Brazil: gambling legislation up for debate
In a country where gambling has been illegal since 1946, debating this issue is not easy. The South American giant, which is still anchored in many preconceptions around the game, is nevertheless an enthusiast of the national lottery O Jogo do Bicho. Now, the Senate would be open to establishing a regulation that could legalize casinos. It's not the first attempt. In the online segment, positive steps are also being taken for the future of gambling and internet betting.
The Quintandinha Palace was built in 1941 to house what would be the largest casino in South America. Located in Petrólis, in the interior of the state of Rio de Janeiro, a good number of stars and politicians passed through its rooms. The prohibition of gambling in 1946 was a serious blow to the business. ©Gadini/Pixabay
The legalization of gambling has not been and it is not an easy issue in Brazil . The country is still anchored in the decree-law of April 30, 1946 by which President Gaspar Dutra declared the illegal gambling with the argument that gambling is harmful to morality and good manners.
In a country that boasts of being the first economy in Latin America, the revenues that gambling, both in face-to-face and online modalities, would report to the state would be considerable. According to the latest figures, you could be talking about $4 trillion a year . It is not surprising that many sectors of Brazilian society support gambling legislation.
The debate is open
There are not a few who demand for Brazil a legislation in line with the times. In this sense, Brazil would be in danger of lagging behind other countries in its environment whose legislations would be advancing to regulate gambling , especially in its online segment , which has grown in importance as a result of the global coronavirus pandemic.
According to an information that appeared in the non-governmental organization Instituto do Jogo Legal (IJL), the Paraná Pesquisas company would have conducted a consultation among more than 200 federal deputies . Faced with the question of whether they would be in favor of the legalization of all gambling, including betting, online and physical casinos, as well as the popular jogo do bicho , the majority of deputies, 52.1%, would have been in favor.
Another poll, this time conducted by Global Views in 2019, would have shown that 66% of Brazilians would be in favor of the legalization of gambling. The figures that were provided for such a lucrative business are not negligible at all. It is calculated that Brazil could have a gambling turnover of about 15 billion dollars annually , which would bring the state just over 4 billion.
Sports betting in the hands of foreign companies
There is no doubt that sports betting, especially in its online modality, is on the rise around the world . According to data, in Brazil online betting would be generating around 6 billion reais a year. However, the benefits of the game go to operators such as betcris, sportingbet or bet365 that operate from websites located outside Brazil. In this way, the state ceases to collect taxes for the activity.
It is calculated that bet365 would have had 86 million accesses from Brazil , while sportingbet reaches 12 million views. Very important figures of companies operating from the United Kingdom and that under other legislation and coverage accept Brazilian players. Instead, Betsson's strategy was to acquire 75% of Suaposta hoping to see a national regulation of the Brazilian betting market soon.
The two-year period for the regulation of sports betting according to the law that was passed in 2018 has already expired. The deadline has been automatically extended for another two years . This means that the much-needed regulation of companies operating in the country's market is non-existent, leaving local operators absolutely defenseless in the face of powerful foreign competition.
Legislative steps still very timid
There has been no shortage of proposals like the one proposed by the establishment of integrated resorts in the Amazon region , specifically, in the Manaus free trade zone; with the casino Hard Rock International on the exit ramp.
The COVID-19 crisis, where Brazil is being one of the most affected countries and today in a catastrophic situation , led the government of Jair Bolsonaro to declare the popular lotteries an essential activity .
Up to four proposals for the legalization of gambling would be in the Senate today, the most advanced being that of Senator Nogueira. Ciro Nogueira's proposal would regulate all gambling , whether it is face-to-face games or online casinos, including the lottery jogo do bicho and sports betting throughout the national territory, online and in integrated casinos and resorts.
