This week, Brazil’s aspirations to ultimately oversee its gaming sector faced another setback. The Senate’s gaming legislation, PLS 186/2014, was delayed by the Constitution and Justice Committee (CCJ). Rumors suggest that with upcoming elections, the entire matter could be postponed until 2019.
This is a disappointment to many who recognize the possibilities within Brazil’s gaming industry. In the previous November, research commissioned by the Remote Gambling Association projected that a properly regulated internet gambling sector in Brazil could yield up to $2.1 billion each year.
The analysis, conducted by KPMG, advised that Brazil implement a “reasonable and efficient” licensing structure. They also proposed a tax system based on gross gaming income instead of revenue, a slightly different approach compared to some other nations. Naturally, they stressed responsible gaming protocols for online casinos and sports wagering.
Nevertheless, with these recent postponements, the vision of a controlled market is diminishing. Currently, attention is focused on the privatization of LOTEX, the Rio de Janeiro state lottery.
Adding to the complexity, mere days before the ballot, certain senators introduced some contentious modifications. One such amendment would compel gambling providers to collaborate with domestic firms, granting the Brazilian companies a minimum 30% ownership.
A daring legislative change suggesting a substantial 30% levy on all gaming proceeds, encompassing both brick-and-mortar establishments and internet-based platforms, has encountered pushback. Although there’s consensus on prohibiting slot machines and video bingo outside casino settings, this controversial 30% tariff remains unresolved. The destiny of Legislation 186, which seeks to authorize gambling within Brazil, hangs precariously as a dedicated committee examines the possible ramifications of such an action. This unfolds amidst findings from the Brazilian Institute of Legal Gaming that approximate a massive $6.2 billion generated yearly through illicit gaming operations. For many years, the legitimization of gambling has been a contentious subject within Brazil’s legislative body, with numerous proposals failing to gain support due to steadfast resistance.
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