Understanding Regulated Gaming in Brazil. Why Crash Games Are Legal.

This post is also available in: Brazil

Brazil’s recent gambling regulation, from sports betting to online casinos, has opened a new frontier for entertainment and economic opportunity. Among the innovative offerings are the so-called crash games, known for the popular title “Aviator”.

These games are characterized by a dynamic betting system and player-centered gameplay. They fall within the ambit of Brazil’s new gaming law but represent a niche that deserves a more precise definition and attention in regulatory ordinances.

Crash Games Definition and Game Mechanics

Crash games like Aviator introduce players to a unique betting experience. They combine elements of traditional gaming with interactive, real-time decision-making.

The essence of Aviator is a fixed-odds betting system, where players bet on an increasing multiplier, akin to odds in sports betting. The game’s cornerstone is its cash-out feature, allowing players to withdraw their bet at any moment before the game concludes, mirroring the cash-out option in sports betting.

This model brings a live, strategic element to the gameplay, as players assess risks and decide their exit point in real-time. Behind an apparently complex random event generator, Aviator has a provably fair game technology and offers statistically verifiable 97% returns to player (RTP).

This mechanism holds up to the highest transparency standards in the gaming industry, while staying within the structured odds model. More importantly, it delivers the kind of user experience which aligns with legal definitions of online betting games under Brazilian law.

Legal Standing

Brazil’s regulatory framework for real-money games sets a clear precedent for including virtual games and events in its scope. Legal definitions speak of bets placed beforehand (or during gaming events), in anticipation of a prize based on a random future outcome in a virtual or online setting.

The Legal Experts’ View

Law No. 14,790/2023 legalized online games as a category of fixed odds betting lottery. Art.2 thereof contains definitions that determine whether crash games can be considered to be lawful in Brazil.
Virtual online gaming events are specified as virtual bets on games (made available on electronic channels) where result is unknown at the time the bet is placed and is determined by the outcome of a future aleatory event, using a random generator of numbers, symbols, figures or objects defined in the rules system.
To the extent the definition provided for online gaming is quite broad, practically any online game in which the bettor knows (based on the fixed odds) what the return on the bet will be at the time it is placed (whether before or during the event) will be considered to be lawful. The Ministry of Finance will have to further regulate – via an ordinance (or portaria, in Portuguese) – which online games fall within the above-mentioned scope. The ordinance, however, cannot alter or restrict the above legal definition.
The lawfulness of all such games will depend on whether, at each stage of the game, the multiplying factor of the amount wagered which defines the amount to be won by the bettor (fixed odds) will be applied allowing the bettor cash out in a timely manner at that level.
Provided a testing laboratory accredited by the Ministry of Finance confirms the above parameters, it would appear that such product should be considered lawful and available to the Brazilian iGaming industry.

Neil Montgomery | Montgomery & Associados

Clearly, Aviator and other crash games meet these criteria by offering:

  • A betting mechanism where players risk an amount for a potential prize.
  • Fixed odds that determine the payout.
  • A game result that hinges on a random, future event.
  • The possibility to cash out at any given time before the game ends.

The inclusion of these games in current regulations is justified by the way their betting model resembles sports bets – particularly in the mechanics of fixed odds and strategic cash-outs. Both require informed decision-making and risk assessment. And both remind us why regulatory oversight is needed to ensure integrity, fairness, and responsible gaming practices.

The Case for Public Awareness and Enhanced Regulation

Given the popularity of crash games, it is imperative that Brazilian regulators provide more explicit guidelines and oversight. This would not only ensure that such games operate within the bounds of responsible gambling standards but also foster innovation and growth within the industry.

We need more detailed regulations that are able to:

  • Clarify the classification and operation of crash games, ensuring they are recognized and defined within the legal landscape;
  • Establish comprehensive guidelines that oversee the operation, fairness, and transparency of these games;
  • Promote responsible gambling practices, including mechanisms for self-exclusion and limits on play, to protect consumers.

A Comparative Example – Aviator and Sports Betting

Consider the parallel between a sportsbook player betting R$ 1 on a combination of matches (for example, 10 football games) and an Aviator player betting R$ 1 on the multiplier increase.

In both scenarios, at any given time, players are presented with fixed odds – as the games progress (and some of them end) and as the multiplier rises in the crash game. They also have the option to cash out early, based on real-time developments.

If after 3 games the initial sports bet is worth R$ 10, the player can cash out and win a net R$ 9. If they wait until all 10 matches are played, quite possibly they might not get them all right and lose their initial bet. The same is true for Aviator – waiting to get a higher multiplier might not get you a better return as the game is likely to end before reaching the maximum payout.

This strategic decision-making, in the context of fixed odds (at a given point in time), highlights the similarity in the gambling mechanics of crash games and traditional sports betting.

Looking Ahead

Crash games like Aviator represent a new era in online gambling, one that merges the thrill of real-time betting with strategic decision making. Their inclusion within Brazil’s legal framework for real-money games is not only justified but necessary for ensuring a regulated, responsible and dynamic gaming market.

As Brazil continues to refine its regulations, acknowledging and explaining games like Aviator is crucial in ensuring the industry’s growth, integrity and contribution to the national economy. There is no better time for regulators, public figures and consumers to take the time to understand and embrace the future of paid online entertainment.

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