Recently, in the year 2024, the brazilian government saw a large source of money coming into online casinos (since physical casinos are prohibited by law), and since then, so as not to make this post too long... the brazilian government had the "brilliant" idea of requiring that any casino that wanted to operate in brazil would have to regularize itself and follow the country's rules, or its website would be blocked.
Getting a license in the country a casino wants to operate in the global standard. And paying taxes is not strange since the government needs the money to finance its projects.
As a result, users are preferring to use unregulated casinos (they access the casino website outside of brasil via VPN or other methods) and are able to get better and more attractive odds than regulated casinos that pay high taxes to the government... as these pass on the costs of taxation, licensing, etc. to users, while unregulated casinos don't need to pass on additional costs and for this reason are more attractive to users because they offer better odds!
It will depend on the percentage of the tax. Gamblers will always invade tax if it is high. But they would always use regulated platforms if the tax is moderate. We shouldn't forget that there is a high risk in using unregulated casinos. Casinos that are not registered can engage in forms of unfair practices and get away with it.
This just shows that no government in the world understands the internet and how it works. The internet exists for this reason (it was originally created for this). In cases of government censorship, the internet is a communication protocol that is resistant to any type of censorship. Even though some casinos are banned from being accessed by brazilians, it is still possible to get around this ban via VPN and the like.
Some top government officials are not advised well. They don't consult the right professionals for sound technical advice. They should know that it is not possible to totally block access to the internet. There will always be means to bypass these restrictions. Therefore, instead of making stringent laws to push people to unregulated platforms, they should make less stringent laws.