The Brazilian government is a communist government full of corrupt people, including the current president, an ex-convict sentenced to 12 years in prison for corruption in all instances of the judiciary. He was only released because of a political maneuver involving a lot of influence peddling.
I do not defend any government because I am a libertarian and a bitcoiner, but it seems that you do not have much knowledge of what is happening in Brazil, which has not been a democracy for a long time.
What does that have to do with regulating the gambling industry? Are you implying that because they’re corrupt, they’ll just steal the taxes they collect, so it’s better not to regulate at all and let it become a free market for both licensed and unlicensed operators?
The betting market is already free anyway,
you just need to know how to choose the casino you will play at and use cryptocurrencies to eliminate borders and eliminate the state of meddling in what the citizen wants to do. Only those who do not have the specific knowledge to circumvent the dictatorial system are subject to any regulation. No government is concerned about the citizen, especially communist governments.
That is the difficult part for people to find and choose the casino to gambling. Actually, if the government steal the taxes they collect, people will not know (or know) but as long as their government can gives something that people wants, their citizen will not do something and will enjoy that. When their citizen can get what they need and not have a difficult to find, they will not protest to the government even if their government corrupt.
Relating to the shut down of many casinos in Brazil, their government must have their own reason that we don't know. They will not just tell public the real reason but they will use other reason that makes sense for their citizen.