Atucha of Atucha Strategic Advisory and Udo Seckelmann of Bichara e Motta Advogados have condemned Lula's comments as “disrespectful” to investors and a “misunderstanding” of the legal sector.

“Prohibition would not eliminate the market – it would simply push it back into the shadows.” – Udo Seckelmann, Partner for Gambling & Crypto at Bichara e Motta Advogados

They warn that a ban would redirect players to the black market, undermining tax collection and establishing a negative precedent for future investments in Brazil. The Association of Women in the Gaming Industry (AMIG) also expressed “surprise and concern,” noting the president's disregard for women's roles in the gaming industry. Lula's administration has previously attempted to increase operator tax rates, approving a gradual rise to 15% from 2028 after earlier proposals failed.

AI Chatbots Accused of Steering Users to Unlicensed Casinos

A recent Investigate Europe probe has uncovered that prominent AI chatbots, including MetaAI, Gemini, and ChatGPT, are consistently guiding users toward unlicensed offshore betting sites. This raises serious concerns about the integrity of information in sensitive sectors like gambling.

Over two weeks, researchers used prompts requesting details on “best bonuses” and methods to bypass national self-exclusion schemes. The chatbots frequently recommended sites lacking domestic licenses, often appearing on official European gambling regulators' blacklists. For example, MetaAI recommended an unlicensed casino in 27 out of 30 prompts, Gemini in 26, and ChatGPT in 22.

These AI platforms often echoed marketing messages from unregulated operators, highlighting features like rapid withdrawals, anonymity, and lucrative bonuses. One chatbot even referred to “no-ID casinos” as the “Holy Grail” for circumventing identity verification. The promotion of cryptocurrency-based casinos for their “anonymity” and “lack of rigid limits” further exacerbates player protection issues.

Regulators and gambling addiction charities have voiced alarm over these findings. Tiemo Wölken, a member of the European Parliament, described the revelations as “worrying,” emphasizing the risks of AI inadvertently facilitating access to illegal gambling. Will Prochaska from the UK Coalition to End Gambling Ads stated that promoting illegal casinos “undermines the rule of law and puts people in danger.”

Goa, India, Implements Steep Casino License Fee Hikes

In a move to increase revenue and enhance oversight, Pramod Sawant, Chief Minister of Goa, India, announced a 200% increase in licensing fees for new land-based casino operators. Additionally, annual license rates, application costs, and transfer fees for liquor shops and restaurants, which can impact casinos, will also see steep hikes. Sawant clarified that no new offshore casinos would be permitted, keeping the number of floating casinos fixed at six.

This decision coincides with ongoing environmental concerns and protests from Panaji residents regarding the impact of offshore casinos on river traffic and fisheries. Retired Allahabad Chief Justice Ferdino Rebello, associated with the 'Enough is Enough' activist movement, indicated plans to contest a new 2,000-passenger casino boat and challenge other irregularities.

The government's budget supports “Viksit Goa 2037,” a strategy for economic growth and sustainable development. As part of broader iGaming policy, Sawant's administration recently proposed appointing a gambling commissioner. This official would possess authority over all gaming operations, from player profiling to anti-money laundering measures, and have the power to shut down non-compliant casinos, reinforcing the state's commitment to robust regulatory enforcement.

Netherlands Issues Record Fines Against Offshore Operators

The Dutch gambling regulator, Kansspelautoriteit (KSA), has levied significant fines against two offshore operators, Fortaprime SRL and Novatech, for illegally targeting the domestic market. Fortaprime was fined €1.8m, while Novatech received a record-breaking €24.9m, the highest amount ever imposed by the KSA on an offshore operator. The KSA found that both operators allowed Dutch players to create accounts, deposit funds, and play without a license.

Several severe breaches were identified, including a lack of visible age verification and the option for cryptocurrency payments, which is considered a significant red flag for money laundering risks. KSA Chairman Michel Groothuizen noted that the fines were capped at 10% of global turnover by law, implying the violations warranted even higher penalties. Novatech, for instance, generated hundreds of millions from its illegal offerings, predominantly from Dutch players.

In addition to the illegal offerings, Fortaprime's services were advertised by Dutch influencers, a practice strictly prohibited in the Netherlands. The KSA warned that these influencers could also face financial penalties. These actions underscore the KSA's commitment to increasing player safety measures and cracking down on black market operators, especially as the authority navigates challenges like dwindling channelization rates and increased tax burdens amidst a new government's review of the KOA Act's online gambling reforms.

Slovakia Boosts Gambling Governance with Academic Partnership

Slovakia's Gambling Regulatory Authority (URHH) has partnered with the Faculty of Education at the University of Trnava to develop a new program focused on raising public awareness of gambling risks and harms. This memorandum of cooperation aims to integrate “professional knowledge and academic training” into Slovakia’s education and government systems to minimize exposure to gambling addiction and related issues.

The initiative grants the university access to national gambling data, enabling the creation of an educational framework for lecturers and students. The program will explore gambling regulation, addiction prevention, digital environment risks, and emerging online gambling formats. Upon completion, the University of Trnava will publish professional consultations and academic outputs, including methodological materials for schools.

Libuša Baranová, Director General of URHH, emphasized the need for a sophisticated approach to address the increasing impact of gambling and digital addictions on the younger generation. She believes combining regulatory expertise with academic research will strengthen prevention efforts and foster future educators as pillars of prevention. This project reflects URHH’s broader strategy to enhance gambling protections, especially as online gambling surpassed land-based venues in player losses in 2025, reaching €570m compared to €469.3m.

Despite political debates and calls for reforms to the 2019 Slovak Gambling Act in the National Council, previous legislative attempts, such as those proposed by Minister of Sports and Tourism Rudolf Huliak, were blocked. President Peter Pellegrini declined to sign amendments in December, citing concerns about competitive safeguards. The government anticipates reviewing broader proposals for improved gambling governance in 2026.