The government will gain because these illegal or not authorized casinos didn't pay tax, instead the casinos reduce the circulation money on the market because all the profit goes to few people aka who operated the casinos.
Regardless the citizen can bypass the restriction using VPN, but at least this could reduce people exposed/gamble on illegal casinos.
But, this will be bad for "us" meaning the casino we promoted might not as much as before lol.
Are you sure that this is the case? Because you talk as if Brazil is the only place where lots of gamblers are gambling on the online casinos we are promoting, thats impossible, i don't believe that there are so many Brazilians on here compare to people from other part of the world.
Honestly, if Brazil is facing the same hardship like my country I can bet with anyone that the citizens already find their ways around, there are smart people in Brazil as well, they can just find another online casino that's based in a far distance and use VPN to keep gambling.
The only way the government can keep this under control is putting an end to all internet connections in the country or getting rid of computers and smartphones in the country, north Korea did it so Brazil can be the second on the list, if not, gamblers will still keep gambling in the country.