Brazil could legalize online sports betting
Brazil is suffering one of its worst economic crises as a result of the global COVID-19 pandemic. Due to its power, the Latin American giant has always been an appetizing dish for companies in the igaming industry, be it operators or suppliers. However, Brazil suffers from very poor gambling legislation. The fundamental question now is the taxes that are expected to be collected thanks to online and face-to-face gambling. The estimates are promising.
According to federal Deputy Bacelar, the state of Bahia would have enormous potential due to the influx of tourists for the establishment of gambling venues, whether it is bingos, casinos or betting shops. ©soel84/Pixabay
We could be talking about a market worth close to ten billion dollars. more than one and a half billion in taxes . The estimates would be annual for the entire gaming sector, which would thus become an industry of enormous economic potential for Brazil.
The federal deputy Bacelar would have stood as one of the staunchest defenders of the legalization of gambling in Brazil , which would be, in his understanding, a way out of the economic crisis of which the global COVID-19 pandemic that is wreaking havoc in the South American country is to blame.
Instead of favoring the establishment of casinos in integrated resorts , which according to the federal deputy would only favor the largest American corporations in the sector interested in investing in Rio de Janeiro and São Paulo, a strategy of legalization of all branches of industry independently , which would favor its expansion throughout the country.
On the other hand, there would be the question that illegal gambling continues to favor currency evasion and money laundering, while the informal gambling economy that exists today in Brazil, would be subtracting from the federal state income in tax matters. According to Deputy Bacelar, with the legalization of gambling we would be facing an industry at the disposal of create more than half a million direct jobs and others both indirect; precisely in a sector that is suffering from a strong global crisis .
Jair Bolsonaro signs the decree on sports betting
This same August, President Jair Bolsonaro signed the decree appointing the National Bank for Economic and Social Development (BNDES) and the Ministry of Economy. for the implementation of the legislative framework concerning the legalization of sports betting.
The legislation had been approved in 2018 under the government of President Temer provisionally (846/2018), which was the first step for the regulation of sports betting, both online and in physical locations .
The legislative movement is located within the framework of the so-called Investment Partnership Program (PPI), or the investment company program, which it would allow private operators to offer sports betting to local customers. Among the operators with interests in such a program would, of course, be large foreign firms that would have set their eyes on the Brazilian market .
It would now be the responsibility of the BNDES and the Ministry of Economy to guard the privatization process, taking into account both the carrying out of studies and examinations about the viability of the entire process, as well as the granting of the corresponding licenses , which would not exceed 30, at first.
In any case, critics of the process argue that the step to which the legislation is going in Brazil is excessively slow, both for the legalization of online gambling and with regard to physical casinos. Which certainly makes the operators desperate eager for the Brazilian gambling and betting market to open up all at once.
Bookmakers do not waste time
However, the big operators have not wasted any time. The football that, as in Europe , is located in front of the sponsorships by bookmakers , has been closing important deals.
It is estimated that 14 of the 20 teams that are part of the Brasileirão, something like the first division of Brazilian football, have established some form of agreement with bookmakers. Operators such as Betsson Suaposta, NetBet, Betsul, Casa de Apostas they are represented in the market, while the Israelites of Galera Group (galera.bet) have signed with the big Brazilian football clubs Corinthians and Cruzeiro.
