How Betting Works: Types, Modalities and Differences Between Legal and Illegal Betting

Betting is essentially an agreement where two or more parties place money or something of value at risk by betting on the outcome of a future event. The main goal is to predict the outcome and thus receive a financial return, often higher than the initially invested amount. There are two fundamental elements in betting:

The risk: The bettor wagers with uncertainty about the outcome. If the result is favorable, they win. If not, they lose the staked amount.

The odds: Known as probabilities or quotations, the odds indicate the potential return in case of a win. The more unlikely the event, the higher the odds and, consequently, the payout if successful.

Betting can be divided into several categories, each with specific characteristics and operations. Below, we detail the most common types of bets.

Sports Betting: Sports betting is among the most popular worldwide. In it, the bettor wagers on the outcome of sporting events, such as soccer matches, horse races, or tennis competitions. With the rise of digital platforms, these bets have become accessible and diverse, allowing bettors to choose everything from the match winner to more specific events, such as the number of goals or the time in the game when a goal will be scored. Sports betting is usually regulated, and many countries have laws controlling these platforms.

Lotteries: The lottery is a widely popular and regulated type of bet. In many countries, including Brazil, lotteries are controlled by public or state agencies. Participants buy tickets with a sequence of numbers and await the draw, which happens on specific dates. The lottery is known for its large accumulated prizes, such as Mega-Sena in Brazil. Lottery revenues are often used to fund social and educational programs.

Casinos: Betting in casinos includes a variety of games, such as roulette, blackjack, poker, and slot machines. In many countries, physical casinos are regulated, and where gambling is legal, casinos pay taxes and follow strict rules to protect players. In Brazil, for instance, physical casinos have been banned since 1946, but debates about their legalization continue.

Bingo: Bingo is another popular type of bet, mainly among older audiences. The mechanics are simple: players mark numbers on a card as they are drawn. In Brazil, bingo has been regulated and banned at different times, but online versions allow player participation, with regulation in some cases.

Financial Betting (Day Trading): A more modern type of betting involves financial markets, where traders bet on the rise or fall of stocks, commodities, or currencies. Although financial betting is seen by some as investment, it shares many similarities with gambling, as the outcomes are uncertain, and the risk is high. Financial trading platforms are legally regulated but require a high level of knowledge to avoid significant losses.

Legal Betting:

Legal betting is regulated by governments or regulatory bodies, which ensure transparency and safety for players. In countries like Brazil, sports betting and lotteries are examples of legal betting. In the case of lotteries, such as Mega-Sena, Timemania, or Lotofácil, Caixa Econômica Federal is responsible for organizing and overseeing the drawings, ensuring that part of the revenue is allocated to social programs.

Sports betting platforms have also become legal and regulated in Brazil since 2018, when the government authorized the legalization of this type of betting, although there are still debates about the full implementation of the regulations.

Advantages of legal betting:

Safety: Players have protection against fraud and abuse.

Transparency: There are clear rules about the operation and distribution of prizes.

Social contribution: Part of the revenue is allocated to public programs, such as health, education, and sports.

Illegal Betting:

On the other hand, illegal betting takes place without any supervision or regulation, posing a great risk to players. The "Jogo do Bicho," very popular in Brazil, is an example of illegal betting that operates outside state control. This type of betting can lead to fraud, as players have no guarantees that the game is fair or that they will receive their winnings if they win.

Risks of illegal betting:

Absence of protection: The player is unprotected against fraud and has no recourse if something goes wrong.

Social impacts: Illegal betting does not contribute to social programs and can destabilize the local economy.

The practice of betting, when conducted in a controlled manner, can generate positive impacts, such as the financing of social programs through regulated lotteries. However, the rise of digital platforms and the proliferation of illegal betting have sparked debates about gambling addiction and its consequences.

Gambling addiction, known as ludopathy, can lead to severe financial problems, affecting the personal and family life of the players. The World Health Organization (WHO) recognizes gambling addiction as a condition requiring specialized treatment. Many countries have implemented programs to help compulsive gamblers, but there is still much to be done in terms of awareness and support.

Betting, whether in lotteries, sports, or casinos, has been part of human culture for centuries, offering entertainment and, for some, the possibility of huge prizes. However, it is crucial to distinguish between legal, regulated, and safe betting and illegal betting, which present significant risks to players and society.

While legal betting can positively contribute to social programs and the economy, illegal betting is dangerous, involves fraud, and often finances criminal activities. As with any risky activity, it is essential that players are informed and that governments reinforce regulation and control over these practices, ensuring the safety of everyone involved.