It depends on what regulations they're looking for. If they simply wanted to reduce the amount of casinos that are available for their citizens, then yeah sounds pretty good as a regulation. I mean it clearly doesn't make sense to h ave over 2000 betting sites, sounds weird.
Now if regulation means banning, I always said and will always do that banning something isn't the right step if you want to regulate it. Rather do what my initial thought above, control. Manage. It's a lot easier to handle something if it's under your eyes. Banning something would inevitably lead to illegal ones popping out after all.
The regulation is about payment methods to be used. Deposits, withdrawals and prize payments can only be made via electronic transfers. Operators are no longer to accept deposits through cash, bank slips, cheques, cryptocurrencies and credit cards. You can read this to understand more about it:
Deposits, withdrawals and prize payments can only be made via electronic transfers. Payments and prizes need to be paid to customers within a 120-minute window, beginning at the end of the sporting event.
This will place a heavy emphasis on the use of Pix, Brazil’s national instant payments system, as well as Available Electronic Transfer (TED), debit and prepaid cards, and Central Bank (BACEN) authorised general bank transfers.
Operators will not be able to accept deposits via cash, bank slips, cheques or cryptocurrencies. Meanwhile, any form of credit card transaction is explicitly prohibited for both bookmakers and payment service providers (PSPs).
Regarding payment providers, any PSP servicing operators must be registered and accredited with the Central Bank and not by any third party service. Lastly, customer incentives such as bonuses and free bets are also banned.