Brazils attempts to open up and regulate the gambling sector hit another roadblock this week. Mere days before an anticipated vote, a group of senators proposed contentious new modifications, including a requirement for gaming companies to collaborate with domestic businesses possessing a minimum 30% ownership.
This development follows a November study commissioned by the Remote Gaming Association, which estimated that a well-regulated online gambling market in Brazil could generate up to US$2.1 billion per year.
The KPMG-conducted study emphasized the importance of Brazil implementing a “reasonable and efficient” licensing system, a tax structure based on gross gaming revenue (as opposed to turnover, like several recently regulated markets), and appropriate social responsibility safeguards for online gambling and sports wagering.
Nevertheless, as delays persist, optimism for a regulated gaming sector dwindles, shifting focus towards the privatization of LOTEX, the state lottery of Rio de Janeiro.
The Senate’s gaming legislation, PLS 186/2014, has been deferred yet again by the Constitution and Justice Committee (CCJ), with sources suggesting that next year’s elections could postpone the bill’s approval until 2019.
A daring alteration suggested a substantial 30% levy on all wagering earnings, encompassing both internet and brick-and-mortar venues. This ignited fiery discourse, as did a proposed prohibition on one-armed bandits and electronic bingo amusements outside of gambling establishments. In the end, neither of these contentious actions reached the final legislation, although the restriction on specific gaming devices beyond casinos was sanctioned.
The Judiciary Body (CCJ), acknowledging the profound influence of wagering nationwide, opted to defer a judgment on Bill 186 as they further probe its possible ramifications. This postponement highlights the intricate matters surrounding the authorization of betting in Brazil.
Further intensifying the situation, the Brazilian Institute for Legal Gaming approximates that illicit gambling ventures amass an astounding $6.2 billion USD each year.
For ages, the legitimation of wagering has been a contentious subject within Brazil’s legislature, with numerous proposals presented but ultimately faltering due to staunch resistance. This recent turn of events illustrates that the discussion is far from settled.
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