It is spreading as a cancer. This month the central bank published a report saying that in August 20% of the Bolsa Família, the largest money transfer program for very poor Brazilians, was spent on these bets.
Out of the 20 million people that receive it, 5 million made bets during that month. This is 2 billion reais (about $450M) spent in a single month by the poorest Brazilians.
It's a cancer. Everywhere you go there are ads. The influencers, the biggest athletes and musicians are marketing it.
Although I tend to be liberal, this needs to be heavily regulated.
As a libertarian however, I break with the opinion of making consensual activities illegal even if they are self-harming. So I guess my stance is probably the same as addictive drugs. They could be legal, but come with the same labeling, warnings, ID requirements and age restrictions that come with a pack of cigarettes. We should probably be educating kids about the dangers of addictive apps like we once did with DARE on the dangers of drugs.
Are you sure they did? Maybe they were just OK with programs that didn't actually work.
What does work is restricted access through age limits, closing times, and higher prices (through taxes is what's been studied, but it's safe to say making something illegal also increases prices). These are unpopular policies, and those who profit from alcohol/gambling/etc. have an easy time mobilizing opposition to it.
What has been studied little, but was a big part of historical anti-alcohol movements until total prohibition won out, was profit bans. Government/municipal monopolies were justified in that it took away regular people's incentive to tempt their fellow citizens into ruin, and the idea was that while government may be corrupted by the profit incentive, at least they carried the costs of alcohol/gambling abuse as well. (Some teetotallers didn't think that was enough, and came up with rules that e.g restricting municipal monopolies from spending the profit as they pleased)