Brazils path to a legal gambling sector has encountered another obstacle. The Senate’s gaming legislation, PLS 186/2014, has been postponed once more, this time by the Constitution and Justice Committee (CCJ). Further complicating matters, rumors circulating in Brasilia suggest that the impending elections in the coming year could delay a final decision on the bill until 2019.
This holdup is especially disappointing considering the potential financial benefits for Brazil. A recent analysis conducted by KPMG, commissioned by the Remote Gaming Association, projected that a properly regulated online gambling industry in Brazil could yield a substantial $2.1 billion each year. The study highlighted the importance of a transparent and sensible licensing framework, a tax system based on gross gaming revenue (not turnover like some recent jurisdictions), and strong responsible gaming safeguards for both online casino offerings and sports wagering.
Nevertheless, as the goal of regulated gambling seems to perpetually drift further away, many are shifting their focus to a different prospect: the privatization of LOTEX, the Rio de Janeiro state lottery.
To add insult to injury, mere days before the scheduled vote, certain senators even introduced new, contentious amendments. One such amendment would compel gambling companies to establish joint ventures with domestic businesses, granting the Brazilian partners a minimum 30% ownership.
A daring legislative change suggested a substantial 30% levy on all gaming earnings in Brazil, aiming at both land-based and internet-based platforms. This ignited significant discussion, as did a suggested prohibition on slot and video bingo amusements outside of gambling establishments. In the end, neither action made it into the final legislation. Nevertheless, the Justice and Constitution Committee (CCJ) did consent to forbid these amusements outside of casinos.
The CCJ has opted to postpone further rulings on Bill 186, as a panel examines the possible consequences of a legalized gaming sector. This mirrors the intricate and contentious character of gambling legalization in Brazil. While some legislators advocate for it, others stay firmly against it, hindering advancement for years. This reluctance is comprehensible considering the unlawful gaming market in Brazil yields an estimated $6.2 billion yearly, according to the Brazilian Legal Gaming Institute, emphasizing the potential downsides and prospects at hand.
