Brazil one step closer to online gambling regulation

Brazil one step closer to online gambling regulation

Staff Writer
March 14, 2016

BrazilHouse of Representatives committee proposed comprehensive gambling legislation that will bring Brazil one step closer to launching a regulated online gambling market, Calvin Ayre has reported.

Special Committee on National Development (CEDN) approved a great number of amendments last week in country’s efforts to legalize gambling in the near future.

The proposed bill includes an overhaul of Brazil’s gambling market with the introduction of casinos, online sports betting, video terminals and casino products as key aspects of the legislation.

Even though gambling is illegal in Brazil, there is a lottery-type drawing that is highly popular underground game in 25 states, including Rio de Janeiro. The game called “Jogo do Bicho” (Animal Game) has been outlawed in 1946, with the exception of the state of Paraiba where it is legally regulated.

Financially troubled government hopes that the approval of the gambling bill could allow Brazil to earn as much as $4.15 billion of annual tax.

The Brazilian Institute of Gaming estimates that up to 200,000 Brazilians travel outside of the country each month to gamble and that Brazilian nationals are 70% of the total number of gamblers in Uruguayan casinos and the gambling regulation could be a huge help for the country’s economy.

The original version of the bill SB 186/2014 had already been approved in December, but senators subsequently proposed additional amendments and the new bill now also features defined tax rates for different gambling activities.

Online operators in Brazil will be made to pay twice the amount land-based casinos.

The higher rate is justified by the fact that greater startup costs are included in brick-and-mortar operations, which means that online operators will have higher profit margin and will be able to pay more taxes.

The number of online licences Brazil are planning on issuing is still unknown, while there is still no indication as to the cost of a gambling licence or its duration.

However, the bill proposes that licences issued to land-based operators will be valid for 30 years. In addition, up to 35 casinos are planned in the bill. Each state is allowed at least one casino, but not more than three in a single state.



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