For decades, gambling markets evolved largely on the terms of operators and private capital. Today, however, politics has become the most influential stakeholder in shaping the industry’s trajectory worldwide. From Latin America to Southeast Asia and Europe, governments are increasingly asserting control over online betting, driven by fiscal imperatives, social concerns, and the promise of regulatory legitimacy.
Consider Brazil, where the clash between politics and gaming is stark. The country’s licensed online betting sector officially launched in January 2025, and within six months it generated R$17.4 billion in gross gaming revenue (≈US$3.3 billion), of which R$3.8 billion (≈US$720 million) flowed directly into federal taxes. An additional R$2.14 billion was earmarked for social programs. Yet, while the online vertical flourishes, the Senate continues to delay PL 2,234/2022—the bill that would legalize land-based casinos and bingo halls—because of opposition from the evangelical caucus and conservative blocs. Here, politics is not merely a referee but a gatekeeper, determining which verticals prosper and which remain in limbo.
In Thailand, the government has pivoted dramatically. After years of strict prohibition, Prime Minister Srettha Thavisin endorsed the legalization of integrated resorts as part of an economic revival strategy. In early 2025, the Thai parliament advanced legislation to authorize up to five IRs, each requiring minimum investment commitments of US$3 billion. The goal is not just tourism recovery but also a recalibration of national revenue streams. Political leadership, in this case, is catalyzing a structural transformation of the market.
Europe, meanwhile, illustrates the risks of over-politicization. A 2025 Yield Sec study revealed that 71% of online gambling revenue across the EU—equivalent to €80.6 billion—flowed to unlicensed operators. Governments lost an estimated €20 billion in tax revenue because regulatory frameworks were fragmented and often politicized. For example, the Netherlands’ tightening of advertising rules and proposed age restrictions has triggered uncertainty for licensed operators, while Italy’s historic ban on gambling ads continues to push consumers toward offshore sites. These policies reflect governments’ intent to demonstrate control, but they often undermine channelization goals, creating a paradox where stricter oversight fuels the very black markets regulators aim to suppress.
For the United States, the lesson is clear: political momentum is now inseparable from gaming economics. Whether it’s state-level battles over online sports betting expansion, federal rumblings about stricter data compliance, or the taxation debates surrounding DFS and iGaming, policymakers are asserting influence with unprecedented intensity. Investors, operators, and compliance officers must now factor political volatility as a core variable in strategic planning.
Politics has always shaped gambling, but never with such direct impact on market structures, investment flows, and consumer access. Brazil’s tax windfall, Thailand’s resort ambitions, and Europe’s black-market paradox all reinforce a singular truth: in 2025, governments are not just regulators—they are the dominant players at the table.
