Gambling in a Developing Market Exploring Institutional Voids Through Netnography

Abstract

The study investigates how institutional voids influence the growth of online gambling platforms in Brazil, focusing on virtual casinos and sports betting. The research adopts non-participatory netnography as its methodology, combining observations on two selected platforms with analyses of search trends on Google Trends™ (2019–2024). The findings indicate that institutional voids, characterized by the absence of regulatory norms and structures, allow platforms to exploit normative gaps to operate and attract consumers. Simultaneously, users expressed distrust regarding the integrity and transparency of the games, highlighting perceptions of manipulation and dissatisfaction with outcomes. The theoretical contribution of the study lies in applying the concept of institutional voids to a rapidly expanding digital market, thereby enhancing understanding of the impacts of deregulation in developing countries. Practically, the study underscores the urgency of establishing a regulatory framework that balances technological innovation, consumer protection, and social responsibility. The research also offers insights for public policy formulation aimed at enhancing the legitimacy of platforms and encouraging sustainable practices.