Something similar happens here in Italy 10-15 years ago.
Personally, Ithink this as a big defeat and a great disaster. At least here, with the fake promo "avoid un-licensed bookmakers" or "they don't pay taxes", they create a monopole with just few actors that provide the worst odds on the market, avoid to launch global options (like exchange games), avoid new entities starts to play and many many other issues.
The only way it'll make much sense to me is if it was a prepared agenda to desolve the existing regulations, thereby replacing it with a new one for their selfish interest. Otherwise, why should the government create a monopoly in a business trend that obviously needs more resistance in accordance to the demand by the masses? They'll still try to deceive y'all by saying it'd be the only feasible way to evade the unending money laundering cases...
I'm sorry, but i assure you that the government's only interest is to collect more revenue, as it does this in all sectors of the market, not just betting.
Everything in brazil is extremely expensive because of taxes. The greatest proof of this is that even with this monstrous collection, the government ends the year with debt and inflation skyrocketing.
I find it very offensive to be told that what we practice today, the so-called democracy is the best system of government as it long became a weapon in the hands of the dictators -- like a string, connected to a puppet and controlled by a ventriloquist!
Whatever form of corruption or surge in prices of commodities doesn't happen in one country alone -- this is a universal problem and I'm not sure about their plans to reinstate, but I'm sure that the latter isn't possible at all...